February 2025 Producer Price Index

Historical release narrative reproduced from the official public-domain source. Statistical tables, standard technical appendices, administrative material and attendance rosters are omitted; formatting is adapted for reading. Figures retain the release's historical context and may have been revised. Consult the linked source for the complete document.

The Producer Price Index for final demand was unchanged in February, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices rose 0.6 percent in January and 0.5 percent in December 2024. (See table A.) On an unadjusted basis, the index for final demand advanced 3.2 percent for the 12 months ended in February.

In February, a 0.3-percent increase in prices for final demand goods offset a 0.2-percent decline in the index for final demand services.

The index for final demand less foods, energy, and trade services moved up 0.2 percent in February after rising 0.3 percent in January. For the 12 months ended in February, prices for final demand less foods, energy, and trade services advanced 3.3 percent.

Final Demand

Final demand goods: The index for final demand goods increased 0.3 percent in February, the fifth consecutive rise. Leading the February advance, prices for final demand foods jumped 1.7 percent. The index for final demand goods less foods and energy moved up 0.4 percent. In contrast, prices for final demand energy fell 1.2 percent.

Product detail: Two-thirds of the February increase in the index for final demand goods is attributable to prices for chicken eggs, which jumped 53.6 percent. The indexes for pork, fresh and dry vegetables, electric power, tobacco products, and carbon steel scrap also moved higher. Conversely, prices for gasoline declined 4.7 percent. The indexes for processed young chickens and for primary basic organic chemicals also decreased. (See table 2.)

Final demand services: The index for final demand services fell 0.2 percent in February, the largest decline since moving down 0.2 percent in July 2024. The February decrease can be traced to margins for final demand trade services, which dropped 1.0 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) In contrast, prices for final demand services less trade, transportation, and warehousing rose 0.2 percent, while the index for final demand transportation and warehousing services was unchanged.

Product detail: Over 40 percent of the February decline in prices for final demand services is attributable to margins for machinery and vehicle wholesaling, which decreased 1.4 percent. The indexes for food and alcohol retailing; automobiles and automobile parts retailing; apparel, footwear, and accessories retailing; chemicals and allied products wholesaling; and residential real estate loans (partial) also moved lower. Conversely, prices for inpatient care advanced 0.8 percent. The indexes for hospital outpatient care and for machinery and equipment parts and supplies wholesaling also increased.

Intermediate Demand by Commodity Type

Within intermediate demand in February, the index for processed goods rose 0.5 percent, prices for unprocessed goods increased 1.3 percent, and the index for services fell 0.2 percent. (See tables B and C.)

Processed goods for intermediate demand: Prices for processed goods for intermediate demand moved up 0.5 percent in February, the fifth consecutive advance. Over 40 percent of the broad-based February increase can be traced to a 0.3-percent rise in the index for processed materials less foods and energy. Prices for processed foods and feeds and for processed energy goods also moved higher, 2.0 percent and 0.5 percent, respectively. For the 12 months ended in February, the index for processed goods for intermediate demand advanced 0.3 percent.

Product detail: A major factor in the February rise in prices for processed goods for intermediate demand was a 2.9-percent increase in the index for ethanol. Prices for commercial electric power, natural gas to electric utilities, pork, jet fuel, and thermoplastic resins and plastics materials also advanced. In contrast, the index for diesel fuel declined 3.9 percent. Prices for primary basic organic chemicals and for confectionary materials also fell.

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate demand rose 1.3 percent in February, the third consecutive advance. Leading the February increase, prices for unprocessed foodstuffs and feedstuffs jumped 5.1 percent. The index for unprocessed nonfood materials less energy moved up 2.2 percent. Conversely, prices for unprocessed energy materials fell 3.1 percent. For the 12 months ended in February, the index for unprocessed goods for intermediate demand advanced 10.5 percent, the largest 12-month increase since a 10.7-percent rise in December 2022.

Product detail: Leading the February increase in the index for unprocessed goods for intermediate demand, prices for ungraded chicken eggs jumped 111.2 percent. The indexes for raw milk; carbon steel scrap; nonferrous metal ores; construction sand, gravel, and crushed stone; and fresh vegetables (except potatoes) also advanced. In contrast, prices for crude petroleum declined 2.4 percent. The indexes for hay, hayseeds, and oilseeds and for aluminum base scrap also fell.

Services for intermediate demand: Prices for services for intermediate demand fell 0.2 percent in February, the same as in January. The February decline can be attributed to the index for services less trade, transportation, and warehousing for intermediate demand, which moved down 0.4 percent. Conversely, prices for transportation and warehousing services for intermediate demand increased 0.1 percent, while the index for trade services for intermediate demand was unchanged. For the 12 months ended in February, prices for services for intermediate demand rose 1.9 percent.

Product detail: Leading the February decrease in the index for services for intermediate demand, prices for nonresidential real estate rents declined 0.4 percent. The indexes for business loans (partial); television advertising time sales; chemicals and allied products wholesaling; securities brokerage, dealing, and investment advice; and airmail and package delivery services (excluding USPS) also moved lower. In contrast, prices for warehousing, storage, and related services rose 1.3 percent. The indexes for business wired telephone services and for building materials, paint, and hardware wholesaling also moved higher.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: Prices for stage 4 intermediate demand were unchanged in February following a 0.2-percent rise in January. In February, a 0.3-percent increase in the index for total goods inputs to stage 4 intermediate demand offset a 0.3-percent decline in prices for total services inputs. (See table D.) Advances in the indexes for commercial electric power, pork, machinery and equipment parts and supplies wholesaling, and ungraded chicken eggs offset decreases in the indexes for nonresidential real estate rents, gasoline, business loans (partial), and chemicals and allied products wholesaling. For the 12 months ended in February, prices for stage 4 intermediate demand moved up 2.0 percent.

Stage 3 intermediate demand: The index for stage 3 intermediate demand rose 0.7 percent in February, the fourth consecutive advance. In February, prices for total goods inputs to stage 3 intermediate demand moved up 1.9 percent. Conversely, the index for total services inputs declined 0.2 percent. Increases in the indexes for ungraded chicken eggs; raw milk; jet fuel; thermoplastic resins and plastics materials; commercial electric power; and building materials, paint, and hardware wholesaling outweighed decreases in prices for diesel fuel, television advertising time sales, and business loans (partial). For the 12 months ended in February, the index for stage 3 intermediate demand rose 2.1 percent.

Stage 2 intermediate demand: Prices for stage 2 intermediate demand moved down 0.5 percent in February following a 1.8-percent increase in January. In February, the index for total goods inputs to stage 2 intermediate demand declined 1.0 percent, and prices for total services inputs fell 0.2 percent. Decreases in the indexes for crude petroleum, gas fuels, business loans (partial), broadcast and network television advertising time sales, oilseeds, and primary basic organic chemicals outweighed advances in prices for carbon steel scrap, ethanol, and deposit services (partial). For the 12 months ended in February, the index for stage 2 intermediate demand rose 2.3 percent.

Stage 1 intermediate demand: The index for stage 1 intermediate demand rose 0.1 percent in February, the third consecutive increase. In February, prices for total goods inputs to stage 1 intermediate demand advanced 0.6 percent. In contrast, the index for total services inputs fell 0.3 percent. Increases in the indexes for commercial electric power; carbon steel scrap; directory and mailing list publishing sales; natural gas to electric utilities; and building materials, paint, and hardware wholesaling outweighed declines in prices for nonresidential real estate rents, diesel fuel, data processing and related services, and primary basic organic chemicals. For the 12 months ended in February, the index for stage 1 intermediate demand moved up 1.0 percent.

Resampling of Industries - February 2025

Effective with the release of data for February 2025, the Producer Price Index (PPI) includes data for 13 resampled industries classified according to the 2022 North American Industry Classification System (NAICS). The Bureau of Labor Statistics periodically updates the sample of producers providing data for the PPI to reflect current conditions more accurately when the structure, membership, technology, or product mix of an industry shifts. The first results of this systematic process were published in July 1986. Subsequent efforts have been completed at regular intervals.

For information on index additions, deletions, and recodes effective February 2025, see the current issue of the PPI Detailed Report online at www.bls.gov/ppi/detailed-report/ppi-detailed- report-february-2025.pdf, or contact the PPI Section of Index Analysis and Public Information at ppi-info@bls.gov or (202) 691-7705.

NAICS Code Industry 211120 Crude petroleum extraction* 211130 Natural gas extraction** 212323 Kaolin, clay, and ceramic and refractory minerals mining 331513 Steel foundries, except investment 334519 Other measuring and controlling device manufacturing 335312 Motor and generator manufacturing 459120 Hobby, toy, and game retailers 482111 Line-haul railroads 484110 General freight trucking, local 484210 Used household and office goods moving 523150 Investment banking and securities intermediation 562111 Solid waste collection 713940 Fitness and recreational sports centers

* This update reflects a transition to NAICS 2022 and includes information previously included under PPI-published industry code NAICS 211111. ** This update reflects a transition to NAICS 2022 and includes information previously included under PPI-published industry codes NAICS 211111 and NAICS 211112.