Economic News Release

Producer Price Index News Release text

Transmission of material in this release is embargoed until                          USDL 16-0746 
8:30 a.m. (EDT), Wednesday, April 13, 2016

Technical information:      (202) 691-7705  *  ppi-info@bls.gov  *  www.bls.gov/ppi
Media contact:              (202) 691-5902  *  PressOffice@bls.gov                                    


                              PRODUCER PRICE INDEXES - MARCH 2016


The Producer Price Index for final demand fell 0.1 percent in March, seasonally adjusted, the 
U.S. Bureau of Labor Statistics reported today. Final demand prices decreased 0.2 percent in 
February and advanced 0.1 percent in January. On an unadjusted basis, the final demand index 
moved down 0.1 percent for the 12 months ended in March. (See table A.)

The decrease in the final demand index in March can be traced to prices for final demand 
services, which declined 0.2 percent. In contrast, prices for final demand goods rose 0.2 percent.

The index for final demand less foods, energy, and trade services was unchanged in March after 
four consecutive advances. For the 12 months ended in March, prices for final demand less 
foods, energy, and trade services rose 0.9 percent.  

Final Demand

Final demand services: The index for final demand services fell 0.2 percent in March, the first 
decline since October 2015. In March, a 0.5-percent decrease in margins for final demand trade 
services accounted for over 80 percent of the broad-based decline in prices for final demand 
services. (Trade indexes measure changes in margins received by wholesalers and retailers.) The 
indexes for final demand transportation and warehousing services and for final demand services 
less trade, transportation, and warehousing fell 0.3 percent and 0.1 percent, respectively. 

Product detail: Three-quarters of the March decrease in prices for final demand services can be 
attributed to margins for machinery, equipment, parts, and supplies wholesaling, which moved 
down 1.9 percent. The indexes for chemicals and allied products wholesaling, consumer loans 
(partial), physician care, fuels and lubricants retailing, and truck transportation of freight also 
decreased. Conversely, margins for food and alcohol retailing increased 2.3 percent. Prices for 
traveler accommodation services and airline passenger services also rose. (See table 4.)

Final demand goods: The index for final demand goods moved up 0.2 percent in March 
following eight straight declines. Most of the increase can be traced to prices for final demand 
energy, which rose 1.8 percent. The index for final demand goods less foods and energy inched 
up 0.1 percent. In contrast, prices for final demand foods declined 0.9 percent. 

Product detail: Leading the March rise in prices for final demand goods, the gasoline index 
jumped 7.1 percent. Prices for carbonated soft drinks in bottles and cans, home heating oil, jet 
fuel, iron and steel scrap, and pharmaceutical preparations also moved higher. Conversely, the 
index for fresh and dry vegetables dropped 12.0 percent. Prices for electric power and motor 
vehicles also decreased. 

Table A. Monthly and 12-month percent changes in selected final demand price indexes, seasonally adjusted
Month Total
final
demand
Final
demand
less
foods,
energy,
and
trade
Final demand goods Final demand services Change
in final
demand
from 12
months
ago
(unadj.)
Change
in final
demand
less
foods,
energy,
and
trade
from 12
mo. ago
(unadj.)
Total Foods Energy Less
foods
and
energy
Total Trade Transportation
and
warehousing
Other

2015

Mar.

0.0 0.0 -0.1 -0.9 0.6 -0.1 0.1 0.2 -0.3 0.1 -0.9 0.7

Apr.

0.0 0.2 -0.5 -0.9 -2.1 0.1 0.2 0.0 -0.3 0.4 -1.1 0.8

May

0.5 0.0 1.2 1.1 5.7 0.1 0.0 0.2 -0.1 -0.1 -0.8 0.7

June

0.3 0.3 0.5 0.4 0.7 0.4 0.3 0.3 0.2 0.3 -0.5 0.8

July

0.1 0.1 -0.3 -0.8 -0.7 0.0 0.3 0.6 -0.1 0.1 -0.7 0.9

Aug.

-0.2 0.0 -0.5 0.2 -2.6 -0.2 -0.1 -0.4 -0.9 0.2 -1.0 0.6

Sept.

-0.5 -0.1 -1.0 -0.3 -5.3 0.0 -0.1 0.2 0.0 -0.2 -1.1 0.5

Oct.

-0.2 -0.2 -0.3 -0.7 -0.2 -0.3 -0.2 -0.2 -0.1 -0.1 -1.4 0.4

Nov.(1)

0.1 0.1 -0.1 -0.3 0.1 -0.1 0.1 0.1 0.1 0.1 -1.3 0.2

Dec.(1)

0.0 0.2 -0.6 -0.9 -3.2 0.2 0.4 0.5 -0.6 0.4 -1.0 0.3

2016

Jan.

0.1 0.2 -0.7 1.0 -5.0 0.0 0.5 0.9 0.4 0.4 -0.2 0.8

Feb.

-0.2 0.1 -0.6 -0.3 -3.4 0.1 0.0 -0.4 -0.7 0.3 0.0 0.9

Mar.

-0.1 0.0 0.2 -0.9 1.8 0.1 -0.2 -0.5 -0.3 -0.1 -0.1 0.9

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for November 2015 have been revised to reflect the availability of late reports and corrections by respondents.

Intermediate Demand by Commodity Type

Within intermediate demand in March, prices for processed goods moved down 0.2 percent, the 
index for unprocessed goods rose 2.5 percent, and prices for services fell 0.3 percent. (See tables B 
and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand fell 0.2 percent in March, the ninth straight decline. Sixty percent of the March decrease can 
be traced to prices for processed materials less foods and energy, which moved down 0.1 percent. 
The index for processed foods and feeds fell 0.6 percent. Prices for processed energy goods were 
unchanged. For the 12 months ended in March, the index for processed goods for intermediate 
demand fell 5.5 percent.

Product detail: Over 80 percent of the March decline in prices for processed goods for intermediate 
demand can be attributed to the index for primary basic organic chemicals, which dropped 5.5 
percent. Prices for electric power, utility natural gas, lubricating oil base stocks, industrial gases, and 
processed eggs also moved lower. In contrast, the gasoline index climbed 7.1 percent. Prices for 
diesel fuel and primary nonferrous metals also increased. (See table 5.)

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate 
demand advanced 2.5 percent in March following eight consecutive decreases. Nearly 80 percent of 
the rise is attributable to prices for unprocessed energy goods, which increased 6.1 percent. The 
index for unprocessed nonfood materials less energy moved up 2.1 percent. Conversely, prices for 
unprocessed foodstuffs and feedstuffs inched down 0.1 percent. For the 12 months ended in March, 
the index for unprocessed goods for intermediate demand fell 14.1 percent, the smallest 12-month 
decline since an 8.7-percent decrease in December 2014.

Product detail: Leading the March advance in prices for unprocessed goods for intermediate 
demand, the crude petroleum index surged 40.7 percent. Prices for slaughter steers and heifers, iron 
and steel scrap, nonferrous metal ores, coal, and nonferrous scrap also moved higher. In contrast, the 
index for corn declined 3.8 percent. Prices for natural gas and for hides and skins also fell.

Table B. Monthly and 12-month percent changes in selected intermediate demand price indexes for goods by commodity type, seasonally adjusted
Month Processed goods for intermediate demand Unprocessed goods for intermediate demand
Total Foods
and
feeds
Energy
goods
Less
foods
and
energy
Total,
change
from 12
months
ago
(unadj.)
Total Foodstuffs
and
feedstuffs
Energy
materials
Nonfood
materials
less
energy
Total,
change
from 12
months
ago
(unadj.)

2015

Mar.

-0.3 -1.0 0.1 -0.3 -6.7 -0.7 -0.3 -0.5 -1.6 -26.0

Apr.

-0.7 -1.5 -2.8 -0.2 -7.6 0.5 -0.1 1.2 -0.1 -26.3

May

0.8 0.4 4.5 0.0 -6.7 3.1 1.3 7.4 0.1 -23.0

June

0.5 1.7 1.7 0.0 -6.2 0.3 -0.3 1.5 0.2 -22.0

July

-0.3 0.2 -1.0 -0.1 -6.5 -3.5 -2.1 -6.3 -1.5 -23.2

Aug.

-0.8 -0.5 -2.2 -0.5 -7.2 -3.5 0.8 -8.4 -3.9 -23.7

Sept.

-1.3 -1.8 -4.3 -0.5 -8.3 -2.2 -4.3 -1.0 -0.2 -25.7

Oct.

-0.4 -0.7 -1.0 -0.3 -7.7 -1.3 -1.4 -0.4 -2.3 -24.0

Nov.(1)

-0.5 -0.9 -1.1 -0.2 -7.2 -4.3 -2.3 -7.6 -3.7 -26.4

Dec.(1)

-0.9 -2.0 -3.4 -0.2 -6.4 -3.5 -3.7 -4.6 -1.1 -25.0

2016

Jan.

-1.2 -0.4 -4.6 -0.5 -5.4 -0.7 5.5 -10.0 0.0 -17.9

Feb.

-0.7 0.1 -2.9 -0.4 -5.6 -2.1 -2.4 -3.2 0.3 -16.8

Mar.

-0.2 -0.6 0.0 -0.1 -5.5 2.5 -0.1 6.1 2.1 -14.1

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for November 2015 have been revised to reflect the availability of late reports and corrections by respondents.

Services for intermediate demand: The index for services for intermediate demand moved 
down 0.3 percent in March following four consecutive increases. Over three-quarters of the 
decrease can be traced to margins for trade services for intermediate demand, which fell 1.1 
percent. Prices for transportation and warehousing services for intermediate demand declined 0.2 
percent, while the index for services less trade, transportation, and warehousing for intermediate 
demand was unchanged. For the 12 months ended in March, the index for services for 
intermediate demand climbed 1.4 percent.

Product detail: Over half of the March decrease in prices for services for intermediate demand 
can be traced to margins for chemicals and allied products wholesaling, which dropped 6.9 
percent. The indexes for business loans (partial); securities brokerage, dealing, and investment 
advice; parts and supplies for machinery and equipment wholesaling; passenger car rental; and 
truck transportation of freight also moved lower. Conversely, prices for staffing services 
advanced 1.3 percent. The indexes for airline passenger services and for food and alcohol 
wholesaling also moved higher.

Table C. Monthly and 12-month percent changes in selected intermediate demand price indexes for services by commodity type, seasonally adjusted
Month Services for intermediate demand
Total Trade Transportation
and
warehousing
Other Total, change
from 12 months
ago (unadj.)

2015

Mar.

0.3 0.6 -0.3 0.3 1.2

Apr.

0.5 -0.2 0.0 0.7 1.9

May

-0.1 1.1 0.1 -0.6 1.8

June

0.1 -0.4 0.4 0.3 1.7

July

0.3 1.0 0.2 0.1 1.4

Aug.

0.2 -0.8 -0.3 0.6 1.6

Sept.

-0.5 -0.1 -0.2 -0.8 1.1

Oct.

-0.5 -0.3 -0.1 -0.6 0.2

Nov.(1)

0.1 -0.4 0.1 0.2 0.4

Dec.(1)

0.3 -0.6 0.0 0.6 0.5

2016

Jan.

1.1 0.1 -0.7 1.8 1.5

Feb.

0.3 0.0 -0.2 0.4 1.9

Mar.

-0.3 -1.1 -0.2 0.0 1.4

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for November 2015 have been revised to reflect the availability of late reports and corrections by respondents.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: The index for stage 4 intermediate demand moved down 0.3 
percent in March following a 0.1-percent decline a month earlier. In March, prices for total 
services inputs to stage 4 intermediate demand decreased 0.5 percent, and the index for total 
goods inputs edged down 0.1 percent. (See table D.) Decreases in the indexes for chemicals and 
allied products wholesaling; business loans (partial); parts and supplies for machinery and 
equipment wholesaling; securities brokerage, dealing, and investment advice; electric power; and 
strawberries outweighed increases in prices for gasoline, staffing services, and concrete products. 
(See table 6.) For the 12 months ended in March, prices for stage 4 intermediate demand fell 1.1 
percent.

Stage 3 intermediate demand: The index for stage 3 intermediate demand was unchanged in March 
following a 0.9-percent decline in February. In March, prices for total goods inputs to stage 3 
intermediate demand advanced 0.3 percent. In contrast, the index for total services inputs decreased 
0.3 percent. Higher prices for slaughter steers and heifers, gasoline, jet fuel, raw milk, and 
advertising in periodicals and newspapers offset declines in the indexes for chemicals and allied 
products wholesaling, primary basic organic chemicals, ungraded chicken eggs, business loans 
(partial), and slaughter poultry. For the 12 months ended in March, the index for stage 3 intermediate 
demand moved down 4.2 percent.

Stage 2 intermediate demand: The index for stage 2 intermediate demand advanced 0.5 percent in 
March following a 0.3-percent decline in February. In March, prices for total goods inputs to stage 2 
intermediate demand climbed 1.3 percent, and the index for total services inputs edged up 0.1 
percent. Increasing prices for crude petroleum, staffing services, liquefied petroleum gas, services 
related to securities brokerage and dealing, coal, and hot rolled steel sheet and strip outweighed 
decreases in the indexes for natural gas; securities brokerage, dealing, and investment advice; and 
hay, hayseeds, and oilseeds. For the 12 months ended in March, prices for stage 2 intermediate 
demand fell 3.7 percent, the smallest 12-month decline since a 3.0-percent decrease in November 
2014.

Stage 1 intermediate demand: The index for stage 1 intermediate demand was unchanged in March 
following eight consecutive declines. In March, prices for total goods inputs to stage 1 intermediate 
demand moved up 0.5 percent. Conversely, the index for total services inputs declined 0.6 percent. 
Higher prices for iron and steel scrap, crude petroleum, nonferrous scrap, diesel fuel, and services 
related to securities brokerage and dealing offset decreases in the indexes for chemicals and allied 
products wholesaling; primary basic organic chemicals; business loans (partial); natural gas; and 
securities brokerage, dealing, and investment advice. For the 12 months ended in March, the index 
for stage 1 intermediate demand fell 5.4 percent, the smallest 12-month decline since a 2.4-percent 
decrease in December 2014.

Table D. Monthly percent changes in selected intermediate demand price indexes by production flow, seasonally adjusted
Month Stage 4 intermediate
demand
Stage 3 intermediate
demand
Stage 2 intermediate
demand
Stage 1 intermediate
demand
Total Goods
inputs
Services
inputs
Total Goods
inputs
Services
inputs
Total Goods
inputs
Services
inputs
Total Goods
inputs
Services
inputs

2015

Mar.

0.0 -0.2 0.4 0.3 0.3 0.2 -0.4 -1.1 0.0 -0.2 -0.6 0.4

Apr.

0.0 -0.5 0.5 -0.3 -0.9 0.5 0.2 -0.2 0.7 -0.4 -1.1 0.4

May

0.3 0.6 0.0 1.2 2.3 0.0 0.8 2.1 -0.2 0.7 1.4 -0.2

June

0.2 0.3 0.0 0.3 0.4 0.1 0.3 0.3 0.2 0.5 0.6 0.1

July

0.0 -0.2 0.2 -0.4 -1.0 0.3 -0.7 -2.0 0.5 -0.2 -0.5 0.3

Aug.

-0.2 -0.4 0.2 -0.5 -1.1 0.2 -1.1 -3.0 0.3 -1.1 -1.7 -0.1

Sept.

-0.5 -0.8 -0.5 -1.8 -3.0 -0.4 -0.8 -1.2 -0.6 -1.5 -2.3 -0.6

Oct.

-0.3 -0.2 -0.5 -0.6 -1.0 -0.4 -0.4 -0.2 -0.6 -0.8 -0.9 -0.6

Nov.(1)

-0.1 -0.2 0.2 -0.4 -0.7 0.0 -1.2 -2.9 0.0 -0.8 -1.4 0.0

Dec.(1)

-0.4 -0.8 0.1 -0.9 -2.1 0.3 0.0 -1.3 0.8 -1.2 -1.8 -0.3

2016

Jan.

0.3 -0.3 0.9 0.1 -0.6 0.8 -1.0 -3.9 1.0 -0.2 -1.4 1.3

Feb.

-0.1 -0.4 0.1 -0.9 -2.1 0.3 -0.3 -1.4 0.5 -0.6 -1.2 0.1

Mar.

-0.3 -0.1 -0.5 0.0 0.3 -0.3 0.5 1.3 0.1 0.0 0.5 -0.6

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for November 2015 have been revised to reflect the availability of late reports and corrections by respondents.

_____________
The Producer Price Index for April 2016 is scheduled to be released on Friday, May 13, 2016 at 
8:30 a.m. (EDT).


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Last Modified Date: April 13, 2016
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