Economic News Release

Producer Price Index News Release text

Transmission of material in this release is embargoed until                          USDL-14-0567
8:30 a.m. (EDT), Friday, April 11, 2014

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                            PRODUCER PRICE INDEXES - MARCH 2014


The Producer Price Index for final demand advanced 0.5 percent in March, seasonally adjusted, 
the U.S. Bureau of Labor Statistics reported today. This increase followed a decline of 0.1 
percent in February and a rise of 0.2 percent in January. On an unadjusted basis, the index for 
final demand moved up 1.4 percent for the 12 months ended in March, the largest 12-month 
advance since a 1.7-percent increase in August 2013. (See table A.)

In March, the 0.5-percent increase in final demand prices can be traced to the index for final 
demand services, which rose 0.7 percent. Prices for final demand goods were unchanged.

Within intermediate demand, the index for processed goods declined 0.2 percent, prices for 
unprocessed goods edged down 0.1 percent, and the index for services rose 0.4 percent. (See 
tables B and C.)

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

2013

Mar.

-0.1 -0.5 0.9 -3.8 0.1 0.2 0.2 -0.1 0.1 1.3

Apr.

0.0 -0.7 -1.3 -2.4 0.0 0.2 0.6 -0.7 0.3 0.9

May

-0.1 0.4 1.1 1.2 0.1 -0.4 -1.4 0.1 0.1 0.9

June

0.5 0.3 -0.3 1.5 0.1 0.6 1.0 0.8 0.3 1.7

July

0.3 0.1 0.3 -0.1 0.0 0.5 1.0 0.7 0.0 2.0

Aug.

-0.1 0.0 -0.6 0.7 0.0 -0.1 -0.6 0.1 0.2 1.7

Sept.

0.1 -0.1 -0.7 0.2 0.0 0.2 0.4 -0.1 0.1 1.1

Oct.

0.3 0.1 0.3 0.0 0.0 0.3 0.2 0.3 0.3 1.3

Nov.(1)

0.0 -0.1 -0.2 -0.6 0.1 0.0 0.2 -0.5 0.1 1.1

Dec.(1)

0.0 0.4 -0.5 1.3 0.3 -0.2 -0.7 1.2 0.0 1.1

2014

Jan.

0.2 0.4 1.0 0.3 0.4 0.1 0.1 -1.1 0.1 1.2

Feb.

-0.1 0.4 0.6 0.5 0.2 -0.3 -1.0 -0.2 0.1 0.9

Mar.

0.5 0.0 1.1 -1.2 0.1 0.7 1.4 0.5 0.4 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 2013 have been revised to reflect the availability of late reports and corrections by respondents.

Final Demand

(Final demand includes goods, services, and construction which are sold for personal 
consumption, capital investment, government purchases, and export. See table 4 for product 
detail.)

Final demand services:  The index for final demand services rose 0.7 percent in March, the 
largest advance since a 0.8-percent jump in January 2010. In March, over 60 percent of the 
broad-based increase can be traced to margins for final demand trade services, which climbed 1.4 
percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) 
Prices for final demand services less trade, transportation, and warehousing increased 0.4 
percent, and the index for final demand transportation and warehousing services rose 0.5 percent. 

Product detail:  In March, a 3.3-percent increase in margins for apparel, jewelry, footwear, and 
accessories retailing led the advance in prices for final demand services. The indexes for 
chemicals and allied products wholesaling; services related to securities brokerage and dealing; 
portfolio management; food wholesaling; and airline passenger services also increased. In 
contrast, prices for guestroom rental fell 2.4 percent. The indexes for automotive fuels and 
lubricants retailing and for loan services (partial) also moved lower in March. (See table 4.)

Final demand goods:  Prices for final demand goods were unchanged in March after moving up 
0.4 percent in each of the prior three months. In March, a 1.1-percent increase in the index for 
final demand foods and a 0.1-percent rise in prices for final demand goods less foods and energy 
offset a 1.2-percent decline in the index for final demand energy.

Product detail:  In March, advances in the indexes for pork; residential natural gas; 
pharmaceutical preparations; sausage, deli, and boxed meats; and fluid milk products offset 
declines in prices for gasoline, diesel fuel, liquefied petroleum gas, primary basic organic 
chemicals, and fresh fruit and melons. 

Special grouping, Final demand less foods, energy, and trade:  Prices for final demand less 
foods, energy, and trade services rose 0.3 percent in March after edging up 0.1 percent in each of 
the prior two months. (The index for final demand less foods, energy, and trade services 
represents about two-thirds of final demand.)

Special grouping, Finished goods:  The index for finished goods edged down 0.1 percent in 
March, the first decrease since September 2013. (The finished goods index represents about two-
thirds of final demand goods, through the exclusion of the weight for government purchases and 
exports. The finished goods index represents about one-quarter of overall final demand.) The 
March decline was led by the index for finished consumer energy goods, which fell 1.0 percent. 
Conversely, prices for finished consumer foods and for finished goods less foods and energy 
increased 0.7 percent and 0.1 percent, respectively. Within finished goods, lower prices for 
gasoline, liquefied petroleum gas, diesel fuel, light motor trucks, and fresh fruits and melons 
outweighed higher prices for pork, residential natural gas,  pharmaceutical preparations, and 
sausage, deli, and boxed meats.

Intermediate Demand

(Intermediate demand includes goods, services, and maintenance and repair construction sold to 
businesses, excluding capital investment. BLS publishes two parallel treatments of intermediate 
demand, each constructed from the identical set of commodity price indexes. The first treatment 
organizes commodities according to commodity type, and the second organizes commodities 
using a stage-based, production flow model. See the technical note for more information.)

Intermediate Demand by Commodity Type

Processed goods for intermediate demand:  The index for processed goods for intermediate 
demand fell 0.2 percent in March, the first decline since moving down 0.3 percent in November 
2013. Leading the March decrease, prices for processed energy goods fell 1.2 percent. The index 
for processed materials less foods and energy declined 0.2 percent. In contrast, prices for 
processed foods and feeds rose 1.6 percent. For the 12 months ended in March, the index for 
processed goods for intermediate demand advanced 0.7 percent, the largest 12-month increase 
since a 1.3-percent rise in July 2013. (See table B.)

Product detail:  In March, a 7.0-percent decrease in diesel fuel prices was a major factor in the 
decline in the index for processed goods for intermediate demand. The indexes for primary basic 
organic chemicals, gasoline, commercial electric power, liquefied petroleum gas, and jet fuel 
also fell. Conversely, prices for prepared animal feeds climbed 1.8 percent in March. The 
indexes for utility natural gas and ethanol also advanced. (See table 5.)

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.)

2013

Mar.

-1.1 0.3 -4.6 -0.1 -0.9 -0.5 1.4 -3.2 0.8 0.0

Apr.

-0.6 -1.0 -2.0 -0.2 -1.1 -0.3 -1.9 3.1 -2.4 3.0

May

0.1 1.2 0.5 -0.2 -0.2 2.0 1.9 4.5 -1.7 7.5

June

0.3 0.1 1.0 0.0 0.8 -0.6 -1.3 0.0 -0.8 10.7

July

0.0 1.6 0.3 -0.2 1.3 0.2 -0.7 0.9 -0.1 8.5

Aug.

0.0 -2.3 0.6 0.2 0.4 -1.4 -3.4 -0.5 0.0 1.9

Sept.

0.1 0.5 0.3 -0.1 -0.6 -0.1 -0.7 1.0 -1.2 0.5

Oct.

-0.1 -1.8 0.0 0.1 -0.8 -0.5 1.1 -1.8 -0.6 -0.5

Nov.(1)

-0.3 -0.9 -0.9 -0.1 -0.4 -1.7 -0.6 -4.0 1.0 -3.0

Dec.(1)

0.4 0.2 1.1 0.2 0.0 1.9 -0.6 4.9 0.9 -2.1

2014

Jan.

0.6 1.7 1.4 0.3 0.3 0.9 3.5 -1.5 1.4 -0.9

Feb.

0.7 1.1 1.0 0.6 0.0 5.7 0.5 14.7 -0.7 5.4

Mar.

-0.2 1.6 -1.2 -0.2 0.7 -0.1 7.6 -6.8 0.5 5.8

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for November 2013 have been revised to reflect the availability of late reports and corrections by respondents.

Unprocessed goods for intermediate demand:  The index for unprocessed goods for 
intermediate demand edged down 0.1 percent in March, the first decline since a 1.7-percent 
decrease in November 2013. In March, prices for unprocessed energy materials fell 6.8 percent. 
In contrast, the index for unprocessed foodstuffs and feedstuffs jumped 7.6 percent. Prices for 
unprocessed nonfood materials less energy moved up 0.5 percent. For the 12 months ended in 
March, the index for unprocessed goods for intermediate demand rose 5.8 percent, the largest 12-
month increase since an 8.5-percent advance in July 2013.

Product detail:  In March, a 10.9-percent drop in natural gas prices was a major factor in the 
decline in the index for unprocessed goods for intermediate demand. Prices for crude petroleum, 
carbon steel scrap, copper base scrap, and fresh fruits and melons also fell. Conversely, the 
slaughter hogs index surged 30.4 percent in March. Prices for slaughter poultry, slaughter cattle, 
and nonferrous metal ores also rose.

Services for intermediate demand:  The index for services for intermediate demand moved up 
0.4 percent, the largest rise since a 0.4-percent increase in June 2013. In March, the broad-based 
advance was led by prices for services less trade, transportation, and warehousing for 
intermediate demand, which increased 0.4 percent. The index for trade services for intermediate 
demand climbed 0.5 percent,  and prices for transportation and warehousing services for 
intermediate demand moved up 0.2 percent. For the 12 months ended in March, the index for 
services for intermediate demand advanced 1.6 percent, the largest 12-month increase since a 
1.8-percent rise in September 2013. (See table C.)

Product detail:  Leading the March increase in the index for services for intermediate demand, 
prices for services related to securities brokerage and dealing jumped 8.8 percent. The indexes 
for portfolio management, chemicals and allied product wholesaling, passenger car rental, paper 
and plastics products wholesaling, and food wholesaling also increased. In contrast, margins for 
parts and supplies for machinery and equipment wholesaling fell 1.8 percent. The indexes for 
loan services (partial) and for securities brokerage, dealing, and investment advice also declined.

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.)

2013

Mar.

0.1 1.4 0.0 -0.4 2.2

Apr.

0.4 0.2 -0.1 0.7 2.4

May

-0.5 -2.1 -0.1 -0.1 1.7

June

0.4 0.4 0.3 0.3 2.2

July

0.1 0.6 0.4 0.0 1.9

Aug.

0.2 -0.3 0.3 0.3 2.1

Sept.

0.1 0.7 0.2 -0.1 1.8

Oct.

0.2 -0.3 0.3 0.2 1.2

Nov.(1)

0.2 0.8 0.0 0.1 0.9

Dec.(1)

-0.1 -0.5 0.3 -0.1 1.0

2014

Jan.

0.0 -0.3 -0.3 0.3 0.9

Feb.

0.2 -0.1 1.0 0.0 1.2

Mar.

0.4 0.5 0.2 0.4 1.6

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for November 2013 have been revised to reflect the availability of late reports and corrections by respondents.

Intermediate Demand by Production Flow

Stage 4 intermediate demand (The stage 4 intermediate demand index measures price 
changes for products purchased by industries that primarily produce output sold to final 
demand.):  The index for stage 4 intermediate demand advanced 0.2 percent in March, the fourth 
consecutive rise. In March, the index for total services inputs to stage 4 intermediate demand 
moved up 0.5 percent, and prices for total goods inputs fell 0.1 percent. (See table D.) Increases 
in the indexes for services related to securities brokerage and dealing, portfolio management, 
chemicals and allied products wholesaling, food wholesaling, passenger car rental, and grains 
outweighed decreases for diesel fuel, parts and supplies for machinery and equipment 
wholesaling, and jet fuel. For the 12 months ended in March, the index for stage 4 intermediate 
demand advanced 1.3 percent, the largest 12-month rise since climbing 1.3 percent in August 
2013. (See table 6.)

Stage 3 intermediate demand (The stage 3 intermediate demand index measures price 
changes for products purchased by industries that primarily produce output sold to industries 
classified in stage 4.):  The index for stage 3 intermediate demand rose 0.9 percent in March, the 
third consecutive increase. In March, prices for total goods inputs to stage 3 intermediate demand 
advanced 1.6 percent, and the index for total services inputs moved up 0.2 percent. Higher prices 
for slaughter hogs, slaughter poultry, raw milk, slaughter cattle, utility natural gas, and cable 
network advertising time sales outweighed lower prices for diesel fuel, gasoline, and loan 
services (partial). For the 12 months ended in March, the index for stage 3 intermediate demand 
rose 2.9 percent, the largest advance since a 4.3-percent increase for the 12 months ended 
January 2012.

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

2013

Mar.

-0.4 -0.7 0.0 -0.6 -0.8 -0.4 -1.0 -1.9 0.3 -0.5 -1.4 0.7

Apr.

0.0 -0.5 0.5 0.1 -0.3 0.4 0.3 0.1 0.5 -0.8 -1.7 0.4

May

-0.2 0.1 -0.4 0.0 0.4 -0.4 0.5 1.7 -1.1 -0.3 -0.2 -0.2

June

0.3 0.2 0.3 0.2 0.0 0.4 0.2 0.1 0.4 0.2 0.3 0.1

July

0.2 0.1 0.2 -0.3 -0.3 -0.2 0.4 0.6 0.2 0.4 0.0 0.6

Aug.

0.1 0.1 0.3 0.1 -0.1 0.3 -0.4 -0.9 0.2 0.3 0.4 0.4

Sept.

0.0 0.0 0.0 0.1 0.1 0.1 0.3 0.3 0.3 -0.2 -0.3 -0.1

Oct.

0.2 0.0 0.3 0.2 0.4 -0.1 -0.9 -1.4 -0.2 -0.1 -0.4 0.5

Nov.(1)

0.0 -0.3 0.2 0.1 -0.1 0.2 -1.3 -2.5 0.3 0.2 0.2 0.2

Dec.(1)

0.1 0.4 0.0 -0.1 0.1 -0.2 1.4 2.7 -0.4 0.5 0.8 0.2

2014

Jan.

0.2 0.4 -0.1 1.0 1.5 0.3 0.1 -0.1 0.4 1.0 1.8 -0.2

Feb.

0.3 0.4 0.2 0.6 0.8 0.4 4.2 7.0 0.2 0.4 0.7 0.2

Mar.

0.2 -0.1 0.5 0.9 1.6 0.2 -2.0 -3.4 0.3 -0.5 -1.5 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 2013 have been revised to reflect the availability of late reports and corrections by respondents.

Stage 2 intermediate demand (The stage 2 intermediate demand index measures price 
changes for products purchased by industries that primarily produce output sold to industries 
classified in stage 3.):  The index for stage 2 intermediate demand moved down 2.0 percent in 
March, the largest decrease since a 2.0-percent decline in June 2012. In March, prices for total 
goods inputs to stage 2 intermediate demand fell 3.4 percent, and the index for total services 
inputs moved up 0.3 percent. Declines in the indexes for natural gas; crude petroleum; liquefied 
petroleum gas; primary basic organic chemicals; metals, minerals, and ores wholesaling; and 
diesel fuel outweighed increases for chemicals and allied products wholesaling, grains, and 
prepared animal feeds. For the 12 months ended in March, the index for stage 2 intermediate 
demand climbed 2.7 percent.

Stage 1 intermediate demand (The stage 1 intermediate demand index measures price 
changes for products purchased by industries that primarily produce output sold to industries 
classified in stage 2.):  The index for stage 1 intermediate demand declined 0.5 percent in 
March, the largest decrease since falling 0.8 percent in April 2013. In March, the index for total 
goods inputs to stage 1 intermediate demand fell 1.5 percent, and prices for total services inputs 
rose 0.9 percent. Decreases in the indexes for primary basic organic chemicals; carbon steel 
scrap; diesel fuel; electric power; gasoline; and securities brokerage, dealing, and investment 
advice outweighed higher prices for services related to securities brokerage and dealing, 
portfolio management, and utility natural gas. For the 12 months ended in March, the index for 
stage 1 intermediate demand rose 1.2 percent.
____________
The Producer Price Index for April 2014 is scheduled to be released on Wednesday, May 14, 2014
at 8:30 a.m. (EDT).



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