Economic News Release

Producer Price Index News Release text

Transmission of material in this release is embargoed until                          USDL-14-1940
8:30 a.m. (EDT), Wednesday, October 15, 2014

Technical information:      (202) 691-7705  *  ppi-info@bls.gov  *  www.bls.gov/ppi
Media contact:              (202) 691-5902  *  PressOffice@bls.gov                                    
           
                        
                        PRODUCER PRICE INDEXES - SEPTEMBER 2014


The Producer Price Index for final demand decreased 0.1 percent in September, seasonally 
adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices were 
unchanged in August and advanced 0.1 percent in July. On an unadjusted basis, the index for 
final demand increased 1.6 percent for the 12 months ended in September. (See table A.)

In September, the 0.1-percent decrease in final demand prices can be traced to the indexes for 
both goods and services, which moved down 0.2 percent and 0.1 percent, respectively.

Within intermediate demand, prices for processed goods inched up 0.1 percent, the index for 
unprocessed goods rose 0.6 percent, and prices for services were unchanged. (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

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.

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

Dec.

0.0 0.4 -0.2 1.2 0.4 -0.2 -1.0 1.6 0.1 1.2

2014

Jan.

0.3 0.5 0.7 0.6 0.5 0.1 0.0 -0.9 0.2 1.3

Feb.

0.2 0.2 0.7 -0.3 0.2 0.3 0.6 -0.4 0.1 1.2

Mar.

0.3 0.1 1.3 -0.2 -0.1 0.4 0.6 0.4 0.3 1.6

Apr.

0.2 0.4 2.6 -0.2 0.2 0.0 -0.3 0.8 0.1 1.8

May(1)

0.2 0.0 -0.3 0.0 0.1 0.3 0.8 0.5 0.0 2.1

June(1)

0.3 0.4 -0.4 1.8 0.1 0.2 -0.1 0.5 0.3 1.9

July

0.1 0.0 0.4 -0.6 0.2 0.1 0.2 0.5 0.0 1.7

Aug.

0.0 -0.3 -0.5 -1.5 0.0 0.3 0.0 0.3 0.3 1.8

Sept.

-0.1 -0.2 -0.7 -0.7 0.2 -0.1 0.0 -0.2 -0.1 1.6

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for May 2014 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 goods:  The index for final demand goods moved down 0.2 percent in September, 
the second consecutive decrease. The September decline was led by prices for final demand 
energy, which fell 0.7 percent. The index for final demand foods also decreased 0.7 percent. In 
contrast, prices for final demand goods less foods and energy advanced 0.2 percent.  

Product detail:  The decline in prices for final demand goods was led by the index for gasoline, 
which dropped 2.6 percent. Prices for meats; oilseeds; corn; dry, condensed, and evaporated milk 
products; and inedible fats and oils also moved lower. Conversely, the index for hair preparations 
increased 5.7 percent. Prices for natural cheese (except cottage cheese) and residual fuels also 
advanced. (See table 4.)

Final demand services:  The index for final demand services edged down 0.1 percent in September, 
the first decline since December 2013. Two-thirds of the September decrease can be traced to prices 
for final demand services less trade, transportation, and warehousing, which fell 0.1 percent. The 
index for final demand transportation and warehousing services moved down 0.2 percent. Margins 
for final demand trade services were unchanged. (Trade indexes measure changes in margins 
received by wholesalers and retailers.)

Product detail:  Nearly half of the September decline in the index for final demand services can be 
traced to prices for traveler accommodation services, which dropped 6.9 percent. The indexes for 
loan services (partial), fuels and lubricants retailing, airline passenger services, and passenger car 
rental also moved lower. In contrast, margins for machinery and equipment wholesaling advanced 
1.1 percent. The indexes for chemicals and allied products wholesaling, food and alcohol retailing, 
and deposit services (partial) also increased. 

Special grouping, Final demand less foods, energy, and trade:  The index for final demand less 
foods, energy, and trade services edged down 0.1 percent in September following three consecutive 
0.2-percent increases. For the 12 months ended in September, prices for final demand less foods, 
energy, and trade services rose 1.7 percent. (The index for final demand less foods, energy, and trade 
services represents about two-thirds of final demand.)

Special grouping, Finished goods:  Prices for finished goods fell 0.2 percent in September after 
declining 0.3 percent in August. (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 September decrease 
was led by the index for finished consumer energy goods, which dropped 0.9 percent. Prices for 
finished consumer foods moved down 0.6 percent. Conversely, the index for finished goods less 
foods and energy advanced 0.2 percent. Within finished goods, falling prices for gasoline; meats; 
dry, condensed, and evaporated milk products; soft drinks; residential electric power; and jewelry 
products outweighed rising prices for hair preparations, natural cheese (except cottage cheese), and 
residential natural gas.

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 inched up 0.1 percent in September after falling 0.3 percent in August. Leading the advance, 
prices for processed materials less foods and energy increased 0.2 percent. Contributing to a lesser 
extent, the index for processed foods and feeds climbed 0.6 percent. In contrast, prices for processed 
energy goods decreased 0.5 percent. For the 12 months ended in September, the index for processed 
goods for intermediate demand rose 1.3 percent. (See table B.)

Product detail:  In September, a 1.4-percent increase in prices for primary basic organic chemicals 
was a major contributor to the advance in the index for processed goods for intermediate demand. 
Prices for soybean cake and meal, plastic resins and materials, natural cheese (except cottage 
cheese), and jet fuel also moved higher. Conversely, the diesel fuel index declined 1.3 percent in 
September. Prices for gasoline, meats, and inedible fats and oils also decreased. (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

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.

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

Dec.

0.4 0.7 1.2 0.1 0.1 2.2 -0.6 5.3 1.1 -1.9

2014

Jan.

0.7 1.2 1.5 0.4 0.5 0.9 3.6 -1.7 1.8 -0.5

Feb.

0.3 1.0 0.2 0.4 -0.2 5.1 0.6 13.4 -1.2 5.1

Mar.

0.0 1.3 -0.4 -0.2 0.7 -0.2 7.2 -6.4 -0.5 5.3

Apr.

0.0 3.1 -1.5 0.2 1.5 0.8 3.6 -2.5 1.6 6.5

May(1)

0.0 -0.3 0.1 -0.1 1.4 -0.3 -2.5 1.9 -0.3 4.2

June(1)

0.3 -0.3 1.4 0.1 1.5 -0.6 -2.7 1.7 -1.4 3.9

July

0.1 0.4 -0.3 0.3 1.6 -2.7 -0.4 -6.4 0.0 0.9

Aug.

-0.3 -0.8 -1.7 0.2 1.3 -3.3 -3.4 -4.9 -0.7 -0.8

Sept.

0.1 0.6 -0.5 0.2 1.3 0.6 2.4 -1.1 0.5 -0.2

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for May 2014 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 rose 0.6 percent in September following four straight declines. Leading the 
advance, prices for unprocessed foodstuffs and feedstuffs jumped 2.4 percent. The index for 
unprocessed nonfood materials less energy moved up 0.5 percent. In contrast, prices for 
unprocessed energy materials fell 1.1 percent. For the 12 months ended in September, the index 
for unprocessed goods for intermediate demand decreased 0.2 percent. 

Product detail:  An 11.4-percent increase in slaughter poultry prices was a major factor in the 
September advance in the index for unprocessed goods for intermediate demand. Prices for 
slaughter cattle, natural gas, raw milk, carbon steel scrap, and slaughter barrows and gilts also 
moved higher. Conversely, the crude petroleum index decreased 3.9 percent in September. Prices 
for hay, hayseeds, and oilseeds and for nonferrous metal ores also declined.

Services for intermediate demand:  The index for services for intermediate demand was 
unchanged in September following a 0.2-percent advance in August. In September, a 0.2-percent 
rise in the index for trade services for intermediate demand and a 0.1-percent increase in prices 
for transportation and warehousing services for intermediate demand offset a 0.2-percent decline 
in the index for services less trade, transportation, and warehousing for intermediate demand. For 
the 12 months ended in September, the index for services for intermediate demand advanced 1.5 
percent. (See table C.)

Product detail:  In September, margins for chemicals and allied products wholesaling moved up 
3.0 percent. The indexes for securities brokerage, dealing, investment advice, and related 
services; portfolio management; deposit services (partial); and ground courier and messenger 
services also advanced. In contrast, prices for loan services (partial) fell 3.0 percent. The indexes 
for traveler accommodation services, passenger car rental, fuels and lubricants retailing, and 
airline passenger services also decreased. 

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

Sept.

0.1 0.7 0.2 -0.1 1.8

Oct.

0.2 -0.3 0.3 0.2 1.2

Nov.

0.2 0.8 0.0 0.1 0.9

Dec.

-0.2 -0.5 0.5 -0.2 1.0

2014

Jan.

0.3 -0.2 -0.3 0.6 1.1

Feb.

0.2 0.1 0.9 0.0 1.4

Mar.

0.4 0.3 0.2 0.4 1.7

Apr.

-0.2 -1.1 0.3 -0.1 1.0

May(1)

-0.1 1.0 0.3 -0.4 1.5

June(1)

0.4 0.5 0.3 0.4 1.5

July

0.3 0.1 0.5 0.3 1.7

Aug.

0.2 -0.2 0.2 0.3 1.6

Sept.

0.0 0.2 0.1 -0.2 1.5

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for May 2014 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 was unchanged in September after no 
change in the prior month. In September, prices for both total services inputs and total goods 
inputs to stage 4 intermediate demand inched up 0.1 percent. (See table D.) Higher prices for 
securities brokerage, dealing, investment advice, and related services; portfolio management; 
soybean cake and meal; jet fuel; and deposit services (partial) offset declines in the indexes for 
loan services (partial), gasoline, meats, passenger car rental, and corn. (See table 6.) For the 12 
months ended in September, prices for stage 4 intermediate demand advanced 1.5 percent.

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.):  Prices for stage 3 intermediate demand advanced 0.4 percent in 
September after declining 0.7 percent in August. In September, prices for total goods inputs to 
stage 3 intermediate demand increased 0.9 percent. Conversely, the index for total services 
inputs fell 0.2 percent. Higher prices for slaughter poultry, raw milk, slaughter livestock, plastic 
resins and materials, deposit services (partial), and ground courier and messenger services 
outweighed decreases in prices for loan services (partial), gasoline, and passenger car rental. For 
the 12 months ended in September, the index for stage 3 intermediate demand rose 3.2 percent.

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

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.

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.

0.1 0.4 -0.1 0.0 0.2 -0.1 1.4 2.8 -0.3 0.5 0.8 0.0

2014

Jan.

0.3 0.5 0.2 1.1 1.5 0.5 0.3 0.1 0.6 1.2 2.1 0.1

Feb.

0.2 0.1 0.1 0.4 0.6 0.4 3.8 6.3 0.3 0.0 -0.2 0.3

Mar.

0.3 0.2 0.6 1.0 1.6 0.2 -2.0 -3.5 0.0 -0.3 -1.0 0.5

Apr.

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

May(1)

0.0 0.0 0.0 -0.4 -0.8 0.0 0.3 0.6 0.0 -0.3 -0.2 -0.3

June(1)

0.3 0.1 0.4 0.2 0.2 0.2 0.4 0.4 0.3 0.3 0.2 0.5

July

0.2 0.1 0.3 0.6 0.7 0.4 -1.7 -3.1 0.2 0.7 0.7 0.5

Aug.

0.0 -0.2 0.1 -0.7 -1.3 0.2 -1.4 -2.5 0.1 -0.2 -0.4 0.3

Sept.

0.0 0.1 0.1 0.4 0.9 -0.2 -0.3 -0.4 -0.1 0.2 0.1 0.2

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for May 2014 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 fell 0.3 percent in September, 
the third consecutive decrease. In September, prices for total goods inputs to stage 2 intermediate 
demand declined 0.4 percent, and the index for total services inputs inched down 0.1 percent. 
Lower prices for crude petroleum; loan services (partial); corn; hay, hayseeds, and oilseeds; 
traveler accommodation services; and wireless telecommunication services outweighed increases 
in the indexes for natural gas, soybean cake and meal, and chemicals and allied products 
wholesaling. For the 12 months ended in September, prices for stage 2 intermediate demand fell 
2.0 percent, the largest decrease since a 6.2-percent drop in July 2012.

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 moved up 0.2 percent in 
September after a 0.2-percent decline in August. In September, the index for total services inputs 
to stage 1 intermediate demand rose 0.2 percent, and prices for total goods inputs inched up 0.1 
percent. Increases in the indexes for securities brokerage, dealing, investment advice, and related 
services; carbon steel scrap; primary basic organic chemicals; portfolio management; chemicals 
and allied products wholesaling; and soybean cake and meal outweighed decreases in prices for 
traveler accommodation services, gasoline, and industrial electric power. For the 12 months 
ended in September, the index for stage 1 intermediate demand advanced 2.1 percent.
____________
The Producer Price Index for October 2014 is scheduled to be released on Tuesday, 
November 18, 2014 at 8:30 a.m. (EST).


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