Economic News Release

Producer Price Index News Release text

Transmission of material in this release is embargoed until                          USDL-15-0607
8:30 a.m. (EDT), Tuesday, April 14, 2015

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 2015


The Producer Price Index for final demand increased 0.2 percent in March, seasonally adjusted, 
the U.S. Bureau of Labor Statistics reported today. Final demand prices moved down 0.5 percent 
in February and 0.8 percent in January. On an unadjusted basis, the index for final demand 
decreased 0.8 percent for the 12 months ended in March. (See table A.)

In March, more than half of the rise in final demand prices can be attributed to a 0.3-percent 
advance in the index for final demand goods. Prices for final demand services moved up 0.1 
percent.

Within intermediate demand, prices for processed goods edged down 0.1 percent, the index for 
unprocessed goods dropped 1.7 percent, and prices for services rose 0.2 percent. (See tables B 
and C.)

Final Demand

Final demand goods:  The index for final demand goods moved up 0.3 percent in March following 
eight consecutive decreases. A major factor in the advance was prices for final demand energy, 
which rose 1.5 percent. The index for final demand goods less foods and energy increased 0.2 
percent in March. In contrast, prices for final demand foods fell 0.8 percent.

Product detail:  Leading the March advance in prices for final demand goods, the index for gasoline 
jumped 7.2 percent. Prices for motor vehicles, jet fuel, pharmaceutical preparations, basic organic 
chemicals, and beef and veal also moved higher. Conversely, the index for pork declined 5.1 percent. 
Prices for utility natural gas and for plastic resins and materials also fell. (See table 4.)

Final demand services:  The index for final demand services inched up 0.1 percent in March 
following a 0.5-percent decrease in February. The advance can be traced to prices for final demand 
services less trade, transportation, and warehousing, which rose 0.3 percent. In contrast, the indexes 
for final demand transportation and warehousing services and for final demand trade services both 
declined 0.2 percent in March. (Trade indexes measure changes in margins received by wholesalers 
and retailers.)

Product detail:  Over 60 percent of the March increase in the index for final demand services can be 
attributed to prices for portfolio management, which jumped 4.1 percent. The indexes for loan 
services (partial), food wholesaling, wireless telecommunication services, and gaming receipts 
(partial) also moved higher. Conversely, margins for machinery, equipment, parts, and supplies 
wholesaling decreased 0.7 percent. The indexes for apparel, jewelry, footwear, and accessories 
retailing; physician care; and rail transportation of freight and mail also declined. 

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

2014

Mar.

0.3 0.3 1.2 0.4 0.0 0.5 0.6 0.5 0.2 1.6

Apr.

0.1 0.3 1.8 -0.5 0.2 -0.1 -0.5 0.5 0.1 1.8

May

0.3 0.1 -0.1 0.4 0.1 0.4 1.1 0.3 -0.1 2.1

June

0.1 0.3 0.1 0.7 0.1 -0.1 -0.5 0.4 0.3 1.8

July

0.3 -0.1 -0.2 -0.8 0.2 0.6 1.6 0.2 0.1 1.9

Aug.

-0.1 -0.3 -0.2 -1.0 0.0 -0.1 -0.6 0.2 0.3 1.9

Sept.

-0.2 -0.1 -0.1 -0.9 0.2 -0.3 -0.8 -0.2 0.0 1.6

Oct.

0.3 -0.4 0.6 -2.6 -0.1 0.6 2.0 -0.4 0.0 1.5

Nov.(1)

-0.3 -0.8 0.1 -3.7 -0.1 0.0 -0.4 0.3 0.1 1.3

Dec.(1)

-0.2 -1.1 0.0 -6.2 0.2 0.4 0.7 -0.3 0.2 1.1

2015

Jan.

-0.8 -2.1 -1.1 -10.3 -0.2 -0.2 0.5 -0.8 -0.4 0.0

Feb.

-0.5 -0.4 -1.6 0.0 -0.1 -0.5 -1.5 -1.5 0.3 -0.6

Mar.

0.2 0.3 -0.8 1.5 0.2 0.1 -0.2 -0.2 0.3 -0.8

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for November 2014 have been revised to reflect the availability of late reports and corrections by respondents.

Special grouping, Final demand less foods, energy, and trade:  The index for final demand less 
foods, energy, and trade services advanced 0.2 percent in March after no change in February. For the 
12 months ended in March, prices for final demand less foods, energy, and trade services rose 0.8 
percent.

Intermediate Demand by Commodity Type

Processed goods for intermediate demand:  The index for processed goods for intermediate 
demand edged down 0.1 percent in March, the eighth consecutive decline. Leading the March 
decrease, prices for processed materials less foods and energy moved down 0.2 percent. The index 
for processed foods and feeds fell 0.8 percent. In contrast, prices for processed energy goods rose 0.5 
percent. For the 12 months ended in March, the index for processed goods for intermediate demand 
dropped 6.7 percent, the largest 12-month decrease since a 7.7-percent decline in October 2009. (See 
table B.)

Product detail:  In March, a 4.0-percent decrease in prices for plastic resins and materials accounted 
for three-quarters of the decline in the index for processed goods for intermediate demand. The 
indexes for electric power, steel mill products, utility natural gas, and prepared animal feeds also 
moved lower. Conversely, prices for gasoline advanced 7.2 percent. The indexes for basic organic 
chemicals, jet fuel, and beef and veal also increased. (See table 5.)

Unprocessed goods for intermediate demand:  The index for unprocessed goods for intermediate 
demand fell 1.7 percent in March, the sixth straight decrease. Leading the broad-based decline in 
March, prices for unprocessed foodstuffs and feedstuffs moved down 1.4 percent. The indexes for 
unprocessed nonfood materials less energy and for unprocessed energy materials fell 2.3 percent and 
1.4 percent, respectively. For the 12 months ended in March, the index for unprocessed goods for 
intermediate demand decreased 26.5 percent, the largest 12-month decline since a 31.7-percent drop 
in September 2009.

Product detail:  A major factor in the March decline in the index for unprocessed goods for 
intermediate demand was prices for hay, hayseeds, and oilseeds, which fell 4.2 percent. The indexes 
for crude petroleum, iron and steel scrap, corn, raw milk, and unprocessed finfish also decreased. In 
contrast, the index for slaughter poultry moved up 3.4 percent. Prices for natural gas and copper ores 
also moved higher. 

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.)

2014

Mar.

0.0 0.7 0.6 -0.2 0.7 0.4 5.3 -3.6 -0.5 5.3

Apr.

0.0 2.3 -1.7 0.2 1.5 1.1 2.9 -1.0 1.4 6.5

May

0.1 0.0 0.8 -0.1 1.4 -1.1 -1.9 -0.8 -0.3 4.2

June

0.1 0.4 0.4 0.1 1.5 -1.1 -2.1 0.1 -1.6 3.7

July

0.1 -0.7 -0.4 0.4 1.6 -1.7 -0.9 -3.5 0.3 0.9

Aug.

-0.1 -0.3 -1.0 0.2 1.4 -3.0 -2.1 -5.3 -0.8 -0.5

Sept.

-0.2 0.8 -1.1 -0.1 1.1 0.1 2.3 -1.9 0.1 -0.2

Oct.

-1.0 -1.7 -2.8 -0.3 0.2 -3.3 0.0 -7.0 -2.5 -2.1

Nov.(1)

-1.0 0.0 -3.6 -0.5 -0.6 -1.3 1.7 -4.3 -1.6 -1.6

Dec.(1)

-1.4 -0.2 -5.6 -0.3 -2.2 -4.6 -5.5 -5.6 -0.4 -8.1

2015

Jan.

-2.8 -2.5 -8.3 -1.3 -5.5 -9.4 -1.8 -23.6 -0.7 -18.4

Feb.

-0.6 -1.9 -0.6 -0.4 -6.4 -3.9 -6.7 0.9 -5.2 -25.0

Mar.

-0.1 -0.8 0.5 -0.2 -6.7 -1.7 -1.4 -1.4 -2.3 -26.5

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for November 2014 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 advanced 0.2 
percent in March following a 0.1-percent rise in February. Leading the March increase, prices for 
services less trade, transportation, and warehousing for intermediate demand climbed 0.4 percent. 
The index for trade services for intermediate demand rose 0.2 percent. Conversely, prices for 
transportation and warehousing services for intermediate demand fell 0.4 percent. For the 12 months 
ended in March, the index for services for intermediate demand advanced 1.0 percent, the smallest 
12-month increase since a 1.0-percent rise in April 2014. (See table C.)

Product detail:  In March, a 2.3-percent advance in the index for loan services (partial) was a major 
factor in the rise in prices for services for intermediate demand. The indexes for portfolio 
management; food wholesaling; securities brokerage, dealing, and investment advice; gross rents for 
office buildings; and wireless telecommunication services also moved higher. In contrast, prices for 
courier, messenger, and U.S. postal services fell 0.5 percent. The indexes for building materials, 
paint, and hardware wholesaling and for deposit services (partial) also decreased.
Intermediate Demand by Production Flow

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.)

2014

Mar.

0.4 0.5 0.2 0.4 1.7

Apr.

-0.2 -1.2 0.3 -0.1 1.0

May

0.0 1.0 0.3 -0.3 1.5

June

0.1 -0.4 0.3 0.2 1.3

July

0.6 1.4 0.3 0.5 1.9

Aug.

0.0 -0.3 0.2 0.0 1.7

Sept.

-0.1 0.3 -0.1 -0.2 1.5

Oct.

0.4 1.4 -0.2 0.3 1.8

Nov.(1)

0.0 -0.4 0.1 0.1 1.5

Dec.(1)

0.1 -0.5 0.0 0.3 1.7

2015

Jan.

-0.2 0.7 -0.3 -0.4 1.3

Feb.

0.1 0.1 -0.8 0.2 1.2

Mar.

0.2 0.2 -0.4 0.4 1.0

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for November 2014 have been revised to reflect the availability of late reports and corrections by respondents.

Stage 4 intermediate demand:  The index for stage 4 intermediate demand edged up 0.1 percent in 
March following four consecutive declines. In March, prices for total services inputs to stage 4 
intermediate demand rose 0.5 percent. Conversely, the index for total goods inputs decreased 0.2 
percent. (See table D.) Increases in the indexes for portfolio management, gasoline, diesel fuel, food 
wholesaling, and gross rents for office buildings outweighed declines in the indexes for electric 
power; building materials, paint, and hardware wholesaling; unprocessed finfish; and plastic 
packaging 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:  Prices for stage 3 intermediate demand moved up 0.2 percent in 
March following five straight decreases. In March, the index for total goods inputs to stage 3 
intermediate demand climbed 0.3 percent while prices for total services inputs were unchanged. 
Increases in the indexes for gasoline, jet fuel, slaughter poultry, basic organic chemicals, loan 
services (partial), and food wholesaling outweighed declines in prices for raw milk; slaughter hogs; 
and courier, messenger, and U.S. postal services. For the 12 months ended in March, prices for stage 
3 intermediate demand moved down 5.6 percent.

Stage 2 intermediate demand:  The index for stage 2 intermediate demand decreased 0.5 percent in 
March following a 0.2-percent decline in February. In March, prices for total goods inputs to stage 2 
intermediate demand fell 1.5 percent. In contrast, the index for total services inputs moved up 0.2 
percent. Lower prices for crude petroleum; plastic resins and materials; steel mill products; hay, 
hayseeds, and oilseeds; prepared animal feeds; and courier, messenger, and U.S. postal services 
outweighed higher prices for portfolio management, natural gas, and basic organic chemicals. For the 
12 months ended in March, the index for stage 2 intermediate demand dropped 13.7 percent.

Stage 1 intermediate demand:  Prices for stage 1 intermediate demand fell 0.2 percent in March, 
the seventh straight decline. In March, the index for total goods inputs to stage 1 intermediate 
demand decreased 0.4 percent. Conversely, prices for total services inputs moved up 0.2 percent. 
Decreases in the indexes for iron and steel scrap; nonferrous scrap; electric power; building 
materials, paint, and hardware wholesaling; corn; and utility natural gas outweighed advances in 
prices for loan services (partial), basic organic chemicals, and diesel fuel. For the 12 months ended in 
March, prices for stage 1 intermediate demand decreased 7.5 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

2014

Mar.

0.5 0.4 0.6 0.9 1.5 0.3 -1.2 -2.1 0.0 -0.3 -0.8 0.5

Apr.

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

May

0.1 0.2 -0.1 -0.2 -0.5 0.0 -0.3 -0.4 0.0 -0.2 -0.2 -0.2

June

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

July

0.3 0.0 0.6 0.5 0.5 0.4 -0.9 -1.9 0.6 0.9 0.7 0.9

Aug.

0.0 -0.1 0.0 -0.3 -0.7 0.2 -1.6 -2.7 -0.1 0.0 0.1 0.0

Sept.

-0.1 -0.1 0.0 0.3 0.7 -0.2 -0.6 -1.0 -0.1 -0.4 -0.8 0.1

Oct.

0.0 -0.5 0.4 -0.3 -0.8 0.2 -2.3 -4.5 0.6 -0.9 -1.8 0.4

Nov.(1)

-0.3 -0.5 0.0 -0.3 -0.8 0.2 -1.3 -2.3 -0.1 -1.5 -2.4 -0.3

Dec.(1)

-0.4 -0.9 0.2 -1.8 -3.1 -0.1 -1.7 -3.2 0.0 -1.0 -2.2 0.8

2015

Jan.

-0.7 -1.3 0.0 -2.4 -4.2 -0.1 -5.0 -9.8 -0.5 -3.3 -5.7 0.0

Feb.

-0.1 -0.4 0.2 -1.4 -2.7 0.1 -0.2 -0.6 0.2 -1.4 -2.2 -0.3

Mar.

0.1 -0.2 0.5 0.2 0.3 0.0 -0.5 -1.5 0.2 -0.2 -0.4 0.2

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for November 2014 have been revised to reflect the availability of late reports and corrections by respondents.

_____________
The Producer Price Index for April 2015 is scheduled to be released on Thursday, May 14, 
2015 at 8:30 a.m. (EDT).

                                               *****
 
                                  PPI to Update Samples More Frequently

The Producer Price Index (PPI) periodically updates the sample of producers providing index 
data in order to reflect current conditions more accurately when the structure, membership, 
technology, or product mix of an industry shifts. Since 1986, these sample changes have been 
updated at semi-annual intervals, with the release of data for January and July. Effective with the 
release of PPI data for June 2015 on July 15, 2015, PPI will update samples on a tri-annual basis, 
coinciding with the release of data for February, June, and October (in March, July, and 
November, respectively). This accelerated approach to replacing industry samples will result in 
indexes that better represent current industry production and will improve data quality.

With each sample update, PPI will continue to publish a notice listing the impacted industries in 
both the PPI News Release and PPI Detailed Report. In addition, PPI will continue to publish 
information on specific index additions, deletions, and recodes associated with the updated 
samples in the PPI Detailed Report. 

For further information, contact the PPI Section of Index Analysis and Public Information, at 
ppi-info@bls.gov or (202) 691-7705.

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