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Mar 14, 2018

BUREAU OF LABOR STATISTICS PRESS RELEASE: Final Demand Rises 2 % IN February.

Economic News Release
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Producer Price Index News Release summary

Transmission of material in this release is embargoed until                          USDL 18-0375 
8:30 a.m. (EDT), Wednesday, March 14, 2018

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

                               PRODUCER PRICE INDEXES - FEBRUARY 2018


The Producer Price Index for final demand advanced 0.2 percent in February, seasonally 
adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices rose 0.4 
percent in January and were unchanged in December. (See table A.) On an unadjusted basis, the 
final demand index increased 2.8 percent for the 12 months ended in February. 

In February, the rise in final demand prices is attributable to a 0.3-percent advance in the index 
for final demand services. In contrast, prices for final demand goods edged down 0.1 percent.  

The index for final demand less foods, energy, and trade services climbed 0.4 percent in 
February, the same as in January. For the 12 months ended in February, prices for final demand 
less foods, energy, and trade services increased 2.7 percent, the largest rise since 12-month 
percent change data were available in August 2014.  

Final Demand

Final demand services: Prices for final demand services moved up 0.3 percent in February, the 
same as in January. Most of the February advance can be traced to the index for final demand 
services less trade, transportation, and warehousing, which increased 0.3 percent. Prices for final 
demand transportation and warehousing services also moved higher, rising 0.9 percent. Conversely, 
margins for final demand trade services declined 0.2 percent. (Trade indexes measure changes in 
margins received by wholesalers and retailers.)

Product detail: A major factor in the February advance in prices for final demand services was the 
index for traveler accommodation services, which climbed 3.7 percent. The indexes for automotive 
fuels and lubricants retailing, food retailing, bundled wired telecommunications access services, 
hospital inpatient care, and airline passenger services also moved higher. In contrast, margins for 
machinery, equipment, parts, and supplies wholesaling fell 1.4 percent. The indexes for apparel, 
jewelry, footwear, and accessories retailing and for cable and satellite subscriber services also 
decreased. (See table 4.)

Final demand goods: Prices for final demand goods edged down 0.1 percent in February, the first 
decline since falling 0.5 percent in May 2017. In February, a 0.4-percent decrease in the index for 
final demand foods and a 0.5-percent decline in prices for final demand energy slightly outweighed a 
0.2-percent increase in the index for final demand goods less foods and energy. 

Product detail: Leading the February decrease in the index for final demand goods, prices for fresh 
and dry vegetables dropped 27.1 percent. The indexes for gasoline, light motor trucks, diesel fuel, 
and liquefied petroleum gas also moved lower. Conversely, prices for primary basic organic 
chemicals jumped 7.2 percent. The indexes for chicken eggs, residential natural gas, and beef and 
veal also advanced.

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
2017

Feb.
-0.1 0.1 0.2 0.7 -0.2 0.2 -0.3 -1.1 0.2 0.1 2.0 1.8
Mar.
0.1 0.1 0.1 0.8 -1.4 0.4 0.2 0.6 -1.0 0.1 2.2 1.8
Apr.
0.4 0.5 0.5 1.3 0.0 0.3 0.4 0.4 0.9 0.5 2.5 2.0
May
0.1 0.1 -0.5 -0.8 -2.0 -0.1 0.4 0.8 0.2 0.2 2.3 2.1
June
0.1 0.2 0.0 0.3 -0.1 0.1 0.1 -0.3 0.2 0.2 1.9 2.1
July
0.1 0.1 0.0 0.0 -0.3 0.1 0.1 0.2 -0.4 0.2 2.0 2.0
Aug.
0.3 0.1 0.5 -0.7 3.1 0.2 0.2 0.5 0.2 0.0 2.4 1.9
Sept.
0.3 0.2 0.6 -0.1 2.9 0.2 0.2 -0.2 1.3 0.1 2.6 2.1
Oct.(1)
0.4 0.4 0.3 0.3 0.2 0.3 0.5 0.9 0.7 0.4 2.8 2.4
Nov.(1)
0.4 0.2 0.8 0.5 3.3 0.3 0.2 0.0 0.5 0.2 3.1 2.4
Dec.
0.0 0.1 0.1 -0.4 0.5 0.2 -0.1 -0.4 -0.6 0.2 2.6 2.3
2018

Jan.
0.4 0.4 0.7 -0.2 3.4 0.2 0.3 0.3 0.4 0.4 2.7 2.5
Feb.
0.2 0.4 -0.1 -0.4 -0.5 0.2 0.3 -0.2 0.9 0.3 2.8 2.7
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for October 2017 have been revised to reflect the availability of late reports and corrections by respondents.
Intermediate Demand by Commodity Type

Within intermediate demand in February, prices for processed goods increased 0.7 percent, the index 
for unprocessed goods jumped 2.8 percent, and prices for services advanced 0.5 percent. (See tables 
B and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand climbed 0.7 percent in February, the seventh straight rise. Nearly two-thirds of the broad-
based increase in February can be traced to a 0.7-percent advance in prices for processed materials 
less foods and energy. The indexes for processed energy goods and for processed foods and feeds 
also moved higher, rising 0.8 percent and 1.2 percent, respectively. For the 12 months ended in 
February, the index for processed goods for intermediate demand advanced 4.8 percent.

Product detail: A major factor in the February increase in prices for processed goods for intermediate 
demand was the index for primary basic organic chemicals, which rose 7.2 percent. Prices for utility 
natural gas, prepared animal feeds, industrial electric power, softwood lumber, and residual fuels also 
moved higher. In contrast, the index for diesel fuel fell 4.1 percent. Prices for thermoplastic resins 
and plastics materials and for pork also declined. (See table 5.)

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate 
demand increased 2.8 percent in February, the largest advance since moving up 3.6 percent in 
January 2017. Three-quarters of the February rise can be attributed to the index for unprocessed 
energy materials, which climbed 5.4 percent. The index for unprocessed foodstuffs and feedstuffs 
increased 2.1 percent. Conversely, prices for unprocessed nonfood materials less energy fell 0.3 
percent. For the 12 months ended in February, the index for unprocessed goods for intermediate 
demand climbed 5.6 percent.

Product detail: Leading the February advance in the index for unprocessed goods for intermediate 
demand, natural gas prices jumped 23.5 percent. The indexes for slaughter steers and heifers, grains, 
oilseeds, ungraded chicken eggs, and carbon steel scrap also moved higher. In contrast, prices for 
corrugated wastepaper declined 12.5 percent. The indexes for crude petroleum and raw milk also 
moved lower.

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.)
2017

Feb.
0.5 0.4 0.0 0.7 5.4 -0.1 2.5 -4.0 1.0 19.2
Mar.
0.0 0.3 -2.2 0.4 5.3 -3.7 -1.2 -11.0 2.1 13.4
Apr.
0.5 -0.3 1.3 0.4 5.4 2.0 -0.8 7.7 -0.6 12.8
May
0.0 0.5 -0.2 -0.1 4.6 -1.1 1.4 -4.1 -0.7 8.5
June
0.2 0.7 0.3 0.1 3.8 0.0 0.8 -1.4 0.6 5.8
July
-0.1 -0.2 0.1 -0.1 3.6 0.3 0.6 -0.8 0.8 6.0
Aug.
0.5 -0.3 1.4 0.4 4.1 -0.7 -3.6 1.3 1.3 7.0
Sept.
0.6 -0.8 2.5 0.3 4.5 0.5 -1.0 1.4 1.4 7.7
Oct.(1)
0.6 0.5 1.6 0.4 4.8 0.5 1.2 1.8 -2.6 8.5
Nov.(1)
0.6 0.3 2.0 0.4 5.3 2.3 1.4 5.1 -0.2 10.6
Dec.
0.5 -0.2 0.9 0.4 5.1 1.9 0.1 4.4 1.4 5.2
2018

Jan.
0.7 -0.3 2.5 0.3 4.6 0.9 -0.8 0.5 3.8 2.5
Feb.
0.7 1.2 0.8 0.7 4.8 2.8 2.1 5.4 -0.3 5.6
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for October 2017 have been revised to reflect the availability of late reports and corrections by respondents.
Services for intermediate demand: Prices for services for intermediate demand advanced 0.5 
percent in February, the largest rise since moving up 0.6 percent in October 2017. Over 80 percent of 
the broad-based increase in February can be traced to the index for services less trade, transportation, 
and warehousing for intermediate demand, which climbed 0.5 percent. Prices for transportation and 
warehousing services for intermediate demand and for trade services for intermediate demand 
advanced 0.5 percent and 0.1 percent, respectively. For the 12 months ended in February, the index 
for services for intermediate demand rose 2.9 percent.

Product detail: In February, prices for legal services moved up 1.4 percent. The indexes for portfolio 
management; transportation of freight and mail; management, scientific, and technical consulting 
services; gross rents for retail properties; and chemicals and allied products wholesaling also 
advanced. Conversely, the index for machinery and equipment parts and supplies wholesaling 
declined 1.0 percent. Prices for advertising sales in print and for tax preparation and planning also 
moved lower.

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.)
2017

Feb.
0.3 1.1 0.3 0.2 2.1
Mar.
0.1 0.4 -0.1 0.0 2.0
Apr.
0.5 0.6 0.4 0.4 2.5
May
0.2 0.3 0.2 0.2 2.7
June
0.3 0.0 0.1 0.5 2.8
July
0.1 0.1 0.0 0.1 2.2
Aug.
0.2 0.3 0.2 0.2 2.8
Sept.
0.2 -0.3 0.7 0.1 2.8
Oct.(1)
0.6 1.0 0.6 0.6 3.3
Nov.(1)
0.3 0.3 0.3 0.2 3.2
Dec.
0.0 0.0 -0.1 0.1 2.9
2018

Jan.
0.1 -0.3 0.3 0.1 2.9
Feb.
0.5 0.1 0.5 0.5 2.9
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for October 2017 have been revised to reflect the availability of late reports and corrections by respondents.
Intermediate Demand by Production Flow

Stage 4 intermediate demand: Prices for stage 4 intermediate demand advanced 0.3 percent in 
February, the same rate as in January. In February, the index for total services inputs to stage 4 
intermediate demand rose 0.4 percent, and prices for total goods inputs moved up 0.2 percent. (See 
table D.) Increases in the indexes for portfolio management, legal services, gross rents for retail 
properties, chemicals and allied products wholesaling, engineering services, and primary basic 
organic chemicals outweighed declines in the indexes for machinery and equipment parts and 
supplies wholesaling; diesel fuel; and natural, processed, and imitation cheese. (See table 6.) For the 
12 months ended in February, prices for stage 4 intermediate demand moved up 3.0 percent.

Stage 3 intermediate demand: The index for stage 3 intermediate demand rose 0.7 percent in 
February, the seventh straight advance. In February, prices for total goods inputs to stage 3 
intermediate demand moved up 1.0 percent, and the index for total services inputs climbed 0.3 
percent. Increases in the indexes for slaughter steers and heifers, primary basic organic chemicals, 
ungraded chicken eggs, jet fuel, slaughter barrows and gilts, and chemical and allied products 
wholesaling outweighed decreases in the indexes for raw milk, gasoline, and machinery and 
equipment parts and supplies wholesaling. For the 12 months ended in February, prices for stage 3 
intermediate demand climbed 4.2 percent.

Stage 2 intermediate demand: The index for stage 2 intermediate demand increased 1.3 percent in 
February, the largest rise since a 1.4-percent advance in April 2017. In February, prices for total 
goods inputs to stage 2 intermediate demand moved up 2.4 percent, and the index for total services 
inputs climbed 0.5 percent. Higher prices for natural gas, prepared animal feeds, oilseeds, legal 
services, portfolio management, and transportation of freight and mail outweighed declines in the 
indexes for crude petroleum, thermoplastic resins and plastics materials, and tax preparation and 
planning. For the 12 months ended in February, prices for stage 2 intermediate demand rose 4.6 
percent.

Stage 1 intermediate demand: Prices for stage 1 intermediate demand advanced 0.5 percent in 
February, the ninth straight rise. In February, the indexes for both total goods and total services 
inputs to stage 1 intermediate demand climbed 0.5 percent. Increases in the indexes for primary basic 
organic chemicals, natural gas, carbon steel scrap, chemicals and allied products wholesaling, 
traveler accommodation services, and prepared animal feeds outweighed lower prices for diesel fuel, 
corrugated wastepaper, and wireless telecommunication services. For the 12 months ended in 
February, prices for stage 1 intermediate demand moved up 5.5 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
2017

Feb.
0.4 0.4 0.5 0.6 1.0 0.4 0.0 -0.3 0.2 0.6 0.8 0.3
Mar.
0.1 0.2 0.0 0.1 -0.1 0.3 -1.6 -3.5 0.1 0.2 0.5 -0.1
Apr.
0.5 0.4 0.7 -0.1 -0.4 0.4 1.4 2.6 0.4 0.3 0.0 0.6
May
0.1 0.0 0.1 0.1 -0.1 0.2 -0.4 -1.1 0.2 0.0 -0.2 0.2
June
0.3 0.3 0.3 0.4 0.4 0.4 0.0 -0.6 0.4 0.2 0.0 0.4
July
0.0 0.0 0.0 -0.1 -0.4 0.2 0.1 0.2 0.0 0.2 0.3 0.1
Aug.
0.3 0.3 0.3 0.4 0.5 0.2 0.2 0.5 0.0 0.7 1.1 0.2
Sept.
0.2 0.3 0.2 0.4 0.7 0.2 0.6 1.3 0.2 0.6 1.0 0.2
Oct.(1)
0.5 0.4 0.7 0.8 0.8 0.7 0.7 0.8 0.5 0.5 0.3 0.9
Nov.(1)
0.4 0.6 0.3 0.8 1.4 0.2 0.9 1.7 0.3 0.7 1.1 0.2
Dec.
0.0 0.1 -0.1 0.4 0.9 0.1 0.8 1.7 0.1 0.6 1.2 -0.2
2018

Jan.
0.3 0.7 0.0 0.4 0.8 0.0 0.5 0.5 0.3 0.9 1.7 -0.2
Feb.
0.3 0.2 0.4 0.7 1.0 0.3 1.3 2.4 0.5 0.5 0.5 0.5
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for October 2017 have been revised to reflect the availability of late reports and corrections by respondents.
________________
The Producer Price Index for March 2018 is scheduled to be released on Tuesday, April 10, 
2018 at 8:30 a.m. (EDT).