Producer Price Index Increased .4 Percent in September 2022 - Index For Final Demand Advanced 8.5 Percent For The 12 Months Ended In September

Details: Last Updated: Wednesday, 12 October 2022 06:11; Published: Wednesday, 12 October 2022 06:06

PRODUCER PRICE INDEXES - SEPTEMBER 2022

Full Report

October 12, 2022 - The Producer Price Index for final demand increased 0.4 percent in September, seasonally
adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices declined 0.2
percent in August and 0.4 percent in July. (See table A.) On an unadjusted basis, the index for
final demand advanced 8.5 percent for the 12 months ended in September.

In September, two-thirds of the increase in the index for final demand can be traced to a 0.4-
percent rise in prices for final demand services. The index for final demand goods also advanced
0.4 percent.

Prices for final demand less foods, energy, and trade services advanced 0.4 percent in September,
the largest rise since increasing 0.5 percent in May. For the 12 months ended in September, the
index for final demand less foods, energy, and trade services moved up 5.6 percent.

Final Demand

Final demand services: Prices for final demand services advanced 0.4 percent in September after
climbing 0.3 percent in August. Most of the September increase is attributable to a 0.6-percent rise in
the index for final demand services less trade, transportation, and warehousing. Margins for final
demand trade services edged up 0.1 percent. (Trade indexes measure changes in margins received by
wholesalers and retailers.) Conversely, prices for final demand transportation and warehousing
services fell 0.2 percent.

Product detail: Over a quarter of the September increase in the index for final demand services can
be traced to a 6.4-percent advance in prices for traveler accommodation services. The indexes for
food and alcohol retailing, portfolio management, machinery and vehicle wholesaling, oil and gas
well drilling services, and hospital inpatient care also rose. In contrast, prices for long-distance motor
carrying fell 0.4 percent. The indexes for fuels and lubricants retailing and for consumer loans
(partial) also decreased. (See table 2.)

Final demand goods: Prices for final demand goods moved up 0.4 percent in September after
decreasing 1.1 percent in August. Sixty percent of the advance is attributable to a 1.2-percent
increase in the index for final demand foods. Prices for final demand energy rose 0.7 percent. The
index for final demand goods less foods and energy was unchanged.

Product detail: A major factor in the September increase in prices for final demand goods was a
15.7-percent advance in the index for fresh and dry vegetables. Prices for diesel fuel, residential
natural gas, chicken eggs, home heating oil, and pork also moved higher. Conversely, the index for
gasoline fell 2.0 percent. Prices for prepared poultry and for steel mill products also declined.

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.)
Month	Total final demand	Final demand less foods, energy, and trade	Total	Foods	Energy	Less foods and energy	Total	Trade	Transportation and warehousing	Other	Change in final demand from 12 months ago (unadj.)
2021
Sept.	0.5	0.3	1.2	2.1	2.5	0.6	0.1	0.0	-1.0	0.3	8.8	6.1
Oct.	0.7	0.4	1.3	-0.1	5.0	0.7	0.2	0.5	1.1	-0.1	8.9	6.2
Nov.	1.0	0.8	0.9	1.3	0.9	0.8	1.0	1.3	2.8	0.6	9.9	7.0
Dec.	0.6	0.4	-0.1	-0.2	-1.4	0.4	0.9	1.9	1.6	0.3	10.0	7.0
2022
Jan.	1.2	0.8	1.6	1.8	4.1	0.8	0.9	1.3	0.0	0.8	10.1	6.9
Feb.	1.1	0.2	2.2	1.9	7.2	0.8	0.5	1.7	2.0	-0.3	10.4	6.7
Mar.	1.7	1.0	2.4	2.4	6.6	1.1	1.3	2.3	5.6	0.4	11.7	7.1
Apr.	0.5	0.4	1.3	1.5	1.5	1.1	0.0	0.1	2.1	-0.2	11.2	6.8
May(1)	0.8	0.5	1.5	0.4	4.8	0.7	0.4	0.6	2.5	0.1	11.1	6.8
June(1)	1.0	0.3	2.2	-0.1	8.9	0.5	0.4	0.8	0.8	0.2	11.3	6.4
July(1)	-0.4	0.1	-1.8	1.3	-9.1	0.2	0.2	0.8	-0.7	0.0	9.8	5.8
Aug.(1)	-0.2	0.2	-1.1	-0.1	-5.6	0.2	0.3	0.5	-0.9	0.4	8.7	5.6
Sept.	0.4	0.4	0.4	1.2	0.7	0.0	0.4	0.1	-0.2	0.6	8.5	5.6
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for May 2022 through August 2022 have been revised to reflect the availability of late reports and corrections by respondents.

Intermediate Demand by Commodity Type

Within intermediate demand in September, prices for processed goods edged up 0.1 percent, the
index for unprocessed goods rose 0.3 percent, and prices for services advanced 0.3 percent. (See
tables B and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate
demand rose 0.1 percent in September after decreasing 1.5 percent in August. The increase can be
traced to a 2.6-percent advance in prices for processed energy goods. In contrast, the indexes for
processed materials less foods and energy and for processed foods and feeds moved lower, 0.6
percent and 0.5 percent, respectively. For the 12 months ended in September, prices for processed
goods for intermediate demand increased 13.1 percent.

Product detail: Leading the September rise in the index for processed goods for intermediate
demand, prices for diesel fuel advanced 9.1 percent. The indexes for electric power, jet fuel, pork,
and ready-mix concrete also increased. Conversely, prices for steel mill products fell 6.7 percent. The
indexes for primary basic organic chemicals, liquefied petroleum gas, and prepared poultry also
declined.

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate
demand rose 0.3 percent in September following a 5.3-percent advance in August. Leading the
broad-based increase in September, prices for unprocessed energy materials moved up 0.5 percent.
The indexes for unprocessed nonfood materials less energy and for unprocessed foodstuffs and
feedstuffs also rose, 0.6 percent and 0.1 percent, respectively. For the 12 months ended in September,
prices for unprocessed goods for intermediate demand advanced 34.2 percent.

Product detail: Leading the September rise in prices for unprocessed goods for intermediate demand,
the index for natural gas increased 3.1 percent. Prices for corn; hay, hayseeds, and oilseeds; wheat;
fresh vegetables, except potatoes; and construction sand, gravel, and crushed stone also moved
higher. In contrast, the crude petroleum index fell 3.4 percent. Prices for raw milk and for recyclable
paper also declined.

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
Month	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.)
2021
Sept.	1.2	1.5	2.1	0.9	23.8	2.8	0.8	8.0	-1.8	48.5
Oct.	2.4	-0.4	6.7	1.6	25.7	6.0	-2.2	17.7	-1.5	55.5
Nov.	1.5	0.1	2.5	1.4	26.6	2.3	1.3	2.3	3.4	49.6
Dec.	-0.1	0.1	-2.7	0.6	24.4	-4.8	3.8	-12.1	-1.8	40.0
2022
Jan.	2.2	2.6	4.7	1.5	24.8	3.1	2.9	4.2	1.1	36.4
Feb.	1.5	2.1	5.8	0.4	23.3	9.8	5.4	18.2	1.5	33.5
Mar.	2.3	2.1	7.3	0.9	22.1	2.9	7.7	-4.3	9.7	43.3
Apr.	2.0	3.2	4.4	1.2	22.0	5.5	4.2	9.3	1.3	50.1
May(1)	2.3	1.1	4.5	1.8	21.6	5.4	0.2	14.6	-4.2	46.4
June(1)	2.0	0.0	8.8	0.0	21.9	4.7	-0.3	11.0	-2.0	50.1
July(1)	-2.2	0.2	-8.8	-0.2	17.3	-9.4	-1.7	-14.6	-7.2	32.1
Aug.(1)	-1.5	0.0	-4.6	-0.7	14.3	5.3	-1.3	12.1	0.7	37.4
Sept.	0.1	-0.5	2.6	-0.6	13.1	0.3	0.1	0.5	0.6	34.2
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for May 2022 through August 2022 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 increased 0.3 
percent in September, the third consecutive rise. Leading the September advance, prices for services 
less trade, transportation, and warehousing for intermediate demand climbed 0.5 percent. Margins for 
trade services for intermediate demand moved up 0.3 percent. Conversely, the index for 
transportation and warehousing services for intermediate demand declined 0.7 percent. For the 12 
months ended in September, prices for services for intermediate demand increased 6.2 percent.

Product detail: In September, a 5.6-percent rise in the index for investment banking was a major 
factor in the advance in prices for services for intermediate demand. The indexes for paper and 
plastics products wholesaling, gross rents for retail properties, portfolio management, traveler 
accommodation services, and pipeline transportation of natural gas also moved higher. In contrast, 
prices for arrangement of freight and cargo transportation fell 12.7 percent. The indexes for metals, 
minerals, and ores wholesaling and for securities brokerage, dealing, investment advice, and related 
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
Month	Total	Trade	Transportation and warehousing	Other	Total, change from 12 months ago (unadj.)
2021
Sept.	0.3	-1.2	2.5	0.4	8.2
Oct.	0.0	0.6	0.5	-0.3	7.4
Nov.	0.6	-0.6	1.0	0.9	8.1
Dec.	0.8	1.5	1.6	0.5	8.3
2022
Jan.	0.8	1.4	0.6	0.6	7.9
Feb.	0.2	1.4	0.4	-0.2	7.8
Mar.	1.3	4.4	2.1	0.0	8.4
Apr.	0.9	1.0	1.7	0.6	8.0
May(1)	0.5	0.6	0.6	0.4	7.9
June(1)	-0.4	-0.8	0.1	-0.3	6.2
July(1)	0.3	-0.1	1.0	0.3	5.9
Aug.(1)	0.8	-0.6	-0.2	1.5	6.2
Sept.	0.3	0.3	-0.7	0.5	6.2
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for May 2022 through August 2022 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 rose 0.3 percent in
September following a 0.4-percent advance in August. In September, the index for total services
inputs to stage 4 intermediate demand moved up 0.5 percent. Prices for total goods inputs were
unchanged. (See table D.) Increases in the indexes for paper and plastics products wholesaling, corn,
diesel fuel, portfolio management, gross rents for retail properties, and investment banking
outweighed declines in the indexes for steel mill products; securities brokerage, dealing, investment
advice, and related services; and metals, minerals, and ores wholesaling. For the 12 months ended in
September, prices for stage 4 intermediate demand rose 8.4 percent.

Stage 3 intermediate demand: Prices for stage 3 intermediate demand inched down 0.1 percent in
September, the third consecutive decline. In September, the index for total goods inputs to stage 3
intermediate demand fell 0.2 percent. Prices for total services inputs were unchanged. Decreases in
the indexes for steel mill products; raw milk; arrangement of freight and cargo transportation;
slaughter hogs; and metals, minerals, and ores wholesaling outweighed increases in the indexes for
diesel fuel, corn, paper and plastics products wholesaling, and jet fuel. For the 12 months ended in
September, prices for stage 3 intermediate demand advanced 10.8 percent.

Stage 2 intermediate demand: Prices for stage 2 intermediate demand edged down 0.1 percent in
September following a 3.5-percent rise in August. In September, the index for total goods inputs to
stage 2 intermediate demand declined 0.1 percent. Prices for total services inputs were unchanged.
Decreases in the indexes for crude petroleum, arrangement of freight and cargo transportation,
liquefied petroleum gas, fuels and lubricants retailing, and steel mill products outweighed increasing
prices for natural gas, oilseeds, deposit services (partial), and traveler accommodation services. For
the 12 months ended in September, the index for stage 2 intermediate demand jumped 18.6 percent.

Stage 1 intermediate demand: Prices for stage 1 intermediate demand rose 0.5 percent in
September after falling 0.5 percent in August. In September, the index for total goods inputs to stage
1 intermediate demand advanced 0.6 percent, and prices for total services inputs moved up 0.4
percent. Increases in the indexes for diesel fuel, corn, traveler accommodation services, investment
banking, paper and plastics products wholesaling, and gross rents for retail properties outweighed
declines in the indexes for steel mill products; metals, minerals, and ores wholesaling; and securities
brokerage, dealing, investment advice, and related services. For the 12 months ended in September,
prices for stage 1 intermediate demand rose 10.8 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
Month	Total	Goods inputs	Services inputs	Total	Goods inputs	Services inputs	Total	Goods inputs	Services inputs	Total	Goods inputs	Services inputs
2021
Sept.	0.4	0.8	0.1	1.1	1.2	1.0	2.2	3.6	0.9	0.2	0.7	-0.3
Oct.	0.6	1.3	0.0	1.0	1.9	0.2	3.7	7.9	-0.1	1.1	2.5	-0.3
Nov.	1.1	1.5	0.7	0.8	1.2	0.4	1.2	1.7	0.7	1.3	2.0	0.5
Dec.	0.7	0.5	0.8	0.8	0.7	0.9	-2.2	-5.6	1.2	0.4	0.0	0.8
2022
Jan.	1.5	2.1	1.0	1.6	2.6	0.7	1.4	2.7	0.1	1.4	1.8	1.0
Feb.	0.6	1.2	0.0	1.4	2.6	0.1	4.3	8.4	0.3	1.0	1.6	0.2
Mar.	1.2	1.6	0.8	3.1	4.5	1.6	0.8	0.3	1.3	2.8	3.3	2.2
Apr.	1.0	1.2	0.7	2.5	3.7	1.3	2.8	4.7	0.7	1.7	2.4	0.9
May(1)	0.9	1.4	0.4	1.7	2.6	0.6	3.6	6.8	0.3	1.5	2.3	0.7
June(1)	0.3	1.1	-0.4	0.5	1.4	-0.5	2.9	5.4	0.0	1.0	2.4	-0.7
July(1)	-0.4	-0.9	0.0	-1.4	-2.9	0.4	-4.3	-8.6	1.0	-1.8	-3.0	-0.3
Aug.(1)	0.4	-0.1	0.9	-1.6	-3.2	0.2	3.5	5.4	1.5	-0.5	-1.5	0.7
Sept.	0.3	0.0	0.5	-0.1	-0.2	0.0	-0.1	-0.1	0.0	0.5	0.6	0.4
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for May 2022 through August 2022 have been revised to reflect the availability of late reports and corrections by respondents.

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Producer Price Index Increased .4 Percent in September 2022 - Index For Final Demand Advanced 8.5 Percent For The 12 Months Ended In September

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