Producer Price Index News Release text
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http://stats.bls.gov/ppihome.htm JANUARY 12, 2001
Producer Price Indexes -- December 2000
The Producer Price Index for Finished Goods showed no change in
December, seasonally adjusted, the Bureau of Labor Statistics of the U.S.
Department of Labor reported today. This followed a 0.1-percent increase
in November and a 0.4-percent advance in October. The index for finished
goods other than foods and energy rose 0.3 percent in December, after
showing no change in the previous month. Prices received by producers of
intermediate goods gained 0.2 percent, following a similar decline in the
prior month. The crude goods index jumped 8.7 percent, after posting a 2.0-
percent decrease in November. (See table A.)
Table A. Monthly and annual percent changes in selected stage-of-processing price
indexes, seasonally adjusted
______________________________________________________________________________________
| | | | |
| | Finished goods | | |
| | | | |
| |---------------------------------------------------------| | |
| | | | | | Change in | | |
| | | | | Except |finished goods| Inter- | |
| | | | |foods and|from 12 months| mediate | Crude |
| Month | Total | Foods | Energy | energy | ago(unadj.) | goods | goods |
|--------------------------------------------------------------------------------------|
1999
Dec. 0.1 0.0 0.7 0.1 2.9 0.3 -4.9
2000
Jan. .1 .2 .9 -.2 2.5 .5 2.6
Feb. 1.1 .5 5.3 .3 4.0 .9 3.9
Mar. .7 .1 4.4 .1 4.3 .9 2.2
Apr. -.4 1.1 -3.9 .1 3.6 -.1 -1.5
May .1 -.2 -.2 .3 3.7 -.1 3.0
June .9 -.2 6.4 0 4.4 .9 8.4
July .1 -.1 -.2 .1 4.3 .4 -2.4
Aug. -.4 r -.7 r -1.8 r .2 r 3.4 -.4 r -3.7
Sept. r .8 r .2 r 4.2 r .2 3.3 .7 r 6.1
Oct. .4 .8 1.4 -.1 3.6 .2 3.4
Nov. .1 .2 .4 0 3.7 -.2 -2.0
Dec. 0 -.4 -.7 .3 3.6 .2 8.7
r=revised. Some of the figures shown above and elsewhere in this release may differ
from those previously reported because data for August 2000 have been revised to
reflect the availability of late reports and corrections by respondents.
-2-
Among finished goods in December, the index for consumer goods other
than foods and energy rose 0.3 percent, and prices for capital equipment
increased 0.2 percent. On the other hand, the finished energy goods index
fell 0.7 percent, and prices for finished consumer foods declined 0.4
percent in December.
Before seasonal adjustment, the Producer Price Index for Finished
Goods edged down 0.1 percent to stand at 139.7 (1982=100). From December
1999 to December 2000, finished goods prices advanced 3.6 percent (the
largest calendar-year increase since a 5.7-percent gain in 1990), after
rising 2.9 percent during 1999. Prices for finished consumer foods
increased 1.7 percent during 2000, after rising 0.8 percent during the 12
months ended December 1999. The index for finished goods other than foods
and energy rose 1.2 percent in 2000, following a 0.9-percent gain in 1999.
By contrast, the price increases for finished energy goods slowed slightly,
advancing 17.1 percent in 2000 after posting an 18.1 percent rise in the
previous calendar year. At the earlier stages of processing, the
intermediate goods index increased 4.1 percent from December 1999 to
December 2000, after registering a 3.7-percent rise during 1999. Prices
for crude materials for further processing jumped 31.6 percent in 2000,
following a 15.3-percent increase in the prior calendar year. (See summary
below.)
Summary of December-to-December and 3-month seasonally adjusted annual rates
for selected stages of process
Seasonally adjusted annual
rate for:
Percentage 3 3 3 3
change 12 months months months months
Grouping months ended ended ended ended ended
in December in in in in
March June Sept. Dec.
1998 1999 2000 2000 2000 2000 2000
Finished goods 0.0 2.9 3.6 7.9 2.3 2.0 2.0
Finished consumer foods .1 .8 1.7 3.6 2.7 -2.3 2.7
Finished energy goods -11.7 18.1 17.1 51.8 8.3 8.6 4.6
Finished goods less foods
and energy 2.5 .9 1.2 .8 1.4 1.9 .8
Finished consumer goods,
excluding foods and energy 4.2 1.2 1.2 .8 1.0 2.1 1.0
Capital equipment 0 .3 1.2 .9 1.2 1.7 .9
Intermediate materials,
supplies, and components -3.3 3.7 4.1 9.6 2.8 2.8 1.2
Intermediate foods and feeds -7.3 -4.2 3.5 6.7 7.0 -8.2 9.7
Intermediate energy goods -12.1 19.6 19.5 46.3 4.5 20.3 8.9
Intermediate materials less
foods and energy -1.6 1.9 1.6 4.2 2.7 .3 -.6
Materials for nondurable
manufacturing -5.3 4.0 4.1 10.0 7.2 0 -.3
Materials for durable
manufacturing -5.5 2.4 .6 8.1 -1.2 .6 -4.6
Materials and components
for construction .1 2.2 .1 3.8 -.8 -2.1 -.5
Crude materials for further
processing -16.7 15.3 31.6 40.8 46.2 -1.3 46.7
Foodstuffs and feedstuffs -11.0 -.1 7.2 21.5 -10.4 -14.0 41.2
Crude energy materials -23.8 36.9 76.0 84.9 163.6 11.8 76.1
Crude nonfood materials
less energy -16.0 14.0 -5.8 9.9 -10.7 -10.5 -10.8
NOTE: Late reports and corrections by respondents may cause some indexes to
change 4 months after original publication. In addition, seasonally
adjusted indexes may be revised for 5 years due to the recalculation of
seasonal factors each January.
-3-
Finished goods
The index for finished consumer goods other than foods and energy
turned up 0.3 percent in December, after edging down 0.1 percent in
November. Prescription drug prices rose 0.6 percent, following a 1.6-
percent decline in the prior month. The indexes for alcoholic beverages,
light motor trucks, and women's apparel also rose, after falling in the
prior month. Passenger car prices rose at a faster pace than in November.
By contrast, December prices for newspaper circulation edged up 0.1
percent, following a 2.9-percent increase in the previous month. The
indexes for men's and boys' apparel and mobile homes edged down, after
rising last month. Prices for cosmetics and other toilet preparations and
for girls, children's and infants' apparel showed no change, following an
increase in November. From December 1999 to December 2000, the index for
finished consumer goods other than foods and energy increased 1.2 percent,
the same rate of increase posted for calendar year 1999.
The capital equipment index gained 0.2 percent in December, after
showing no change in the preceding two months. More than half of
December's increase can be traced to a 1.4-percent advance in prices for
light motor trucks and a 0.5-percent increase in passenger car prices. The
indexes for civilian aircraft, agricultural machinery and equipment, and
commercial furniture also rose in December. On the other hand, prices for
x-ray and electromedical equipment, electronic computers, truck trailers,
and heavy motor trucks declined in December. For the 12 months ended
December 2000, capital equipment prices increased 1.2 percent, following a
0.3-percent rise during the previous calendar year.
Table B. Monthly and annual percent changes in selected price indexes for
intermediate goods and crude goods, seasonally adjusted
__________________________________________________________________________________
| | | |
| | Intermediate goods | Crude goods |
| | | |
| |---------------------------------------------------------------------------|
| | | | |Change in | | | | Change |
| | | | | interme- | | | |in crude |
| | | | | diate | | | | goods |
| | | | |goods from| | | | from 12 |
| | | |Excluding|12 months | | |Excluding| months |
| | | |foods and|months ago| | Energy |foods and| ago |
|Month | Foods | Energy | energy | (unadj.) | Foods | (unadj.)| energy |(unadj.) |
|----------------------------------------------------------------------------------|
1999
Dec. -1.9 1.4 0.1 3.7 -2.0 -11.1 2.5 15.3
2000
Jan. .1 1.8 .4 4.1 .7 4.7 2.3 17.4
Feb. .5 4.3 .3 5.4 .6 8.9 .6 25.1
Mar. 1.0 3.6 .4 5.9 3.6 2.3 -.5 26.9
Apr. .8 -2.8 .4 5.3 1.5 -4.5 -1.0 22.2
May .7 -1.0 .1 5.0 -1.4 8.8 -.2 19.0
June .2 5.1 .1 5.5 -2.7 22.6 -1.6 29.0
July -.7 1.4 .2 5.2 -2.9 -2.3 -1.6 25.3
Aug. r -2.2 r -.9 -.1 4.3 r -4.3 r -4.1 r -1.7 r 14.7
Sept. r .8 r 4.2 0 4.5 r 3.6 r 9.7 r .6 16.3
Oct. .6 1.1 0 4.6 3.5 4.6 -.6 23.4
Nov. 0 0 -.1 4.2 1.3 -4.1 -2.3 14.9
Dec. 1.7 1.0 0 4.1 3.9 14.8 0 31.6
r=revised. Some of the figures shown above and elsewhere in this release may
differ from those previously reported because data for August 2000 have been
revised to reflect the availability of late reports and corrections by
respondents.
-4-
The index for finished energy goods fell 0.7 percent in December,
after posting a 0.4-percent gain in November. Gasoline prices dropped 8.4
percent, following a 1.4-percent increase a month ago. The index for
finished lubricants also declined, after rising in November. Liquefied
petroleum gas price increases slowed in December from November's pace. By
contrast, prices for residential electric power turned up 1.2 percent in
December, following a 0.7-percent decrease a month earlier. The index for
residential natural gas rose more than in the prior month. Prices for home
heating oil fell less than in November.
The finished consumer foods index fell 0.4 percent in December, after
registering a 0.2-percent gain in November. Prices for fresh and dry
vegetables dropped 26.0 percent, following a 4.0-percent increase a month
earlier. The indexes for pork, processed young chickens, bakery products,
soft drinks, and for shortening and cooking oils also turned down, after
rising in November. Conversely, prices for dairy products increased 2.9
percent in December, following a 1.0-percent gain in the prior month. The
index for beef and veal also rose more than in the previous month. Prices
for eggs for fresh use, fresh fruits and melons, and for finfish and
shellfish turned up, after falling in November.
Intermediate goods
The Producer Price Index for Intermediate Materials, Supplies, and
Components moved up 0.2 percent in December, seasonally adjusted, following
a 0.2-percent decrease in November. Prices for intermediate energy goods
rose, after showing no change a month ago. The index for materials for
durable manufacturing turned up, following a decline in the previous month.
Prices for intermediate foods and feeds rose in December, after showing no
change in the prior month. The construction materials index edged up,
following a decline in November. Nondurable manufacturing material prices
fell 0.1 percent for the second consecutive month. Excluding foods and
energy, the index for intermediate materials showed no change in December,
after registering a 0.1-percent decrease a month earlier. (See table B.)
Prices for intermediate energy materials increased 1.0 percent, after
posting no change in November. The industrial natural gas index surged
33.9 percent in December (the largest monthly increase since publication of
this index began in January 1992), following a 2.6-percent decline in the
prior month. The indexes for commercial natural gas, natural gas to
electric utilities, commercial electric power, and jet fuels also turned
up, following decreases in the previous month. Prices for industrial
electric power rose more than a month earlier. By contrast, the gasoline
index dropped 8.4 percent, after registering a 1.4-percent increase in
November. Diesel fuel prices also turned down, after rising in the prior
month. The December residual fuels index fell more than in November, and
liquefied petroleum gas prices rose less in December than in the previous
month. From December 1999 to December 2000, the intermediate energy goods
index advanced 19.5 percent, following a 19.6-percent gain in 1999.
Durable manufacturing material prices moved up 0.2 percent, after
posting a 1.1-percent decline in November. The steel mill products index
showed no change for December, following a 1.6-percent drop in the previous
month. Prices for primary aluminum (except extrusion billet), aluminum
mill shapes, copper cathode and refined copper, and for copper and brass
mill shapes turned up, after falling a month earlier. The plywood index
decreased less than in the prior month. On the other hand, prepared paint
prices turned down 0.5 percent, following a 0.3-percent gain in November.
The indexes for hardwood lumber and for building paper and board declined
more than a month ago. Prices for materials for durable manufacturing
increased 0.6-percent during 2000, after posting a 2.4-percent rise in the
previous year.
-5-
December's 1.7-percent advance for intermediate foods and feeds prices
represents the largest monthly increase since a 1.9-percent rise in March
1997. This index showed no change in November. Prepared animal feed
prices jumped 3.5 percent in December, following a 0.5-percent rise a month
ago. The indexes for fluid milk products; natural, processed, and
imitation cheese; and confectionery materials turned up, after falling in
the previous month. Prices for snack chips and for beef and veal increased
more than a month earlier. The crude vegetable oils index declined less
than in the prior month. By contrast, pork prices decreased 0.6 percent,
following a 1.8-percent advance in November. Butter prices also turned
down, after rising in the previous month. The refined sugar index was
unchanged, after rising a month ago. For the 12 months ended in December
2000, the intermediate foods and feeds index increased 3.5 percent,
following a 4.2-percent drop in the prior year.
Prices for materials and components for construction edged up 0.1
percent in December, after posting a 0.2-percent decline in November. The
softwood lumber index rose 0.1 percent, following a 1.4-percent decrease a
month earlier. The indexes for asphalt felts and coatings, switchgear, and
for plumbing fixtures and brass fittings also turned up, after declining in
the prior month. Prices for plywood and gypsum products fell less than a
month ago. Prices for fabricated structural metal products rose, following
no change in November. By contrast, the index for nonferrous wire and
cable moved down 0.3 percent, after registering a 0.2-percent increase in
the previous month. Prices for wiring devices and heating equipment
advanced less than a month ago. The index for materials and components for
construction edged up 0.1 percent during 2000, after a 2.2-percent rise
during all of 1999.
The index for materials for nondurable manufacturing inched down 0.1
percent, for the second consecutive month. In December, falling prices for
plastic resins and materials, paper, paperboard, woodpulp, intermediate
basic organic chemicals, and for processed yarns and threads slightly
outweighed rising prices for primary basic organic chemicals, fertilizer
materials, inedible fats and oils, and for alkalies and chlorine. During
2000, prices for materials for nondurable manufacturing jumped 4.1 percent,
after increasing 4.0 percent in 1999.
Crude goods
The Producer Price Index for Crude Materials for Further Processing
increased 8.7 percent in December, seasonally adjusted, following a 2.0-
percent decline in November. Prices turned up for crude energy materials,
after falling in the prior month. The index for crude foodstuffs and
feedstuffs rose more than a month earlier. Prices for basic industrial
materials remained unchanged in December, after declining a month ago.
(See table B.)
The index for crude energy materials advanced 14.8 percent in
December, after posting a 4.1-percent decrease in November. Prices for
natural gas jumped 35.3 percent, following an 11.1-percent decline in the
previous month. The index for coal turned up 3.0 percent, after falling
1.2 percent a month ago. Conversely, crude petroleum prices fell 11.1
percent in December, after increasing 7.1 percent in November. The crude
energy materials index advanced 76.0 percent during 2000 (the largest 12-
month increase since publication of this index began in January 1974),
following a 36.9-percent rise in 1999.
-6-
Prices for crude foodstuffs and feedstuffs increased 3.9 percent in
December, after posting a 1.3-percent gain in November. The index for
slaughter hogs advanced 12.0 percent, following a 9.6-percent rate of
decline in the previous month. Prices for fluid milk, slaughter broilers
and fryers, soybeans, and for fresh fruits and melons also turned up, after
decreasing a month ago. On the other hand, the index for fresh and dry
vegetables dropped 26.0 percent in December, following a 4.0-percent rise
in November. Prices for wheat, slaughter turkeys, and raw cane sugar also
turned down, after advancing in the prior month. The corn index rose less
than in November. During 2000, prices for crude foodstuffs and feedstuffs
rose 7.2 percent, after edging down 0.1 percent in 1999.
The index for crude nonfood materials less energy showed no change in
December, after declining 2.3 percent in November. Iron and steel scrap
prices edged up 0.2 percent, following an 8.2-percent decrease a month ago.
The indexes for leaf tobacco, copper ores, gold ores, and cattle hides also
turned up, after falling in the previous month. By contrast, wastepaper
prices declined 8.4 percent in December, following a 5.2-percent decrease
in November. The index for construction sand, gravel, and crushed stone
turned down, after rising a month earlier. Pulpwood prices increased at a
slower rate than in November. The basic industrial materials index fell
5.8 percent during the 2000 calendar year, following a 14.0-percent advance
in 1999.
Net output price indexes for mining, manufacturing, and services industries
Mining. The Producer Price Index for the Net Output of Total Domestic
Mining Industries rose 12.0 percent in December, following a 3.2-percent
decline in November. (Net output price indexes are not seasonally
adjusted.) In December, prices for the crude petroleum, natural gas, and
natural gas liquids industry advanced 14.9 percent, after showing a 3.9-
percent decrease in the prior month. Prices turned up for the bituminous
coal and lignite, copper ores, and gold ores industries, after falling in
November. The index for the kaolin and ball clay industry increased more
than in the previous month. By contrast, price increases for the oil and
gas well drilling industry slowed to 2.1 percent in December from 5.7
percent a month earlier. Prices for the construction sand and gravel;
crushed and broken granite; potash, soda, and borate minerals; and coal
mining services industries turned down, following increases last month. In
December, the Producer Price Index for the Net Output of Total Domestic
Mining Industries stood at 139.6 (December 1984=100). From December 1999
through December 2000, this index increased 61.0 percent, following a 29.8-
percent advance in the prior year.
Manufacturing. The Producer Price Index for the Net Output of Total
Domestic Manufacturing Industries decreased 0.4 percent in December, after
edging up 0.1 percent in November. Prices received by the petroleum
refining industry group fell 6.6 percent, following a 1.0-percent gain in
the previous month. The index for the printing, publishing, and allied
industries group rose less than a month ago. After increasing in the prior
month, prices remained unchanged for the non-electrical machinery, rubber
and miscellaneous plastic products, and furniture and fixtures industry
groups. By contrast, the index for the chemicals and allied products
industry group turned up 0.3 percent in December, following a 0.5-percent
decline in November. Prices for the food and kindred products industry
group rose more than in the prior month. The index for the transportation
equipment industry group turned up, after falling a month earlier. Price
declines were smaller in December than in November for the lumber and wood
products (except furniture) industry group and for the electrical and
electronic machinery, equipment, and supplies industry group. In December,
the Producer Price Index for the Net Output of Total Domestic Manufacturing
Industries stood at 134.4 (December 1984=100). From December 1999 through
December 2000, this index rose 3.0 percent, following a 3.7-percent
increase in 1999.
-7-
Services. Among service industries in December, price increases were
registered for general medical and surgical hospitals, operators and
lessors of nonresidential buildings, and scheduled air transportation. On
the other hand, prices for deep sea foreign transportation of freight,
travel agencies, real estate agents and managers, passenger car rental, non-
local trucking, and legal services decreased in December.
*****
Producer Price Index data for January 2001 will be
released on Friday, February 16, 2001 at 8:30 a.m. (E.S.T.)
Recalculated Seasonal Adjustment Factors and Relative Importances to be
Available on February 14, 2001
Each year with the release of PPI data for January, seasonal
adjustment factors are recalculated to reflect price movements from the
just-completed calendar year. This routine annual calculation may result
in revisions to seasonally adjusted indexes for the previous 5 years. The
following information will be available on February 14, 2001 (2 work days
prior to the release of PPI data for January 2001 on February 16):
-Seasonal factors for commodity indexes for the year 2001,
-Recalculated seasonal factors for the last 5 years (1996-2000) for the
commodity indexes,
-Recalculated seasonal factors for the last 5 years (1996-2000) for the
stage-of-processing indexes.
In addition to recalculated seasonal factors, relative importances, as
of December 2000, will also be available on February 14, 2001, at
ftp://ftp.bls.gov which is the BLS ftp site. Choose the "pub" directory,
the "special.requests" directory, and the "ppi" directory.
To request any of this information, call the Division of Industrial
Prices and Price Indexes, Section of Index Analysis and Public Information
at (202) 691-7705.
Improved Quality Adjustment for Microprocessors
Effective with the release of January 2001 data, the Bureau of Labor
Statistics will implement a new quality valuation methodology for
microprocessors designed and sold for computer applications. This new
quality adjustment methodology views changes in the processing power of
microprocessors as changes in quality and permits the explicit estimation
of their value. The new approach replaces current procedures which have
generally been limited to considering price differences between a new
microprocessor and its predecessor as a measure of the value of the quality
difference between the two.
For additional information, see the October 2000 issue of the Producer
Price Index Detailed Report, or contact the Section of Index Analysis and
Public Information at (ppi-info@BLS.gov) or (202) 691-7705
Bureau of Labor Statistics
mailto:ppi-info@bls.gov
Last modified:
Friday, January 12, 2001
URL: /news.release/ppi.nr0.htm
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