Producer Price Index News Release text

FOR DATA ONLY:  (202) 691-5200      USDL 08-1273
FOR TECHNICAL INFORMATION:          TRANSMISSION OF MATERIAL IN
(202) 691-7705                      THIS RELEASE IS EMBARGOED
MEDIA CONTACT:  (202) 691-5902      UNTIL 8:30 A.M. (EDT), FRIDAY,
http://www.bls.gov/ppi              SEPTEMBER 12, 2008

                             Producer Price Indexes - August 2008

	The Producer Price Index for Finished Goods declined 0.9 percent in August, seasonally 
adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today.  This 
decrease followed advances of 1.2 percent in July and 1.8 percent in June.  At the earlier stages 
of processing, prices received by manufacturers of intermediate goods fell 1.0 percent in August 
after rising 2.7 percent in the prior month, and the crude goods index dropped 11.9 percent 
following a 4.2-percent increase in July.  (See table A.)

	Leading the downturn in prices for finished goods, the index for energy goods fell 4.6 
percent in August after climbing 3.1 percent in July.  Prices for goods other than foods and 
energy advanced 0.2 percent following a 0.7-percent rise in the previous month.  The index for 
consumer foods increased 0.3 percent in August, the same rate as in July.

Table A. Monthly and annual percent changes in selected stage-of-processing price indexes, seasonally adjusted
Month Finished goods Intermediate
goods
Crude
goods
Total Foods Energy Except foods
and energy
Change in
finished goods
from 12 months
ago (unadj.)

2007

Aug.

-0.8 0.0 -4.2 0.1 2.3 -0.9 -3.5

Sept.

0.5 1.1 1.2 0.1 4.4 0.0 0.9

Oct.

0.5 1.3 1.1 0.1 6.1 0.6 4.0

Nov.

2.6 -0.2 11.7 0.3 7.3 2.9 6.8

Dec.

-0.5 1.3 -3.5 0.1 6.2 0.2 1.8

2008

Jan.

1.2 1.7 2.2 0.6 7.4 1.2 2.9

Feb.

0.3 -0.6 1.0 0.4 6.5 0.9 3.9

Mar.

0.9 1.4 2.5 0.1 6.7 2.4 6.7

Apr.(1)

0.3 0.0 -0.1 0.5 6.4 1.0 4.7

May(1)

1.4 0.7 4.8 0.3 7.2 2.6 6.6

June

1.8 1.5 6.0 0.2 9.2 2.1 3.7

July

1.2 0.3 3.1 0.7 9.8 2.7 4.2

Aug.

-0.9 0.3 -4.6 0.2 9.6 -1.0 -11.9

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for April 2008 have been revised to reflect the availability of late reports and corrections by respondents.

	Before seasonal adjustment, the Producer Price Index for Finished Goods decreased 1.6 
percent in August to 182.1 (1982 = 100).  From August 2007 to August 2008, prices for finished 
goods advanced 9.6 percent.  Over the same period, the index for finished energy goods 
increased 27.4 percent, prices for finished goods other than foods and energy rose 3.6 percent, 
and the index for finished consumer foods climbed 9.1 percent.  At the earlier stages of 
processing, prices received by producers of intermediate goods jumped 16.7 percent and the 
crude goods index surged 38.1 percent for the 12 months ended in August.

Finished goods

	The index for finished energy goods declined 4.6 percent in August following a 3.1-
percent advance in July.  Prices for liquefied petroleum gas dropped 19.5 percent in August after 
rising 10.8 percent a month earlier.  The indexes for residential natural gas, home heating oil, 
diesel fuel, and kerosene also turned down following increases in July.  Gasoline prices fell more 
in August than they had in the prior month, while the index for residential electric power rose 
less than it had in July.  Conversely, slightly counteracting the overall downturn in finished 
energy goods, prices for finished lubricants advanced 8.6 percent in August after moving up 5.4 
percent in the preceding month.  (See table 2.)

	The index for finished goods other than foods and energy moved up 0.2 percent in 
August following a 0.7-percent jump in July.  Prices for pharmaceutical preparations advanced 
0.4 percent in August after rising 0.7 percent in the prior month.  The indexes for light motor 
trucks, passenger cars, heavy motor trucks, and for medical, surgical, and personal aid devices 
fell after advancing in July.  Prices for turbines and turbine generator sets were unchanged in 
August following a surge in the previous month.  By contrast, the civilian aircraft index climbed 
0.7 percent after rising 0.3 percent in July.  Prices for pet food and for industrial trucks and 
tractors also moved up more than they had a month earlier.

Table B. Monthly and annual percent changes in selected price indexes for intermediate goods and crude goods, seasonally adjusted
Month Intermediate goods Crude goods
Foods Energy Except
foods
and energy
Change in
intermediate
goods from
12 months
ago (unadj.)
Foods Energy Except
foods
and energy
Change in
crude
goods from
12 months
ago (unadj.)

2007

Aug.

0.4 -2.9 -0.4 2.4 -1.6 -6.4 0.6 6.1

Sept.

1.3 -0.5 0.1 4.1 2.7 -0.8 2.2 11.3

Oct.

1.2 1.3 0.4 5.7 -0.2 8.2 1.5 26.8

Nov.

1.4 10.4 0.8 7.9 2.9 12.3 -0.9 20.9

Dec.

2.0 0.1 0.1 7.1 4.2 0.5 0.8 19.8

2008

Jan.

3.5 1.9 0.9 8.9 3.1 1.8 4.7 30.8

Feb.

2.4 1.2 0.6 9.0 1.2 6.6 3.6 24.6

Mar.

3.0 6.0 1.3 10.7 2.2 11.5 3.7 29.7

Apr.(1)

0.2 0.1 1.4 10.8 -0.5 6.3 10.1 34.5

May(1)

2.1 6.3 1.5 12.6 0.6 12.5 2.7 41.5

June

1.0 5.0 1.3 14.5 3.5 5.4 -0.2 45.5

July

4.0 4.3 2.0 16.6 0.1 6.9 3.4 51.2

Aug.

-0.2 -8.2 1.7 16.7 -5.2 -19.4 -1.9 38.1

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for April 2008 have been revised to reflect the availability of late reports and corrections by respondents.

	The index for finished consumer foods increased 0.3 percent in August, the same as in 
July.  In August, higher prices for meats, canned vegetables and vegetable juices, eggs for fresh 
use, Irish potatoes for consumer use, spices, and confectionery end products outweighed lower 
prices for fresh vegetables (excluding potatoes), packaged fluid milk and related products, fresh 
fruits and melons, and for shortening and cooking oils.

Intermediate goods

        The Producer Price Index for Intermediate Materials, Supplies, and Components declined 
1.0 percent in August following a 2.7-percent increase in July.  Prices for intermediate energy 
goods and for intermediate foods and feeds turned down after rising in July.  The indexes for 
materials for both durable and nondurable manufacturing and for materials and components for 
construction advanced less than they had in the previous month.  Excluding foods and energy, 
the intermediate materials index rose 1.7 percent after increasing 2.0 percent in July.  (See table 
B.)

	Prices for intermediate energy goods fell 8.2 percent in August after moving up 4.3 
percent in July.  The jet fuels index dropped 24.9 percent compared with a 6.5-percent increase a 
month earlier.  Prices also turned down in August for diesel fuel, utility natural gas, residual 
fuels, liquefied petroleum gas, and heating oil.  The index for gasoline fell more than in July.  By 
contrast, slightly offsetting the downturn in intermediate energy goods prices, the index for 
finished lubricants advanced 8.6 percent in August following a 5.4-percent gain in the prior 
month.  (See table 2.)

        Prices for intermediate foods and feeds edged down 0.2 percent in August after rising 4.0 
percent in July.  The index for formula feeds decreased 1.7 percent following an 8.3-percent 
advance in the previous month.  Prices for shortening and cooking oils and for fluid milk 
products also turned down after rising in July.  The indexes for corn, cottonseed, and soybean 
cake and meal and for beef and veal increased less than in July.  By contrast, flour prices 
advanced 1.5 percent in August after dropping 7.8 percent in the prior month.  The indexes for 
pork and for refined sugar and byproducts rose more in August than a month earlier.  Prices for 
natural cheese (except cottage cheese) fell less than in July.

        The index for materials for durable manufacturing moved up 0.4 percent in August after 
climbing 1.5 percent in July.  Prices for thermoplastic resins and materials increased 2.9 percent 
following an 8.7-percent advance in the prior month.  The indexes for primary nonferrous 
metals, copper and brass mill shapes, secondary precious metals, and specialty glass turned down 
after rising in July.  By contrast, prices for semifinished steel mill products advanced 5.2 percent 
in August after moving up 2.2 percent in the previous month.  The index for prepared paint also 
increased more than it had in July.  Prices for cold rolled steel sheet and strip fell less in August 
than a month earlier.  The indexes for softwood lumber and refined lead turned up after declining 
in July. 
        
        The materials for nondurable manufacturing index advanced 5.2 percent in August 
following a 5.4-percent rise in July.  In August, higher prices for industrial chemicals, 
agricultural chemicals and chemical products, plastic resins and materials, non-corrugated 
paperboard, woodpulp, rubber and rubber products, and writing and printing papers outweighed 
lower prices for inedible fats and oils and for shortening and cooking oils.

	The index for materials and components for construction increased 1.5 percent in August 
following a 1.7-percent rise in July.  Prices for paving mixtures and blocks advanced 9.6 percent 
following a 14.5-percent jump in the prior month.  Prices for cast iron pressure and soil pipe and 
fittings, plastic construction products, and nonferrous wire and cable also increased less in 
August.  The indexes for custom roll form metal products and wiring devices turned down after 
rising in the preceding month.  Conversely, softwood lumber prices advanced 1.1 percent in 
August following a 3.4-percent decline a month earlier.  The indexes for architectural coatings; 
roofing asphalt, pitches, coatings, and cement; and gypsum products rose more than they had in 
July.

Crude goods

	The Producer Price Index for Crude Materials for Further Processing fell 11.9 percent in 
August compared with a 4.2-percent advance in the previous month.  This downturn was broad 
based, with prices for crude energy materials, foodstuffs and feedstuffs, and nonfood materials 
less energy all decreasing after rising in July.  (See table B.)

	Prices for crude energy materials dropped 19.4 percent following a 6.9-percent gain in 
July.  A major contributor to this downturn was the natural gas index which dropped 23.9 percent 
in August compared with a 7.8-percent increase in the preceding month.  Similarly, prices for 
crude petroleum fell 17.6 percent after moving up 6.7 percent in July.  By contrast, partially 
offsetting the downturn in prices for crude energy materials, the coal index rose 2.7 percent 
subsequent to a 2.1-percent advance a month earlier.  (See table 2.)  

        The crude foodstuffs and feedstuffs index moved down 5.2 percent in August after 
edging up 0.1 percent in the prior month.  Prices for soybeans declined 21.8 percent compared 
with a 7.0-percent rise in July.  The index for slaughter poultry also turned down in August.  
Prices for corn and fluid milk declined more than they had a month earlier.  The index for 
slaughter steers and heifers increased less than it had in July.  By contrast, the index for slaughter 
hogs climbed 20.1 percent following a 2.1-percent decrease a month earlier.  Prices for wheat 
and ungraded chicken eggs also turned up in August.  The fresh fruits and melons index declined 
less than it had in July. 
        
        The index for crude nonfood materials less energy fell 1.9 percent following a 3.4-
percent advance in July.  Leading this downturn, prices for iron and steel scrap fell 3.7 percent 
compared with a 5.2-percent increase in the previous month.  Similarly, the indexes for 
nonferrous scrap; gold ores; soybeans; plant and animal fibers; and softwood logs, bolts, and 
timber also turned down in August.  Conversely, prices for construction sand, gravel, and 
crushed stone advanced 1.3 percent after edging down 0.2 percent in July.  The phosphates index 
increased more than it had a month earlier.  

Net output price indexes

Mining, Utilities, and Manufacturing Industries.  The Producer Price Index for the Net Output 
of Total Mining, Utilities, and Manufacturing Industries turned down 1.4 percent after climbing 
2.2 percent in July.  (Net output price indexes are not seasonally adjusted.)  The index for the 
petroleum refineries industry declined 11.4 percent in August after increasing 5.5 percent a 
month earlier.  Prices received by natural gas distributors; oil and gas extractors; automotive, 
light truck, and utility vehicle manufacturers; as well as by complete swine feed producers also 
turned down after advancing in the prior month.  The industry index for electric power 
distribution was unchanged in August after moving higher in the previous month, and prices 
received by livestock slaughterhouses rose less than in July.  Conversely, partially offsetting the 
downturn in the index for total mining, utilities, and manufacturing industries, the increase in 
prices received by the electric power generation industry accelerated to 8.1 percent in August 
from 5.0 percent in the preceding month.  In August, the index for total mining, utilities, and 
manufacturing industries was 117.2 (December 2006 = 100), 12.5 percent above its year-ago 
level.

Trade Industries.  The advance in the Producer Price Index for the Net Output of Total Trade 
Industries accelerated to 2.1 percent in August from 1.1 percent in July.  (Trade indexes measure 
changes in margins received by wholesalers and retailers.)  The margin index for merchant 
wholesalers of nondurable goods jumped 7.9 percent in August after moving up 0.2 percent in 
the prior month.  Margins received by merchant wholesalers of durable goods also climbed more 
than in July.  The margin indexes for fuel dealers and women's clothing stores turned up in 
August after falling a month earlier.  By contrast, the margin index for gasoline stations with 
convenience stores rose 5.0 percent following a 24.2-percent jump in July.  Margins received by 
pharmacies and drug stores, grocery stores (excluding convenience stores), and non-discount 
department stores turned down in August after moving higher in the previous month.  In August, 
the index for total trade industries was 112.4 (December 2006 = 100), 7.7 percent above its year- 
ago level.

Transportation and Warehousing Industries.  The increase in the Producer Price Index for the 
Net Output of Total Transportation and Warehousing Industries slowed to 0.2 percent in August 
from 0.8 percent in July.  The index for the couriers industry climbed 1.0 percent in August after 
rising 2.4 percent in the prior month.  Prices received by the industries for scheduled passenger 
air transportation, long-distance specialized freight trucking of new goods, nonscheduled air 
passenger chartering, freight transportation arrangement, as well as, the general freight trucking 
industry group, turned down after advancing in July.  Conversely, the industry index for 
scheduled freight air transportation turned up 11.9 percent in August after falling 5.6 percent a 
month earlier.  Prices received by deep sea freight transporters increased more than in July.  In 
August, the index for total transportation and warehousing industries was 116.1 (December 2006 
= 100), 10.2 percent above its year-ago level.

Traditional Service Industries.  The Producer Price Index for the Net Output for Total 
Traditional Service Industries turned up 0.7 percent in August after edging down 0.2 percent in 
July.  The index for the commercial banking industry climbed 5.2 percent in August after 
declining 5.5 percent a month earlier.  Prices received by the industries for casino hotels; cellular 
and other wireless carriers; and by the securities, commodity contracts, and like activities 
industry sector also turned up following July decreases.  Conversely, the industry index for non-
casino hotels and motels turned down 1.3 percent in August after advancing 4.1 percent in the 
preceding month.  Prices received by the industries for passenger car rental, offices of real estate 
agents and brokers, and general medical and surgical hospitals also fell after rising in July.  In 
August, the index for total traditional service industries was 102.5 (December 2006 = 100), 0.6 
percent above its year-ago level.

                                             *****
Producer Price Index data for September 2008 are scheduled to be released on Wednesday, 
October 15, 2008 at 8:30 a.m. (EDT).





The PDF version of the news release

Table of Contents

Last Modified Date: September 12, 2008