Economic News Release

FOR DATA ONLY:  (202) 691-5200      USDL 09-0811
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), TUESDAY,
http://www.bls.gov/ppi              JULY 14, 2009

                               Producer Price Indexes - June 2009

	The Producer Price Index for Finished Goods rose 1.8 percent in June, seasonally 
adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today.  This 
advance followed increases of 0.2 percent in May and 0.3 percent in April.  At the earlier stages 
of processing, prices received by producers of intermediate goods climbed 1.9 percent in June 
after moving up 0.3 percent in the preceding month, and the crude goods index increased 4.6 
percent following a 3.6-percent rise in May.  (See table A.)

	The June acceleration in finished goods prices was broad based.  The index for energy 
goods jumped 6.6 percent after advancing 2.9 percent in the prior month, prices for consumer 
foods increased 1.1 percent following a 1.6-percent drop in May, and the index for goods other 
than foods and energy rose 0.5 percent in June after edging down 0.1 percent in the previous 
month.  

	From June 2008 to December 2008, finished goods prices fell 6.2 percent, seasonally 
adjusted.  By contrast, from December 2008 to June 2009, the finished goods index increased 2.1 
percent.  During the first 6 months of 2009, the finished goods index climbed at a 4.2-percent 
seasonally adjusted annual rate (SAAR) after declining at a 12.1-percent SAAR during the 
second half of 2008.  This upturn is attributable to prices for finished energy goods, which 
increased at an 18.8-percent SAAR from December 2008 to June 2009 after falling at a 52.9-
percent SAAR in the 6 months ended December 2008.  By contrast, the index for finished goods 
other than foods and energy advanced at a 2.0-percent SAAR for the 6 months ended in June 
after rising at a 4.7-percent SAAR during the prior 6-month period.  Prices for finished consumer 
foods moved down at a 2.3-percent SAAR during the first half of 2009 after decreasing at a 1.8-
percent SAAR during the second half of 2008.  Earlier in the production chain, the intermediate 
goods index declined at a 1.6-percent SAAR from December 2008 to June 2009 after falling at a 
22.1-percent SAAR during the latter half of 2008, and prices for crude goods increased at a 5.2-
percent SAAR for the 6 months ended in June after dropping at a 66.0-percent SAAR for the 6 
months ended December 2008.  (See summary table.)  

	Before seasonal adjustment, the Producer Price Index for Finished Goods rose 1.9 percent 
in June to 174.1 (1982 = 100).  From June 2008 to June 2009, finished goods prices declined 4.6 
percent.  Over the same period, the index for finished energy goods fell 25.2 percent and prices 
for finished consumer foods decreased 2.2 percent.  By contrast, partially offsetting the overall 
decline in finished goods prices, the index for finished goods other than foods and energy 
increased 3.3 percent for the 12 months ended in June.  At the earlier stages of processing, prices 
received by manufacturers of intermediate goods moved down 12.5 percent and the crude goods 
index dropped 40.0 percent from June 2008 to June 2009.

Finished goods

	The index for finished energy goods climbed 6.6 percent in June following a 2.9-percent 
advance in May.  Gasoline prices jumped 18.5 percent after rising 13.9 percent in the preceding 
month.  The indexes for home heating oil, liquefied petroleum gas, diesel fuel, and kerosene also 
advanced more in June than they had a month earlier.  Prices for residential natural gas turned up 
after falling in May.  By contrast, the index for residential electric power decreased 0.9 percent 
in June following a 0.3-percent decline in the prior month.  Prices for finished lubricants also fell 
more than they had in May.  (See table 2.)  

	The index for finished consumer foods increased 1.1 percent in June after falling 1.6 
percent in May.  More than half of this upturn can be traced to prices for fresh and dry 
vegetables, which surged 21.8 percent following a 20.9-percent drop in the previous month.  The 
indexes for eggs for fresh use; bottled carbonated soft drinks; bakery products; and natural, 
processed, and imitation cheese also turned up in June.  Prices for processed young chickens rose 
more than in the preceding month.  By contrast, prices for beef and veal decreased 2.9 percent 
following a 9.2-percent advance in May.  The indexes for finfish and shellfish, fluid milk 
products, and melons also turned down in June.

	The index for finished goods other than foods and energy increased 0.5 percent in June 
after inching down 0.1 percent in May.  Accounting for most of this upturn, prices for light 
motor trucks climbed 3.4 percent following no change in the previous month, and the index for 
passenger cars rose 2.0 percent in June after edging up 0.1 percent in May.  Prices for 
pharmaceutical preparations, cosmetics and toilet preparations, and soaps and synthetic 
detergents advanced after falling in the prior month.  Conversely, the index for agricultural 
chemicals and chemical products decreased 14.8 percent in June following a 0.1-percent increase 
in May.  Prices for tobacco products also turned down in June.  Prices for electronic computers 
declined after no change a month earlier, while the index for newspaper circulation rose less than 
it had in May.

Intermediate goods

	The Producer Price Index for Intermediate Materials, Supplies, and Components 
advanced 1.9 percent in June following a 0.3-percent increase in the prior month.  Prices for 
intermediate energy goods rose more than they had in May.  The indexes for materials for both 
nondurable and durable manufacturing turned up in June.  Prices for materials and components 
for construction were unchanged after edging lower in May, and the intermediate foods and 
feeds index climbed at the same rate in June as in the prior month.  Excluding foods and energy, 
prices for intermediate materials rose 0.4 percent following a 0.2-percent decline a month earlier.  
(See table B.)

	The intermediate energy goods index advanced 8.9 percent in June after increasing 2.0 
percent in the previous month.  Jet fuel prices jumped 26.7 percent after decreasing 1.0 percent 
in May.  The indexes for residual fuel and commercial natural gas also turned up after falling in 
the preceding month.  Prices for diesel fuel, gasoline, and heating oil rose more in June.  The 
commercial electric power index decreased less than in May.  Conversely, partially offsetting the 
acceleration in the intermediate energy goods index, prices for industrial electric power declined 
2.0 percent after moving down 0.9 percent in May.  The index for natural gas to electric utilities 
rose less than in the prior month.  (See table 2.)  The intermediate energy goods index advanced 
at a 12.7-percent SAAR from December 2008 to June 2009 after decreasing at a 57.0-percent 
SAAR during the second half of 2008.

	Prices for materials for nondurable manufacturing moved up 4.6 percent in June 
following a 0.3-percent decline in the prior month.  The index for basic organic chemicals 
advanced 7.1 percent compared with a 0.5-percent gain in May.  Prices for synthetic fibers, 
plastic resins and materials, and synthetic rubber turned up after falling in the previous month.  
The indexes for paperboard and for writing and printing papers decreased less than they had in 
May.  By contrast, prices for agricultural chemicals and chemical products dropped 14.8 percent 
in June after edging up 0.1 percent in the preceding month.  The indexes for rock salt and for fats 
and oils also turned down following increases in May.  The index for materials for nondurable 
manufacturing rose at a 4.5-percent SAAR in the first half of 2009 after decreasing at a 30.9-
percent SAAR in the second half of 2008.

        Prices for materials for durable manufacturing increased 0.5 percent in June following a 
0.6-percent decline in the preceding month.  The index for hot rolled steel bars, plates, and 
structural shapes rose 2.5 percent after falling 1.3 percent in May.  Prices for semifinished steel 
mill products, softwood lumber, synthetic fibers, and titanium mill shapes also turned up in June.  
The index for copper and brass mill shapes rose more than in the prior month, while prices for 
cold rolled steel sheet and strip decreased less than in May.  By contrast, the rise in the index for 
primary nonferrous metals slowed to 4.2 percent in June from 8.2 percent in the previous month.  
Prices for aluminum mill shapes also rose less than they had in May.  The index for materials for 
durable manufacturing declined at a 17.4-percent SAAR in the 6 months ended June 2009 after 
falling at a 31.0-percent SAAR in the second half of 2008.

	Prices for materials and components for construction were unchanged after edging down 
0.1 percent in the prior month.  In June, price increases for asphalt felts and coatings, ready-
mixed concrete, nonferrous metals, softwood lumber, and millwork were offset by falling prices 
for structural, architectural, and pre-engineered metal products; treated wood and contract wood 
preserving; non-farm prefabricated metal building systems; paving mixtures and blocks; and 
unitary air conditioners.  The index for materials and components for construction decreased at a 
5.4-percent SAAR in the first half of 2009 after moving up at a 1.5-percent SAAR in the prior 6-
month period.  

        The intermediate foods and feeds index advanced 1.3 percent for the second consecutive 
month.  In June, higher prices for prepared animal feeds, processed young chickens, flour and 
flour base mixes and doughs, bulk fluid milk and cream, and bottled carbonated soft drinks 
outweighed lower prices for beef and veal, shortening and cooking oils, and pork.  The index for 
intermediate foods and feeds edged up at a 0.2-percent SAAR for the 6 months ended June 2009 
after decreasing at a 17.8-percent SAAR from June to December 2008.

Crude goods

	The Producer Price Index for Crude Materials for Further Processing increased 4.6 
percent in June compared with a 3.6-percent gain in May.  Prices for crude energy materials 
advanced more than they had in the previous month.  By contrast, partially offsetting the 
acceleration in prices for crude goods, the index for crude nonfood materials less energy 
increased less than in May, and prices for crude foodstuffs and feedstuffs turned down in June 
after rising a month earlier.  (See table B.)

	The index for crude energy materials rose 10.9 percent in June subsequent to a 5.3-
percent advance in the prior month.  Leading this acceleration, prices for natural gas moved up 
3.5 percent following a 5.7-percent drop in May.  In June, the increase in the crude petroleum 
index accelerated to 20.3 percent from 18.6 percent in the preceding month.  Conversely, coal 
prices advanced 1.7 percent compared with a 2.0-percent rise in May.  (See table 2.)  From 
December 2008 to June 2009, the index for crude energy materials increased at a 2.1-percent 
SAAR after falling at a 79.3-percent SAAR in the prior 6-month period.  

	The increase in the index for crude nonfood materials less energy slowed to 2.6 percent in 
June from 6.7 percent in the prior month.  Prices for carbon steel scrap moved up 0.5 percent 
subsequent to a 20.6-percent climb in May.  Increases in the indexes for copper ores, nonferrous 
scrap, corn, and wheat also decelerated from the previous month.  Phosphates prices fell more in 
June, and the pulpwood index turned down after rising in May.  By contrast, the increase in the 
index for gold ores accelerated to 5.7 percent from 2.5 percent in May.  Wastepaper prices also 
increased more than in the preceding month.  During the first half of 2009, the crude nonfood 
materials less energy index advanced at a 17.5-percent SAAR after dropping at a 64.5-percent 
SAAR in the previous 6-month period.

        Prices for crude foodstuffs and feedstuffs moved down 0.4 percent in June following a 
0.4-percent advance in the previous month.  The index for unprocessed finfish declined 39.5 
percent subsequent to a 5.0-percent increase in May.  Prices for slaughter poultry and corn 
increased less than in the preceding month.  The indexes for Irish potatoes for processing, 
slaughter cows and bulls, and slaughter steers and heifers decreased more in June than they had a 
month earlier.  By contrast, prices for fresh vegetables (except potatoes) jumped 36.1 percent 
after falling 26.4 percent in May.  The index for slaughter barrows and gilts declined less in June 
than in the previous month, and prices for hay, hayseeds, and oilseeds advanced more than in 
May.  The index for crude foodstuffs and feedstuffs decreased at a 0.4-percent SAAR in the first 
half of 2009 after falling at a 37.1-percent SAAR in the second half of 2008.

Net output price indexes

Mining, Utilities, and Manufacturing Industries.  The Producer Price Index for the Net Output 
of Total Mining, Utilities, and Manufacturing Industries advanced 1.7 percent in June after 
moving up 1.1 percent in the prior month.  (Net output price indexes are not seasonally adjusted.)  
The industry index for petroleum refineries climbed 17.9 percent subsequent to a 13.9-percent 
jump a month earlier.  Prices received by distributors of electric power and by the crude 
petroleum and natural gas extraction industry also rose more than they had in May.  The indexes 
for automobile, light truck, and utility vehicle manufacturing; natural gas distribution; and 
pharmaceutical preparation manufacturing turned up in June.  By contrast, partially offsetting the 
acceleration in the index for total mining, utilities, and manufacturing industries, the industry 
index for livestock slaughtering inched up 0.1 percent in June after advancing 6.2 percent a 
month earlier.  Prices received by manufacturers of phosphatic fertilizer declined at faster rates 
compared with the previous month.  For the first 6 months of 2009, the Producer Price Index for 
the Net Output of Total Mining, Utilities, and Manufacturing Industries increased at a 4.0-
percent annualized rate compared with an 18.8-percent annualized rate of decline in the final half 
of 2008.  In June, the index for total mining, utilities, and manufacturing industries was 107.0 
(December 2006 = 100), 8.1 percent below its year-ago level.

Trade Industries.  The Producer Price Index for the Net Output of Total Trade Industries moved 
up 1.2 percent in June compared with a 0.9-percent decline a month earlier.  (Trade indexes 
measure changes in margins received by wholesalers and retailers.)  Margins received by 
merchant wholesalers of nondurable goods increased 1.8 percent subsequent to a 2.0-percent 
decline in the preceding month.  The margin indexes for merchant wholesalers of durable goods, 
women's clothing stores, new car dealers, and discount department stores also turned up in June.  
Margins received by gasoline stations with convenience stores rose more than in the previous 
month.  By contrast, the margin index for non-discount department stores fell 6.5 percent 
following no change in May.  Margins received by electronic shopping and mail-order houses 
and by furniture stores turned down in June.  For the first half of 2009, the Producer Price Index 
for the Net Output of Total Trade Industries increased at a 0.4-percent annualized rate after rising 
at a 5.6-percent annualized rate in the second half of 2008.  In June, the index for total trade 
industries was 111.7 (December 2006 = 100), 2.9 percent above its year-ago level.

Transportation and Warehousing Industries.  The Producer Price Index for the Net Output of 
Transportation and Warehousing Industries edged up 0.3 percent in June following a 0.7-percent 
decrease in the previous month.  Leading this upturn, the index for the scheduled passenger air 
transportation industry increased 2.9 percent after declining 7.0 percent in May.  Prices received 
by the industries for local specialized freight trucking of new goods and freight transportation 
arrangement also turned up in June.  The index for couriers moved up subsequent to no change a 
month earlier.  By contrast, the index for the U.S. Postal Service was unchanged in June after 
increasing 2.9 percent in the prior month.  Prices received by transporters of both scheduled air 
and deep sea freight declined faster than in May.  The Coastal and Great Lakes freight 
transportation index turned down in June, and prices received by the industry for long-distance 
general freight trucking (by the truckload) rose less than in May.  From December 2008 to June 
2009, the Producer Price Index for the Net Output of Transportation and Warehousing Industries 
decreased at a 5.9-percent annualized rate following an 8.8-percent annualized rate of decline in 
the second half of 2008.  In June, the index for transportation and warehousing industries was 
106.6 (December 2006 = 100), 7.4 percent below its year-ago level.

Traditional Service Industries.  The Producer Price Index for the Net Output of Total 
Traditional Service Industries edged down 0.1 percent in June following a 0.5-percent gain a 
month earlier.  The index for the depository credit intermediation industry group decreased 1.7 
percent compared with a 3.2-percent advance in May.  Similarly, prices received by investment 
bankers and securities dealers, cellular and other wireless carriers, and casino hotels also turned 
down in June.  The industry index for management consulting services fell more than in the prior 
month.  Conversely, the industry index for portfolio management climbed 5.2 percent after 
increasing 1.1 percent in May.  Prices received by non-casino hotels and motels also rose more 
than a month earlier.  The industry indexes for passenger car rental and temporary help services 
turned up in June.  During the first half of 2009, the Producer Price Index for the Net Output of 
Total Traditional Service Industries moved up at a 0.6-percent annualized rate following a 0.2-
percent annualized rate of increase from June to December 2008.  In June 2009, the index for 
total traditional service industries was 102.4, (December 2006 = 100), 0.4 percent above its year-
ago level.

                                            *****

Producer Price Index data for July 2009 are scheduled to be released on Tuesday, August 18, 
2009 at 8:30 a.m. (EDT).



                       PPI Introduces Wherever Provided Services Indexes

        Effective with the release of July 2009 data on August 18, 2009, the Producer Price Index 
(PPI) program will begin publishing Wherever Provided (WEP) Services indexes.  Similar to 
current PPI commodity indexes, the new WEP service indexes are constructed with pricing 
information collected from PPI's industry-based survey, aggregated on a service-specific basis 
rather than by industry of origin.  Therefore, the WEP services indexes measure price changes 
for specific services, regardless of the type of companies providing the services.

        Since the WEP services indexes are conceptually similar to traditional PPI commodity 
indexes, they will be included in Table 6 of the PPI Detailed Report, with major WEP services 
grouping codes ranging from 30 through 80.

        Since the WEP services indexes do not include data for physical products, they will not 
contribute to the PPI's current Stage-of-Processing structure.

        Further information is available from the PPI Section of Index Analysis and Public 
Information, at ppi-info@bls.gov or (202) 691-7705.




                                PPI Expands Commodity Code Detail

        Effective with the release of July 2009 data on August 18, 2009, the Producer Price Index 
(PPI) program will have the capability to publish commodity indexes at a greater level of detail 
than previously has been available.  As such, the July 2009 data release will include some newly 
introduced commodity indexes associated with 9-digit or 10-digit commodity codes.  (The 
maximum code length permitted for commodity indexes will become 12 digits.)  These indexes 
will be available in both the PPI Detailed Report and on the BLS website at www.bls.gov/ppi, 
using the current commodity data retrieval tools.

        Further information is available from the PPI Section of Index Analysis and Public 
Information, at ppi-info@bls.gov or (202) 691-7705.



                           PPI Updates Industry Net Output Ratios

	Effective with the release of August 2009 data on September 15, 2009, the Producer Price 
Index (PPI) program will update the net output ratios used to calculate industry indexes based on 
the North American Industry Classification System (NAICS).  With this update, net output ratios 
will be based on 2002 Input-Output Account data from the Bureau of Economic Analysis (BEA) 
of the U.S. Department of Commerce.  Net output ratios represent the proportion of an industry's 
or industry grouping's output consumed outside its respective area.  Prior to this update, net 
output ratios for calculating NAICS-based PPIs reflected values from BEA 1997 Input-Output 
Accounts.  This update does not affect commodity-grouping indexes from the PPI.

	Further information is available from the PPI Section of Index Analysis and Public 
Information, at ppi-info@bls.gov or (202) 691-7705.



                    Upcoming Changes to the Producer Price Index News Release

        Effective with the August 2009 Producer Price Index (PPI) News Release scheduled for 
September 15, 2009, the Bureau of Labor Statistics will introduce changes in the presentation of 
the text section of the release.  There will be no changes to the format and content of the tables.  
A sample of the revamped PPI News Release will be posted on the BLS website on Friday 
August 14.  For further information, please see 
http://www.bls.gov/bls/changes_to_text_sections_of_nrs.htm.