Bureau of Labor Statistics: Producer Price Index News Release

Jan 12, 2024

The Producer Price Index for final demand fell 0.1 percent in December, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices moved down 0.1 percent in November and 0.4 percent in October. (See Table A.) On an unadjusted basis, the index for final demand rose 1.0 percent in 2023 after increasing 6.4 percent in 2022.

The December decrease in the index for final demand is attributable to a 0.4-percent drop in prices for final demand goods. The index for final demand services was unchanged. The index for final demand less foods, energy, and trade services rose 0.2 percent in December after edging up 0.1 percent in both November and October. Prices for final demand less foods, energy, and trade services climbed 2.5 percent in 2023 following a 4.7 percent increase in 2022.

Final Demand

Final demand goods: The index for final demand goods fell 0.4 percent in December, the third consecutive decline. In December, nearly 60 percent of the decrease can be traced to a 1.2 percent drop in prices for final demand energy. The index for final demand foods moved down 0.9 percent, while prices for final demand goods fewer foods, and energy were unchanged.

Product detail: In December, half of the decrease in the index for final demand goods is attributable to prices for diesel fuel, which dropped 12.4 percent. The indexes for jet fuel; eggs for fresh use; non-carbonated soft drinks; passenger cars; and hay, hayseeds, and oilseeds also moved lower. In contrast, gasoline prices rose 2.1 percent. The indexes for carbonated soft drinks and for nonferrous scrap also increased. (See table 2.)

Final demand services: The index for final demand services remained unchanged in December, the same as in both November and October. In December, prices for final demand services less trade, transportation, and warehousing rose 0.4 percent. Conversely, the indexes for final demand trade services and for final demand transportation and warehousing services fell 0.8 percent and 0.4 percent, respectively. (Trade indexes measure changes in margins received by wholesalers and retailers.)

Product detail: Within the index for final demand services in December, prices for securities brokerage, dealing, and investment advice increased 3.3 percent. The indexes for consumer loans (partial), application software publishing, airline passenger services, and fuels and lubricants retailing also moved higher. In contrast, margins for machinery and vehicle wholesaling decreased 5.5 percent. The indexes for guestroom rental, long-distance motor carrying, automobiles and parts retailing, and apparel wholesaling also fell.

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.)
2022
Dec.	-0.3	0.2	-1.4	-0.9	-6.3	0.1	0.2	0.3	0.0	0.2	6.4	4.7
2023
Jan.	0.4	0.5	1.3	-1.3	5.4	0.6	0.0	-0.8	-0.5	0.5	5.7	4.4
Feb.	0.0	0.3	-0.4	-2.3	-0.8	0.3	0.2	-0.2	-0.8	0.4	4.7	4.5
Mar.	-0.4	0.1	-1.1	0.2	-6.1	0.2	-0.1	-0.6	-0.7	0.2	2.7	3.7
Apr.	0.2	0.2	0.1	-0.4	0.7	0.1	0.2	0.4	-2.5	0.5	2.3	3.4
May	-0.3	0.0	-1.5	-1.0	-6.9	0.1	0.2	0.8	-0.5	0.0	1.1	2.9
June	0.1	0.3	0.0	-0.3	0.8	-0.2	0.1	-0.7	0.0	0.5	0.3	2.9
July	0.5	0.2	0.3	0.4	0.9	0.0	0.7	1.6	0.3	0.4	1.1	2.9
Aug.(1)	0.7	0.2	1.9	-0.4	10.2	0.1	0.2	0.1	-0.1	0.3	1.9	2.9
Sept.(1)	0.4	0.3	0.8	0.6	3.1	0.2	0.2	-0.1	0.1	0.4	2.0	2.9
Oct.(1)	-0.4	0.1	-1.4	-0.1	-6.7	0.0	0.0	-0.3	0.7	0.0	1.2	2.8
Nov.(1)	-0.1	0.1	-0.3	0.7	-2.4	0.1	0.0	-0.1	-0.2	0.1	0.8	2.4
Dec.	-0.1	0.2	-0.4	-0.9	-1.2	0.0	0.0	-0.8	-0.4	0.4	1.0	2.5
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for August 2023 through November 2023 have been revised to reflect the availability of late reports and corrections by respondents.

Intermediate Demand by Commodity Type

Within intermediate demand in December, the index for processed goods fell 0.6 percent, prices for
unprocessed goods dropped 4.4 percent, and the index for services rose 0.4 percent. (See tables B and
C.)

Processed goods for intermediate demand: The index for processed goods for intermediate
demand fell 0.6 percent in December, the third consecutive decline. In December, the decrease was
led by a 3.8-percent drop in prices for processed energy goods. The index for processed foods and
feeds fell 0.7 percent. Conversely, prices for processed materials less foods and energy rose 0.2
percent. The index for processed goods for intermediate demand fell 2.7 percent in 2023 after
increasing 4.8 percent in 2022.

Product detail: Most of the December decrease in the index for processed goods for intermediate
demand can be attributed to a 12.4-percent drop in prices for diesel fuel. The indexes for jet fuel,
basic organic chemicals, prepared animal feeds, residual fuels, and natural gas to electric utilities also
moved lower. In contrast, prices for cold rolled steel sheet and strip jumped 14.6 percent. The indexes
for fabricated structural metal and for electric power also increased.

Unprocessed goods for intermediate demand: Prices for unprocessed goods for intermediate
demand moved down 4.4 percent in December, the largest decline since falling 5.2 percent in May.
Eighty percent of the December decrease can be traced to a 9.1-percent drop in the index for
unprocessed energy materials. Prices for unprocessed foodstuffs and feedstuffs moved down 2.5
percent. Conversely, the index for unprocessed nonfood materials less energy increased 0.2 percent.
Prices for unprocessed goods for intermediate demand fell 19.0 percent in 2023 after rising 10.7
percent in 2022.

Product detail: Over 80 percent of the decrease in the index for unprocessed goods for intermediate
demand can be attributed to a 13.2-percent drop in prices for crude petroleum. The indexes for
slaughter hogs; hay, hayseeds, and oilseeds; slaughter steers and heifers; corn; and carbon steel scrap
also declined. In contrast, prices for nonferrous scrap increased 3.6 percent. The indexes for slaughter
chickens and natural gas also moved higher.

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.)
2022
Dec.	-2.5	-0.6	-9.8	-0.4	4.8	1.5	-0.2	5.2	-1.7	10.7
2023
Jan.	1.1	0.2	4.9	0.1	3.9	-4.7	-5.8	-7.0	2.1	2.8
Feb.	-0.4	-2.1	-1.6	0.2	2.1	-4.9	-1.0	-10.9	0.3	-10.4
Mar.	-1.0	-0.2	-3.9	-0.2	-1.0	-4.7	-0.7	-11.1	-0.9	-16.8
Apr.	-0.5	-1.1	-2.9	0.2	-3.4	1.1	-1.5	3.7	1.8	-20.3
May	-1.6	-1.8	-7.0	-0.1	-7.2	-5.2	-4.6	-8.0	-2.1	-28.2
June	-0.5	-1.2	-0.5	-0.4	-9.4	-1.0	1.0	-2.8	-1.6	-32.1
July	-0.3	1.2	-0.1	-0.5	-7.6	2.4	-0.9	10.1	-3.1	-24.1
Aug.(1)	2.1	0.7	11.8	-0.2	-4.4	2.3	0.1	6.0	0.1	-26.2
Sept.(1)	0.6	0.7	2.4	0.0	-3.7	3.3	2.3	6.8	-0.7	-21.5
Oct.(1)	-1.0	-0.3	-4.5	-0.1	-4.6	-2.0	-3.1	-2.1	0.0	-14.8
Nov.(1)	-0.4	-0.6	-1.2	-0.2	-4.5	-2.4	-1.0	-5.8	0.9	-14.2
Dec.	-0.6	-0.7	-3.8	0.2	-2.7	-4.4	-2.5	-9.1	0.2	-19.0
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for August 2023 through November 2023 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 climbed 0.4 
percent in December, the largest increase since moving up 0.6 percent in July. Over 80 percent of the 
broad-based December rise can be traced to a 0.5-percent advance in prices for services less trade, 
transportation, and warehousing for intermediate demand. The indexes for trade services for 
intermediate demand and for transportation and warehousing services for intermediate demand also 
moved up, 0.4 percent and 0.1 percent, respectively. In 2023, prices for services for intermediate 
demand increased 3.4 percent following a 6.0-percent jump in 2022. 

Product detail: Over 20 percent of the December increase in the index for services for intermediate 
demand can be attributed to prices for securities brokerage, dealing, and investment advice, which 
moved up 3.3 percent. The indexes for gross rents for retail properties; management, scientific, and 
technical consulting services; television advertising time sales; metals, minerals, and ores 
wholesaling; and airline passenger services also rose. Conversely, prices for business loans (partial) 
decreased 1.6 percent. The indexes for long-distance motor carrying and for food and alcohol 
wholesaling also fell.

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.)
2022
Dec.	0.0	-1.3	0.0	0.4	6.0
2023
Jan.	1.0	0.8	0.5	1.1	6.3
Feb.	0.3	-0.7	0.0	0.7	6.2
Mar.	-0.3	0.9	-1.0	-0.5	4.5
Apr.	0.7	0.8	-1.1	1.0	4.4
May	0.2	-0.3	-0.3	0.4	3.9
June	0.1	-0.8	-0.1	0.4	4.4
July	0.6	2.1	0.9	0.1	4.7
Aug.(1)	-0.1	-0.5	-0.6	0.1	4.2
Sept.(1)	0.2	-0.5	0.6	0.3	3.9
Oct.(1)	0.0	1.8	0.6	-0.5	3.4
Nov.(1)	0.3	0.6	-0.2	0.3	3.0
Dec.	0.4	0.4	0.1	0.5	3.4
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for August 2023 through November 2023 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 increased 0.2 percent in
December following a 0.1-percent rise in November. In December, the index for total services inputs
to stage 4 intermediate demand moved up 0.4 percent, while prices for total goods inputs were
unchanged. (See table D.) Increases in the indexes for securities brokerage, dealing, and investment
advice; gross rents for retail properties; fabricated structural metal; portfolio management; electric
power; and gasoline outweighed falling prices for diesel fuel, gross rents for office buildings, and
business loans (partial). In 2023, the index for stage 4 intermediate demand rose 2.1 percent after
moving up 5.9 percent in 2022.

Stage 3 intermediate demand: Prices for stage 3 intermediate demand declined 0.4 percent in
December, the third consecutive decrease. In December, the index for total goods inputs to stage 3
intermediate demand fell 1.4 percent. In contrast, prices for total services inputs increased 0.4
percent. Decreases in the indexes for diesel fuel; jet fuel; slaughter hogs; slaughter steers and heifers;
hay, hayseeds, and oilseeds; and business loans (partial) outweighed higher prices for television
advertising time sales, slaughter chickens, and cold rolled steel sheet and strip. In 2023, the index for
stage 3 intermediate demand declined 2.4 percent following a 5.1-percent rise in 2022.

Stage 2 intermediate demand: Prices for stage 2 intermediate demand decreased 1.6 percent in
December, the largest decline since dropping 2.5 percent in March. In December, the index for total
goods inputs to stage 2 intermediate demand fell 4.1 percent. Conversely, prices for total services
inputs increased 0.2 percent. Decreases in the indexes for crude petroleum, business loans (partial),
oilseeds, basic organic chemicals, guestroom rental, and non-corrugated paperboard outweighed
rising prices for deposit services (partial), natural gas, and nonferrous scrap. In 2023, the index for
stage 2 intermediate demand moved down 5.5 percent after increasing 7.7 percent in 2022.

Stage 1 intermediate demand: Prices for stage 1 intermediate demand fell 0.2 percent in December,
the third consecutive decline. In December, the index for total goods inputs to stage 1 intermediate
demand decreased 0.9 percent. In contrast, prices for total services inputs rose 0.4 percent. Declines
in the indexes for diesel fuel, guestroom rental, basic organic chemicals, residual fuels, gross rents
for office buildings, and long-distance motor carrying outweighed increases in prices for securities
brokerage, dealing, and investment advice; gross rents for retail properties; and fabricated structural
metal products. In 2023, the index for stage 1 intermediate demand fell 0.2 percent following a 5.4-
percent rise in 2022.

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
2022
Dec.	-0.4	-0.7	0.0	-2.0	-3.8	0.0	1.0	1.5	0.6	-1.8	-3.0	-0.4
2023
Jan.	1.0	0.8	1.2	0.2	-0.5	0.9	-0.9	-2.9	0.9	0.7	0.8	0.7
Feb.	0.0	-0.1	0.2	-0.2	-0.6	0.1	-1.4	-4.6	1.2	-0.3	-0.4	-0.2
Mar.	-0.3	-0.5	-0.1	-0.7	-1.1	-0.4	-2.5	-4.9	-0.7	-0.4	-1.0	0.2
Apr.	0.3	-0.2	0.7	-0.2	-1.2	0.7	0.9	1.2	0.7	-0.1	-0.7	0.5
May	-0.2	-0.6	0.2	-1.4	-3.0	-0.1	-1.4	-4.1	0.6	-1.0	-1.8	-0.2
June	0.0	0.0	0.1	-0.1	-0.1	-0.2	-1.0	-2.2	-0.2	-0.1	-0.6	0.3
July	0.3	-0.1	0.7	-0.4	-1.4	0.5	1.9	4.0	0.4	0.1	-0.7	0.8
Aug.(1)	0.5	0.7	0.4	1.1	3.3	-0.6	0.7	2.3	-0.5	1.4	2.6	0.3
Sept.(1)	0.2	0.3	0.2	0.6	1.2	0.1	1.1	3.1	-0.4	0.3	0.3	0.3
Oct.(1)	-0.3	-0.5	-0.1	-0.6	-2.0	0.5	-0.3	-1.3	0.5	-0.4	-0.8	0.0
Nov.(1)	0.1	-0.1	0.3	-0.3	-1.2	0.4	-1.0	-2.4	0.2	-0.1	-0.5	0.4
Dec.	0.2	0.0	0.4	-0.4	-1.4	0.4	-1.6	-4.1	0.2	-0.2	-0.9	0.4
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for August 2023 through November 2023 have been revised to reflect the availability of late reports and corrections by respondents.

________________
The Producer Price Index for January 2024 is scheduled to be released on Friday, February 16, 2024, 
at 8:30 a.m. (ET).
                                                *****

          Recalculated Seasonal Adjustment Factors and Relative Importance Fi

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