US Bureau of Labor statistics: Producer price index November - 2024

The Producer Price Index for final demand rose 0.4 percent in November, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices increased 0.3 percent in October and 0.2 percent in September. (See table A.) On an unadjusted basis, the index for final demand advanced 3.0 percent for the 12 months ended in November, the largest rise since moving up 4.7 percent for the 12 months ended February 2023.

In November, nearly 60 percent of the broad-based rise in final demand prices can be attributed to a 0.7-percent increase in the index for final demand goods. Prices for final demand services moved up 0.2 percent. 

The index for final demand less foods, energy, and trade services inched up 0.1 percent in November after rising 0.3 percent in October. For the 12 months ended in November, prices for final demand less foods, energy, and trade services advanced 3.5 percent. 

Final Demand

Final demand goods: The index for final demand goods moved up 0.7 percent in November, the largest increase since rising 1.1 percent in February. Eighty percent of the broad-based advance in November can be traced to prices for final demand foods, which jumped 3.1 percent.

The indexes for final demand goods less foods and energy and for final demand energy both increased 0.2 percent. 

Product detail: A quarter of the November rise in prices for final demand goods is attributable to a 54.6-percent jump in the index for chicken eggs. Prices for fresh and dry vegetables, fresh fruits and melons, processed poultry, non-electronic cigarettes, and residential electric power also increased. In contrast, the index for oilseeds declined 4.7 percent. Prices for diesel fuel and for primary basic organic chemicals also decreased. (See table 2.)

Final demand services: The index for final demand services rose 0.2 percent in November, the fourth consecutive increase. Leading the advance in November, margins for final demand trade services moved up 0.8 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) The index for final demand services less trade, transportation, and warehousing rose 0.1 percent. Conversely, prices for final demand transportation and warehousing services fell 0.5 percent.

Product detail: Over one-third of the advance in prices for final demand services can be traced to margins for machinery and vehicle wholesaling, which increased 1.8 percent. The indexes for securities brokerage, dealing, and investment advice; automotive fuels and lubricants retailing; food wholesaling; food and alcohol retailing; and apparel, footwear, and accessories retailing also rose. In contrast, prices for airline passenger services declined 2.1 percent. The indexes for guestroom rental and for computer hardware, software, and supplies retailing also decreased.

Intermediate Demand by Commodity Type

Within intermediate demand in November, prices for processed goods were unchanged, the index for unprocessed goods rose 0.6 percent, and prices for services fell 0.3 percent. (See tables B and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate demand was unchanged in November following a 0. 6-percent advance in October. In November, a 0.1-percent increase in prices for processed materials less foods and energy and a 0.9-percent rise in the index for processed foods and feeds offset a 1.2-percent decline in prices for processed energy goods. For the 12 months ended in November, the index for processed goods for intermediate demand moved down 0.5 percent.

Product detail: Within processed goods for intermediate demand in November, the index for particleboard and fiberboard jumped 11.4 percent. Prices for processed poultry; structural, architectural, and pre-engineered metal products; thermoplastics resins and plastics materials; and residual fuels also moved higher. Conversely, the index for diesel fuel fell 2.1 percent. Prices for primary basic organic chemicals, commercial electric power, industrial electric power, and prepared animal feeds also declined.

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate demand rose 0.6 percent in November after increasing 2.4 percent in October. Leading the November advance, prices for unprocessed foodstuffs and feedstuffs jumped 2.9 percent. The index for unprocessed nonfood materials less energy moved up 0.4 percent. In contrast, prices for unprocessed energy materials decreased 2.0 percent. For the 12 months ended in November, the index for unprocessed goods for intermediate demand fell 1.9 percent.

Product detail: A major factor in the November rise in prices for unprocessed goods for intermediate demand was the index for slaughter barrows and gilts, which increased 23.0 percent. Prices for ungraded chicken eggs, corn, strawberries, natural gas, and aluminum base scrap also moved higher. Conversely, the crude petroleum index decreased 3.3 percent. Prices for raw milk and for nonferrous
metal ores also declined.

Services for intermediate demand: The index for services for intermediate demand decreased 0.3 percent in November, the largest drop since moving down 0.4 percent in June 2022. The November decline can be attributed to prices for services less trade, transportation, and warehousing for intermediate demand, which fell 0.6 percent. In contrast, the indexes for trade services for intermediate demand and for  transportation and warehousing services for intermediate demand rose 0.3 percent and 0.1 percent, respectively. For the 12 months ended in November, prices for services for intermediate demand increased 3.0 percent.

Product detail: Three-fourths of the November decline in the index for services for intermediate demand can be traced to a 5.1-percent decrease in prices for business loans (partial). The indexes for broadcast and network television advertising time sales; gross rents for retail properties; services related to securities brokerage and dealing (partial); metals, minerals, and ores wholesaling; and airline passenger services also moved lower. Conversely, margins for food wholesaling increased 1.6 percent. The indexes for securities brokerage, dealing, and investment advice and for courier, messenger, and U.S. postal services also rose.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: Prices for stage 4 intermediate demand were unchanged in November after rising 0.3 percent in October. In November, a 0.4-percent advance in the index for total goods inputs to stage 4 intermediate demand offset a 0.3-percent decline in prices for total services inputs. (See table D.) Increases in the indexes for corn; securities brokerage, dealing, and investment advice; food  wholesaling; structural, architectural, and pre-engineered metal products; and particleboard and fiberboard offset decreases in prices for business loans (partial), gross rents for retail properties, services related to securities brokerage and dealing (partial), commercial electric power, and industrial electric power. For the 12 months ended in November, the index for stage 4 intermediate demand advanced 2.3 percent.

Stage 3 intermediate demand: The index for stage 3 intermediate demand increased 0.1 percent in November after rising 0.2 percent in October. In November, prices for total goods inputs to stage 3 intermediate demand moved up 0.5 percent. Conversely, the index for total services inputs edged down 0.1 percent. Higher prices for slaughter barrows and gilts; ungraded chicken eggs; corn; courier, messenger, and U.S. postal services; and cable network advertising time sales outweighed declines in the indexes for business loans (partial), raw milk, primary basic organic chemicals, and broadcast and network television advertising time sales. For the 12 months ended in November, prices for stage 3 intermediate demand moved up 1.3 percent, the largest increase since rising 2.2 percent for the 12 months ended in July.

Stage 2 intermediate demand: The index for stage 2 intermediate demand declined 0.8 percent in November after rising 1.4 percent in October. In November, prices for total goods inputs to stage 2 intermediate demand fell 1.1 percent and the index for total services inputs decreased 0.7 percent. Declining prices for crude petroleum, business loans (partial), broadcast and network television advertising time sales, oilseeds, primary basic organic chemicals, and liquified petroleum gas outweighed advances in the indexes for natural gas, food wholesaling, and automotive fuels and lubricants retailing. For the 12 months ended in November, prices for stage 2 intermediate demand fell 0.2 percent.

Stage 1 intermediate demand: The index for stage 1 intermediate demand fell 0.1 percent in November after rising 0.3 percent in October. In November, prices for total services inputs to stage 1 intermediate demand decreased 0.3 percent, while the index for total goods inputs was unchanged. Lower prices for gross rents for retail properties, primary basic organic chemicals, guestroom rental, diesel fuel, and  broadcast and network television advertising time sales outweighed increases in the indexes for securities brokerage, dealing, and investment advice; corn; structural, architectural, and pre-engineered metal products; and residual fuels. For the 12 months ended in November, prices for stage 1 intermediate demand rose 0.5 percent.

________________
The Producer Price Index for December 2024 is scheduled to be released on Tuesday, January 14, 2025,
at 8:30 a.m. (ET).

*****

Recalculated Relative Importance Figures and Seasonal Adjustment Factors to be
Available on February 13, 2025

Each year with the release of PPI data for January, relative importance figures and seasonal adjustment factors are recalculated to reflect price movements from the just-completed calendar year. The following information will be released on February 13, 2025, at 8:30 AM eastern time, in conjunction with the release of PPI data for January 2025, and will be available on the PPI website at www.bls.gov/ppi/tables/.

Relative Importance Figure Tables for December 2024:

* Final demand by individual commodities
* Final demand by component series
* Individual commodities of intermediate demand by commodity type
* Component series of intermediate demand by commodity type
* Individual commodities of intermediate demand by production flow
* Component series of intermediate demand by production flow
* Commodities, all levels
* Wherever-provided services and construction

Seasonal Factor Update:
* Direct seasonal factors for PPI commodity indexes for 2025
* Recalculated seasonal factors for the last 5 years (2020-2024) for PPI commodity indexes
* Recalculated seasonal factors for the last 5 years (2020-2024) for PPI Final Demand-
Intermediate Demand indexes

Recalculated seasonal index data for 2020-2024 for the Final Demand-Intermediate Demand and commodity indexes also will be posted to the PPI database on the BLS website on February 13,
2025, at 8:30 AM eastern time.