Producer Price Index August 2005
Producer Price Indexes -- August 2005
The Producer Price Index PPI of the Bureau of Labor Statistics (BLS)
is a family of indexes that measure the average change over time in
the prices received by domestic producers of goods and services. PPIs
measure price change from the perspective of the seller. This contrasts
with other measures, such as the Consumer Price Index ,CPI. CPIs measure
price change from the purchaser's perspective. Sellers' and purchasers'
prices can differ due to government subsidies, sales and excise taxes, and
distribution costs. Source: Technical Notes for the PPI
The Producer Price Index for Finished Goods rose 0.6 percent in
August, seasonally adjusted, the Bureau of Labor Statistics of the U.S.
Department of Labor reported today. This increase followed a 1.0-percent
gain in July and no change in June. At the earlier stages of processing,
prices received by manufacturers of intermediate goods advanced 0.7
percent, after moving up 1.0 percent in the preceding month. The crude
goods index climbed 2.3 percent in August, following a 6.7-percent rise in
July. See table A.
Hurricane Katrina
Hurricane Katrina struck Florida and the Gulf Coast after the Producer
Price Index's August pricing date, and therefore did not affect the PPI in
August. The PPI pricing date for September 2005 is Tuesday, September 13.
Table A Removed: See August 2005 Producer Price Index
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Prices for capital equipment decreased 0.1 percent in August,
following a 0.5-percent rise in the preceding month. The civilian aircraft
index showed no change, after increasing 1.0 percent in July. Prices for
passenger cars, commercial furniture, and communication and related
equipment turned down, following gains in the prior month. The indexes for
light motor trucks and heavy motor trucks advanced less than they had in
July. Alternatively, railroad equipment prices moved up 0.9 percent in
August, after dropping 0.6 percent in the previous month. The indexes for
agricultural machinery and equipment and for metal cutting machine tools
also turned up, following declines a month earlier. Electronic computer
prices fell less in August than in the prior month, while the index for
pumps, compressors, and equipment went up, after showing no change in July.
Subsequent to a 4.4-percent increase in July, prices for finished
energy goods rose 3.7 percent in August. The residential natural gas index
moved up 2.5 percent, compared with a 3.7-percent gain in the previous
month. The rates of increase in the indexes for gasoline and residential
electric power also slowed from July to August, and home heating oil prices
fell, after climbing in the prior month. By contrast, the liquefied
petroleum gas index jumped 10.7 percent in August, following a 5.6-percent
rise in the preceding month. Prices for diesel fuel and kerosene also
advanced more than they had in July, while the finished lubricants index
turned up in August.
Prices for finished consumer foods decreased 0.3 percent for the
second consecutive month. In August, declining prices for beef and veal,
eggs for fresh use, dairy products, fresh fruits and melons, and roasted
coffee outweighed rising prices for pork, processed young chickens, fresh
and dry vegetables, soft drinks, and finfish and shellfish.
Intermediate goods
The Producer Price Index for Intermediate Materials, Supplies, and
Components advanced 0.7 percent in August, following a 1.0-percent gain in
July. Most of this slower rate of increase can be attributed to prices for
intermediate energy goods, which rose less in August than they had a month
earlier. The index for intermediate foods and feeds turned down, after
moving up in July. By contrast, prices for materials and components for
construction were unchanged in August, after falling in the previous month.
The materials for nondurable manufacturing index increased slightly more
than it had in July, while materials for durable manufacturing prices fell
slightly less than in the preceding month. In August, the index for
intermediate goods excluding foods and energy decreased 0.1 percent, its
fourth consecutive monthly decline. See table B.
Prices for intermediate energy goods climbed 3.3 percent in August,
following a 5.2-percent advance in July. The gasoline index rose 9.5
percent in August, compared with a 10.9-percent gain a month earlier.
Prices for residual fuel and commercial natural gas also went up at slower
rates than they had in July. The indexes for jet fuels, commercial
electric power, and home heating oil turned down in August, after moving up
in the prior month. Alternatively, diesel fuel prices increased 3.1
percent, following a 0.2-percent advance in July. The indexes for
liquefied petroleum gas and natural gas to electric utilities also rose
more in August than in the previous month. See table 2.
The index for intermediate foods and feeds declined 0.4 percent in
August, after increasing 0.9 percent in July. Prices for prepared animal
feeds fell 1.6 percent, subsequent to a 2.7-percent jump in the prior
month. The dairy products index also turned down in August. Prices for
beef and veal and for flour decreased at faster rates than in July, while
the index for processed young chickens rose less than it had in the
previous month. By contrast, pork prices advanced 4.8 percent in August,
compared with a 0.6-percent drop a month earlier. The indexes for
shortening and cooking oils, sausages and deli meats, and refined sugar and
byproducts also moved up, following declines in July.
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The index for materials and components for construction was unchanged
in August, after falling 0.2 percent in July. Prices for asphalt felts and
coatings jumped 8.5 percent, following no change in the preceding month.
The indexes for building paper and board and for steel mill products
declined less in August than they had a month earlier. Prices for gypsum
products, nonferrous wire and cable, and paving mixtures and blocks rose
more than they had in July. Alternatively, prices for concrete products
advanced 0.6 percent, following a 1.9-percent increase in July. The
plastic construction products index decreased at a faster rate in August
compared with the prior month, while prices for millwork moved down after
rising in July.
The materials for nondurable manufacturing index climbed 0.2 percent
in August, following a 0.1-percent advance in the preceding month. In
August, rising prices for primary basic organic chemicals, inedible fats
and oils, phosphates, paint materials, and synthetic fibers outweighed
falling prices for paperboard, intermediate basic organic chemicals,
plastic resins and materials, and processed yarns and threads.
The materials for durable manufacturing index declined 0.8 percent in
August, after moving down 0.9 percent in July. In August, deceasing prices
for both hot and cold rolled steel sheet and strip; cold finished steel
bars; hot rolled steel bars, plates, and structural shapes; aluminum mill
shapes; building paper and board; and plywood more than offset increasing
prices for primary nonferrous metals, copper and brass mill shapes,
semifinished steel mill products, and prepared paint.
Crude goods
The Producer Price Index for Crude Materials for Further Processing
rose 2.3 percent in August, following a 6.7-percent advance in July.
Prices for crude energy materials increased less in August than in the
prior month. The index for crude foodstuffs and feedstuffs turned down,
after remaining unchanged in July. By contrast, prices for basic
industrial materials increased more than in the previous month. See table
B.
The index for crude energy materials gained 3.8 percent in August,
after climbing 12.8 percent in July. Prices for natural gas rose 4.6
percent, following a 14.9-percent surge in the previous month. Crude
petroleum prices went up 3.7 percent in August, after jumping 13.1 percent
in July. The coal index moved down 0.8 percent, after edging up 0.3
percent a month earlier. See table 2.
The index for crude foodstuffs and feedstuffs declined 1.4 percent in
August, after remaining unchanged in July. The fluid milk index decreased
3.5 percent in August, compared with a 6.2-percent increase in the prior
month. Prices for corn and soybeans also turned down, following gains in
July. The indexes for Irish potatoes for processing and unprocessed
finfish advanced less in August than they had a month earlier. By
contrast, the index for slaughter cattle fell 2.2 percent, following a 3.9-
percent decline in July. Prices for wheat also declined less in August
than they had a month earlier. The indexes for slaughter broilers and
fryers and for fresh vegetables ,except potatoes, turned up, following
declines in July. Prices for slaughter hogs increased at more than they
had in the previous month.
Prices for crude nonfood materials less energy advanced 4.6 percent in
August, following a 3.1-percent gain in July. Most of this acceleration is
attributable to the index for iron and steel scrap, which jumped 19.7
percent following a 2.7-percent advance in the prior month. The indexes
for gold ores and for construction sand, gravel, and crushed stone also
increased at faster rates in August, compared with July. Prices for
pulpwood turned up, after falling a month earlier. Conversely, the index
for copper ores decreased 3.6 percent, after climbing 20.7 percent in July.
Prices for raw cotton and miscellaneous roundwood products also turned
down, after rising in the previous month. The index for copper base scrap
increased less in August than it had a month earlier, and prices for iron
ore were unchanged, after advancing in July.
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Net output price indexes for mining, manufacturing, and services industries
Mining. The Producer Price Index for the Net Output of Total Mining
Industries advanced 3.6 percent in August, after rising 10.4 percent in the
preceding month. (Net output price indexes are not seasonally adjusted.)
This slower rate of increase is mostly due to prices received by the crude
petroleum and natural gas extraction industry, which moved up 5.3 percent,
following a 13.3-percent gain in July. The industry indexes for natural
gas liquid extraction and for oil and gas well drilling also rose less than
they had in the prior month. Prices paid to miners of copper ore and
nickel ore, underground bituminous coal, and phosphate rock fell in August,
after rising a month earlier. By contrast, prices received by the gold ore
mining industry advanced 5.0 percent, compared with a 0.2-percent gain in
July. The industry indexes for oil and gas operations support activities
and for crushed and broken granite mining and quarrying turned up, after
falling a month earlier. In August, the Producer Price Index for Total
Mining Industries was 201.1 ,December 1984=100,, 26.2 percent above its
year-ago level.
Manufacturing. The Producer Price Index for the Net Output of Total
Manufacturing Industries rose 0.5 percent in August, after climbing 0.9
percent in the prior month. Leading this deceleration, prices received by
the petroleum and coal products manufacturing industry group advanced 5.1
percent, following an 8.4-percent gain in July. The industry group indexes
for transportation equipment, food manufacturing, computer and electronic
products, and furniture and related product manufacturing turned down in
August, after rising in the preceding month. Conversely, prices received
by the chemical manufacturing industry group turned up 0.3 percent,
following a 0.1-percent decline in the previous month. The industry group
index for machinery rose in August, after showing no change a month
earlier. Prices received by manufacturers of beverages and tobacco turned
up, following declines in July. In August, the Producer Price Index for
Total Manufacturing Industries was 151.6 December 1984=100, 5.5 percent
above its year-ago level.
Services. Among services industries in August, higher prices were received
by investment banking and securities dealers, lessors of nonresidential
buildings except miniwarehouses, employee leasing services, direct
property and casualty insurance carriers, and offices of certified public
accountants. Alternatively, lower prices were paid to the industries for
scheduled passenger air transportation, commercial banking, cellular and
other wireless services, and hotels and motels excluding casinos.
Source: Bureau of Labor Statistics
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