December '05 U.S. Producer Price Index
Producer Price Indexes -- December 2005
Source: U.S. Bureau of Labor Statistics as on January 13, 2006
The Producer Price Index for Finished Goods rose 0.9 percent in December, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This increase followed a 0.7-percent decline in November and a 0.7-percent gain in October. Prices for finished goods other than foods and energy advanced 0.1 percent in December, the same rate as in November. At the earlier stages of processing, the intermediate goods index rose 0.2 percent in December, following a 1.2- percent decrease in the prior month, while prices for crude goods moved down 2.3 percent, after falling 1.2 percent in November. (See table A.)
Table Data has been removed for formatting reasons. Please refer to the Dec05 PPI PDF for complete infromation.
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The December upturn in finished goods prices was led by the index for energy goods, which climbed 3.1 percent after dropping 4.0 percent in the preceding month. Larger price increases for finished consumer foods and an upturn in the index for capital equipment also contributed to this turnaround. By contrast, prices for finished consumer goods other than foods and energy moved up at a 0.1-percent rate in December, compared with a 0.2-percent increase in November.
Before seasonal adjustment, the Producer Price Index for Finished Goods advanced 0.3 percent in December to 158.8 (1982 = 100). From December 2004 to December 2005, finished goods prices rose 5.4 percent, following a 4.2-percent increase in 2004. The index for finished energy goods climbed 23.9 percent in 2005, after moving up 13.4 percent in the preceding calendar year. Conversely, prices for finished goods other than foods and energy rose 1.7 percent in 2005, following a 2.3-percent gain in 2004. The finished consumer foods index also went up at a slower rate in 2005 than it had in the previous year--1.4 and 3.1 percent, respectively. At the earlier stages of processing, prices received by manufacturers of intermediate goods advanced 8.4 percent in 2005, compared with a 9.2- percent increase in 2004, while the crude goods index jumped 22.1 percent, after rising 17.4 percent a year earlier. (See summary table below.)
Summary of December-to-December, 9-month, and 3-month seasonally adjusted annual rates for
selected stages of processing
Table Data has been removed for formatting reasons. Please refer to the Dec05 PPI PDF for complete infromation.
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Finished goods
The index for finished energy goods jumped 3.1 percent in December, following a 4.0-percent decline in November. Most of this upturn can be attributed to gasoline prices, which advanced 12.3 percent in December after falling 10.7 percent a month earlier. The indexes for liquefied petroleum gas, home heating oil, diesel fuel, and kerosene also increased, following decreases in November. By contrast, prices for residential electric power moved up 0.5 percent in December, compared with a 2.3- percent gain in the previous month. The index for residential natural gas declined 2.7 percent, after falling 0.5 percent in November. (See table
2.)
The index for finished consumer foods rose 0.9 percent in December, following a 0.5-percent advance in November. Prices for fresh and dry vegetables jumped 21.7 percent, after increasing 7.2 percent in the preceding month. The indexes for beef and veal and for pork also climbed at faster rates in December than a month earlier, while prices for processed young chickens fell less than they had in November. The indexes for finfish and shellfish and for processed turkeys turned up in December, while the dairy products index rose, following no change in the prior month. By contrast, soft drink prices declined 0.4 percent in December, after advancing 0.8 percent in November. The index for shortening and cooking oils also turned down, following an increase in the previous month. Prices for eggs for fresh use, fresh fruits and melons, and processed fruits and vegetables moved up at slower rates in December than they had in November.
Table B. Monthly and annual percent changes in selected price indexes for
intermediate goods and crude goods, seasonally adjusted
Table Data has been removed for formatting reasons. Please refer to the Dec05 PPI PDF for complete infromation.
The capital equipment index advanced 0.1 percent in December, after inching down 0.1 percent in November. Prices for communication and related equipment increased 0.6 percent, compared with a 0.3-percent decrease in the previous month. The indexes for metal cutting machine tools and for mining machinery and equipment also turned up in December, after falling a month earlier. Passenger car prices declined less in December than they had in the prior month, while the indexes for civilian aircraft and for integrating and measuring instruments rose more than in November. Conversely, prices for light motor trucks moved down 1.0 percent in December, following a 0.8-percent decrease in the previous month. The index for electronic computers also fell at a quicker rate than it had in November. Prices for agricultural machinery and equipment, as well as for tools, dies, jigs, fixtures, and industrial molds, turned down in December. The capital equipment index advanced 1.3 percent in 2005, after climbing 2.4 percent in 2004.
The index for finished consumer goods other than foods and energy edged up 0.1 percent in December, following a 0.2-percent gain in November. In December, rising prices for pharmaceutical preparations, newspaper circulation, tires, book publishing, and mobile homes slightly outweighed falling prices for light motor trucks, sanitary papers and health products, passenger cars, and sporting and athletic goods. The index for finished consumer goods other than foods and energy increased 1.9 percent in 2005, after advancing 2.2 percent in 2004.
Intermediate goods
The Producer Price Index for Intermediate Materials, Supplies, and Components increased 0.2 percent in December, following a 1.2-percent drop in November. Prices for intermediate foods and feeds turned up, after falling in the previous month. The indexes for intermediate energy goods and nondurable manufacturing materials fell less in December than in the preceding month. By contrast, the index for construction materials advanced at a slower rate in December than it had in the prior month, while prices for durable manufacturing materials increased at the same rate as in November. The increase in the index for intermediate goods less foods and energy slowed to 0.3 percent, after rising 0.5 percent a month earlier. (See table B.)
After decreasing 0.1 percent in November, prices for intermediate foods and feeds edged up 0.1 percent in December. The index for prepared animal feeds increased 0.4 percent in December, compared with a 1.3-percent decline a month earlier. Prices for beef and veal; natural, processed, and imitation cheese; and pork moved up at faster rates than they had in November. The index for processed young chickens declined less in December than in the preceding month. By contrast, prices for shortening and cooking oils moved down 4.9 percent in December, following a 0.2-percent gain in the prior month. The indexes for flour, fluid milk products, and snack chips also turned down, after climbing in November. Prices for refined sugar and byproducts advanced less in December than they had a month earlier. (See table 2.) From December 2004 to December 2005, the index for intermediate foods and feeds rose 2.1 percent, following a 2.3- percent decline in 2004.
Prices for intermediate energy goods declined 0.2 percent in December, compared with a 6.6-percent decrease in November. The jet fuels index fell 2.5 percent, after dropping 26.5 percent in the preceding month. Prices for gasoline, diesel fuel, home heating oil, and liquefied petroleum gas turned up, following declines in November. Alternatively, industrial electric power prices edged up 0.1 percent, after advancing 4.4 percent in November. The indexes for natural gas to electric utilities and industrial natural gas decreased more in December than they had a month earlier, while prices for commercial electric power increased less than in November. From December 2004 to December 2005, prices for intermediate energy goods advanced 26.5 percent, following a 15.8-percent gain in 2004.
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The index for materials for nondurable manufacturing inched down 0.1 percent in December, after falling 0.9 percent in November. Prices for primary basic organic chemicals declined 1.9 percent, following a 10.3- percent drop in the preceding month. The index for ethanol also decreased less in December than it had a month earlier. Prices for medicinal and botanical chemicals and for woodpulp moved up, after declining in November. Conversely, the index for plastic resins and materials fell 1.2 percent in December, following a 2.4-percent increase in the prior month. Prices for paperboard and gray fabrics also turned down, after rising in November. The index for nitrogenates rose less in December than it had in the preceding month. The index for materials for nondurable manufacturing climbed 7.5 percent in 2005, following a 13.7-percent gain in 2004.
The index for materials and components for construction moved up 0.6 percent in December, after rising 1.0 percent in November. Prices for plastic construction products increased 1.4 percent, compared with an 8.0- percent gain in the prior month. The indexes for concrete products and architectural paint coatings turned down, after rising in November. Prices for wiring devices, steel mill products, and asphalt felts and coatings increased less in December than they had in the prior month. By contrast, the plywood index edged down 0.2 percent, following a 15.0-percent drop in November. Prices for building paper and board, softwood lumber, and air conditioning and refrigeration equipment turned up in December, after declining a month earlier. During 2005, prices for materials and components for construction climbed 6.1 percent, following a 10.1-percent increase in the previous year.
Prices for materials for durable manufacturing advanced 1.6 percent in December, the same rate of increase as in November. The indexes for primary nonferrous metals; aluminum mill shapes; hot rolled steel bars, plates, and structural shapes; hot rolled steel sheet and strip; and copper and brass mill shapes moved up in December. These increases more than offset falling prices for cold rolled steel sheet and strip, semifinished steel mill products, plywood, and unprocessed filament yarns. In 2005, the index for materials for durable manufacturing climbed 6.1 percent, following an 18.3-percent jump in 2004.
Crude goods
The Producer Price Index for Crude Materials for Further Processing declined 2.3 percent in December, following a 1.2-percent fall in November. In December, prices for crude nonfood materials less energy were unchanged, after rising in the previous month, while prices for crude energy materials declined more than they had in November. By contrast, the crude foodstuffs and feedstuffs index increased more than it had a month earlier. (See table B.)
The index for basic industrial materials showed no change in December, after increasing 5.4 percent in November. Prices for iron and steel scrap decreased 4.4 percent, following an 18.8-percent advance in the preceding month. The indexes for copper base scrap; both hardwood and softwood logs, bolts, and timber; hides and skins; and phosphates also turned down in December. Prices for construction sand, gravel, and crushed stone increased at slower rates, compared to the previous month. By contrast, the gold ores index gained 11.9 percent, subsequent to a 1.1-percent decrease in November. The wastepaper index also turned up in December. The index for raw cotton declined less than it had in the prior month, while the rates of increase in prices for aluminum base scrap quickened from November to December. (See table 2.) In 2005, the basic industrial materials index advanced 4.8 percent, after rising 20.5 percent in 2004.
The crude energy materials index fell 5.4 percent in December, following a 4.2-percent decline in November. The index for natural gas fell 11.4 percent in December, after decreasing 1.3 percent in the prior month. By contrast, prices for crude petroleum gained 7.9 percent, following an 11.4-percent decline in November, while the index for coal showed no change, after edging down 0.1 percent in the previous month. In 2005, the crude energy materials index surged 44.8 percent, subsequent to a 35.9-percent climb in 2004.
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The crude foodstuffs and feedstuffs index advanced 2.8 percent in December, after rising 1.3 percent in November. In December, prices for slaughter cattle gained 4.1 percent, following a 1.5-percent increase in the preceding month. Similarly, prices for fresh and dry vegetables and for slaughter turkeys rose at faster rates than they had in November. The slaughter hogs, unprocessed finfish, and alfalfa hay indexes turned up in December. Alternatively, prices for slaughter broilers and fryers fell 6.2 percent in December, following a 2.9-percent decrease in the prior month. The index for fluid milk declined, after showing no change in November. Prices for soybeans and corn rose at slower rates, compared with the previous month. In 2005, the crude foodstuffs and feedstuffs index increased 1.4 percent, subsequent to a 2.6-percent decrease in 2004.
Net output price indexes for mining, manufacturing, and services industries
Mining. The Producer Price Index for the Net Output of Total Mining Industries fell 2.9 percent in December, following a 3.4-percent decline in the previous month. (Net output price indexes are not seasonally
adjusted.) Prices received by the natural gas liquid extraction industry decreased 0.6 percent, after moving down 2.5 percent in November. The industry indexes for gold ore mining, oil and gas operations support activities, and bituminous coal and lignite surface mining turned up, following declines in the preceding month. Prices received by the industry for oil and gas well drilling rose more than they had in November. Conversely, the industry index for crude petroleum and natural gas extraction decreased 7.2 percent in December, after falling 6.1 percent in the prior month. Prices received by the industries for support activities for coal mining; potash, soda, and borate mineral mining; and kaolin and ball clay mining turned down, compared with increases in November. The industry index for crushed and broken limestone mining and quarrying advanced less than it had in the previous month. In December, the Producer Price Index for the Net Output of Total Mining Industries was 238.1 (December 1984 = 100). Prices received by the mining sector advanced 40.7 percent in 2005, after increasing 31.2 percent a year ago.
Manufacturing. The Producer Price Index for the Net Output of Total Manufacturing Industries edged up 0.1 percent in December, after decreasing 2.4 percent in the previous month. Prices received by manufacturers of wood products increased 0.8 percent, compared with a 2.7-percent decline in the prior month. The industry group index for food manufacturing also turned up in December, while prices received by the industry groups for petroleum and coal products, transportation equipment, and computer and electronic products fell less than they had in November. Prices received by manufacturers of machinery rose, following no change in the preceding month. By contrast, prices received by the plastics and rubber products industry group inched down 0.1 percent in December, after advancing 3.3 percent in the prior month. The industry group index for beverages and tobacco also turned down, following increases in the preceding month. Prices received by the industry groups for chemicals, paper, and nonmetallic mineral products advanced at slower rates than they had in November. In December, the Producer Price Index for the Net Output of Total Manufacturing Industries was 152.8 (December 1984 = 100). For the 12 months ended December 2005, prices received by the manufacturing sector increased 5.4 percent, compared with a 5.3-percent rise in 2004.
Services. Among services industries, the industry index for commercial banking increased 0.5 percent in December, following a 4.4-percent gain in the previous month. Prices received by the industry for couriers also rose less than they had in November. The industry indexes for scheduled passenger air transportation, hotels and motels (excluding casinos), and offices of certified public accountants turned down, after moving up a month earlier. Alternatively, prices received by the industry for lessors of nonresidential buildings (excluding miniwarehouses) went up 1.7 percent, following a 4.0-percent decline in November. The industry indexes for investment banking and securities dealing, savings institutions, and casino hotels fell less in December than they had a month earlier. Prices received by the passenger car rental industry rose more than they had in November.
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Producer Price Index data for January 2006 are scheduled to be released on Friday, February 17, 2006, at 8:30 a.m. (EST).
Recalculated Seasonal Adjustment Factors and Relative Importance Figures to
be Available on
February 15, 2006
Each year with the release of PPI data for January, seasonal adjustment factors are recalculated to reflect price movements from the just-completed calendar year. This routine annual calculation may result in revisions to seasonally adjusted indexes for the previous 5 years. The following information will be available on February 15, 2006 (2 workdays prior to the release of PPI data for January 2006 on February 17):
Direct seasonal factors for commodity indexes for the year 2006,
Recalculated seasonal factors for the last 5 years (2001-2005) for the
commodity indexes,
Recalculated seasonal factors for the last 5 years (2001-2005) for the
stage-of-processing indexes.
In addition to recalculated seasonal factors, December 2005 relative importance figures also will be available on February 15, 2006.
To obtain this information, visit the PPI website at http://www.bls.gov/ppi/ or call the Division of Industrial Prices and Price Indexes, Section of Index Analysis and Public Information at (202) 691- 7705.
Technical Note
Brief Explanation of Producer Prices Indexes
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.
More than 8,000 PPIs for individual products and groups of products are released each month. PPIs are available for the products of virtually every industry in the mining and manufacturing sectors of the U.S. economy. New PPIs are gradually being introduced for the products of industries in the trade, finance, and services sectors of the economy.
More than 100,000 price quotations per month are organized into three sets of PPIs: (1) Stage-of-processing indexes; (2) commodity indexes; and
(3) indexes for the net output of industries and their products. The stage- of-processing structure organizes products by class of buyer and degree of fabrication. The commodity structure organizes products by similarity of end use or material composition. The entire output of various industries is sampled to derive price indexes for the net output of industries and their products.
Stage-of-Processing Indexes
Within the stage-of-processing system, finished goods are commodities that will not undergo further processing and are ready for sale to the final-demand user, either an individual consumer or business firm. Consumer foods include unprocessed foods such as eggs and fresh vegetables, as well as processed foods such as bakery products and meats. Other finished consumer goods include durable goods such as automobiles, household furniture, and appliances, as well as nondurable goods such as apparel and home heating oil. Capital equipment includes producer durable goods such as heavy motor trucks, tractors, and machine tools.
The stage-of-processing category for intermediate materials, supplies, and components consists partly of commodities that have been processed but require further processing. Examples of such semifinished goods include flour, cotton yarn, steel mill products, and lumber. The intermediate goods category also encompasses nondurable, physically complete items purchased by business firms as inputs for their operations. Examples include diesel fuel, belts and belting, paper boxes, and fertilizers.
Crude materials for further processing are products entering the market for the first time that have not been manufactured or fabricated and that are not sold directly to consumers. Crude foodstuffs and feedstuffs include items such as grains and livestock. Examples of crude nonfood materials include raw cotton, crude petroleum, coal, hides and skins, and iron and steel scrap.
Commodity Indexes
The commodity classification structure of the PPI organizes products by similarity of end use or material composition, disregarding industry of origin. Fifteen major commodity groupings (2-digit commodity codes) make up the All Commodities Index. Each major commodity grouping includes (in descending order of aggregation) subgroups (3-digit), product classes (4- digit), subproduct classes (6-digit), and individual items (8-digit). Nearly all 8-digit commodities under the traditional commodity coding system are now derived from corresponding industry-classified product indexes. In such instances, movements in the traditional commodity price indexes and corresponding percent changes will be virtually identical to their industry-based counterparts, even if their index levels differ.
Industry Net-Output Price Indexes
PPIs for the net output of industries and their products are grouped according to the North American Industry Classification System (NAICS). Prior to the release of January 2004, industry-based PPIs were published according to the Standard Industrial Classification (SIC) system. Industry price indexes are compatible with other economic time series organized by industry, such as data on employment, wages, and productivity. Table 5 of the PPI Detailed Report includes data for NAICS industries and industry groups (3-, 4-, 5-, and 6-digit codes); Census product classes (7- and
8-digits), products (9-digits), and more detailed subproducts (11-digits);
and, for some industries, indexes for other sources of revenue.
Indexes may represent one of three kinds of product indexes. Every industry has primary product indexes to show changes in prices received by establishments classified in the industry for products made primarily, but not necessarily exclusively, by that industry. The industry classification of an establishment is determined by which products comprise a plurality of its total shipment value. In addition, most industries have secondary product indexes that show changes in prices received by establishments classified in the industry for products chiefly made in some other industry. Finally, some industries have miscellaneous receipts indexes to show price changes in other sources of revenue received by establishments within the industry that are not derived from sales of their products, for example, resales of purchased materials, or revenues from parking lots owned by a manufacturing plant.
Data Collection
PPIs are based on selling prices reported by establishments of all sizes selected by probability sampling, with the probability of selection proportionate to size. Individual items and transaction terms from these firms are also chosen by probability proportionate to size. The BLS strongly encourages cooperating companies to supply actual transaction prices at the time of shipment to minimize the use of list prices. Prices submitted by survey respondents are effective on the Tuesday of the week containing the 13th day of the month. This survey is conducted primarily through the mail.
Price data are provided on a voluntary and confidential basis; only sworn BLS employees are allowed access to individual company price reports. BLS publishes price indexes instead of unit dollar prices. All PPIs are subject to revision 4 months after original publication to reflect the availability of late reports and corrections by respondents.
BLS periodically updates the PPI sample of survey respondents to better reflect current conditions when the structure, membership, technology, or product mix of an industry shifts significantly and to spread reporting burden among smaller firms. Results of these resampling efforts are incorporated into the PPI with the release of data for January and July.
As part of an ongoing effort to expand coverage to sectors of the economy other than mining and manufacturing, an increasing number of service sector industries have been introduced into the PPI. The following list of recently introduced industries includes the month and year in which an article describing the industry's content appeared in the PPI Detailed Report.
Weights
Weights for most traditional commodity groupings of the PPI, as well as weights for commodity-based aggregate indexes calculated using traditional commodity groupings, such as stage-of-processing indexes, currently reflect 1997 values of shipments as reported in the Census of Manufactures and other sources. From January 1996 through December 2001, PPI weights were derived from 1992 shipment values. Industry indexes also are now calculated with 1997 net output weights. This periodic update of the value weights used to calculate the PPI is done to more accurately reflect changes in production and marketing patterns in the economy. Net output values of shipments are used as weights for industry indexes. Net output values refer to the value of shipments from establishments within the industry to buyers outside the industry. However, weights for commodity price indexes are based on gross shipment values, including shipment values between establishments within the same industry. As a result, broad commodity grouping indexes, such as the PPI for All Commodities, are affected by the multiple counting of price change at successive stages of processing, which can lead to exaggerated or misleading signals about inflation. Stage-of-processing indexes partially correct this defect, but industry indexes consistently correct for this at all levels of aggregation. Therefore, industry and stage-of-processing indexes are more appropriate than broad commodity groupings for economic analysis of general price trends.
Price Index Reference Base
Effective with publication of January 1988 data, many important PPI series (including stage-of-processing groupings and most commodity groups and individual items) were placed on a new reference base, 1982=100. From 1971 through 1987, the standard reference base for most PPI series was 1967=100. Except for rounding differences, the shift to the new reference base did not alter any previously published percent changes for affected PPI series. (See "Calculating Index Changes," below.) The 1982 reference base is not used for commodity indexes with a base later than December 1981 or for industry net output indexes and their products.
For further information on the underlying concepts and methodology of the Producer Price Index, see chapter 14, "Producer Prices," in BLS Handbook of Methods (April 1997), Bulletin 2490. This document can be downloaded
from the BLS Web site at (http://www.bls.gov/opub/hom/homch14_itc.htm),
and reprints are available on request.
Calculating Index Changes
Each PPI measures price changes from a reference period which equals 100.0. An increase of 5.5 percent from the reference period in the Finished Goods Price Index, for example, is shown as 105.5. This change also can be expressed in dollars, as follows: Prices received by domestic producers of a sample of finished goods have risen from $100 in 1982 to $105.50. Likewise, a current index of 90.0 would indicate that prices received by producers of finished goods are 10 percent lower than they were in 1982.
Movements of price indexes from one month to another are usually expressed as percent changes, rather than as changes in index points. Index point changes are affected by the level of the index in relation to its base period, whereas percent changes are not. The following example shows the computation of index point and percent changes.
Index point change
Finished Goods Price Index 107.5
Less previous index 104.0
Equals index point change 3.5
Index percent change
Index point change 3.5
Divided by the previous index 104.0
Equals 0.034
Result multiplied by 100 0.034 × 100
Equals percent change 3.4
Seasonally Adjusted and Unadjusted Data
Because price data are used for different purposes by different groups, BLS publishes seasonally adjusted and unadjusted changes each month. Seasonally adjusted data are preferred for analyzing general price trends in the economy, because these data eliminate the effect of changes that normally occur at about the same time, and in about the same magnitude, every year-such as price movements resulting from normal weather patterns, regular production and marketing cycles, model changeovers, seasonal discounts, and holidays. For these reasons, seasonally adjusted data more clearly reveal underlying cyclical trends. Unadjusted data are of primary interest to users who need information that can be related to actual dollar values of transactions. Individuals requiring this information include marketing specialists, purchasing agents, budget and cost analysts, contract specialists, and commodity traders. It is the unadjusted data that are generally cited when escalating long-term contracts such as purchasing agreements or real estate leases. (See Escalation and Producer Price Indexes: A Guide for Contracting Parties, BLS Report 807, September 1991, available on request from the BLS.)
In 1998, the PPI implemented the X-12-ARIMA Seasonal Adjustment Method; prior to that year the PPI employed the X-11 method. Each year, the seasonal status of most commodity indexes is re-evaluated to reflect more recent price behavior. Industry net output indexes are not seasonally adjusted. For time series that exhibit seasonal pricing patterns, new seasonal factors are estimated and applied to the unadjusted data for the previous 5 years. These updated seasonally adjusted indexes replace the most recent 5 years of seasonal data.
Seasonal factors may be applied to series using either a direct or aggregative method. Generally, commodity indexes are seasonally adjusted using direct seasonal adjustment, which produces a more complete elimination of seasonal movements than the aggregative method. However, the direct seasonal adjustment process may not yield figures that possess additive consistency. Thus, a seasonally adjusted index for a broad category that is directly adjusted may not be logically consistent with all seasonally adjusted indexes for its components. Seasonal movements for stage-of-processing indexes are derived indirectly through an aggregative method that combines movements of a wide variety of subproduct class (6-
digit) series.
Seasonally adjusted indexes can become problematic when previously stable and predictable price patterns abruptly change. If the new pattern persists, the seasonal adjustment method will eventually reflect it adequately; if these patterns keep shifting, however, seasonally adjusted data will become chronically troublesome. This problem occurs relatively infrequently for farm and food-related products but has more often affected manufactured products such as automobiles and steel.
Since January 1988, the PPI has used Intervention Analysis Seasonal Adjustment methods to enhance the calculation of seasonal factors. With this technique, outlier values that may distort the seasonal pattern are removed from the data prior to applying the standard seasonal factor estimation procedure. For example, a possible economic cause for large price movements for petroleum-based products might have been the Persian Gulf War. In this case, intervention techniques allowed for better estimates of seasonally adjusted data. On the whole, very few series have required intervention. Out of nearly 900 seasonally adjusted series, only 16 interventions were performed in 1997.
For more information relating to seasonal adjustment methods, see (1) "Appendix A: Seasonal Adjustment Methodology at BLS," in the BLS Handbook of Methods (April 1997), Bulletin 2490 and (2) "Summary of Changes to the PPI's Seasonal Adjustment Methodology" in the January 1995 issue of Producer Price Indexes.
Producer Price Index Data Via the Internet
In 1995, the BLS began posting PPI series, news releases, and technical information to both a World Wide Web (WWW) site and a file transfer protocol (FTP) site. During the years following the introduction of PPI Internet services, usage of these sites eclipsed more traditional methods of data dissemination, such as subscriptions to the PPI Detailed Report. There were more than 1.6 million accesses of PPI series over the Internet during the 12 months ended December 31, 2003.
Retrieving PPI data from the PPI Website
PPI data can be obtained from the WWW address (http://www.bls.gov/ppi). Scrolling down the page to the "Get Detailed Statistics" header reveals
the following 5 methods of data retrieval:
Most Requested Series is a form-based application that allows the user to quickly obtain PPI time series data by selecting from two separate lists (commodity and industry) of the most commonly requested time series, including the All Commodities Index and the stage-of-processing indexes (for example, Finished Goods). Within each list, any one-or all-of the time series shown can be selected. A user can modify the date range and output options after executing the query, using the reformat button above the data output table.
Create Customized Tables is a form-based query application designed for users unfamiliar with the PPI coding structure. It guides a user through the PPI classification system by listing index titles and does not require knowledge of commodity or industry codes. Data retrieved are based on a query formulated by selecting data characteristics from lists provided. Two options are available to create customized tables, depending on a user's browser capability. The one-screen option is a JavaScript application that uses a single screen to guide a user through the available time series data. The second option is a multiple screen, nonJava-based application. Both methods allow a user to browse the PPI coding structure and select multiple series codes. Using the one-screen option, users can modify the date range and output options after executing the query using the reformat button above the data output table.
Series Report is a form-based application that uses formatted PPI time series identifiers (commodity or industry codes) as input in extracting data according to a specified set of date ranges and output options. This application provides the most efficient path for those users who are familiar with the format of PPI time series identifiers. Up to 300 indexes can be extracted at one time.
There are three basic formats for creating a unique PPI time series identifier. For commodity and stage-of-processing indexes, enter a "wpu" prefix (not seasonally adjusted) or a "wps" prefix (seasonally adjusted) in combination with a commodity-based code to create a series identifier.
Commodity code Will provide data for:
wps063 Drugs and pharmaceuticals, seasonally adjusted
wpu063803 Pharmaceutical preparations, cardiovascular system
wpusop3000 Finished goods, not seasonally adjusted
For a current industry-based price index organized according to the North American Industry Classification System (NAICS), enter the prefix "pcu" followed by the industry-product code. The series identifier for products primary to an industry include 12 numeric digits, the six-digit industry code is repeated, and up to seven additional digits of product detail. Dashes are used as place holders for higher-level industry group codes.
Industry-product code, Will provide data for:
Current NAICS series
pcu325---325--- Chemical manufacturing, not seasonally adjusted
pcu336110336110 Automobile and light duty motor vehicle manufacturing
pcu621111621111411 Offices of physicians, one and two physician practices
and single specialty group practices, general/family
practices
To identify a discontinued industry-product code based on the Standard Industrial Classification (SIC), enter a "pdu" prefix and "#" between the fourth and fifth characters of the product code. A series identifier for the discontinued dataset uses underscores as placeholders to complete a reference to an SIC industry group code of less than four digits. (All PPI industry-based indexes organized by SIC were discontinued with the introduction of the NAICS.) In all cases, no spaces are permitted.
Industry-product code, Will provide data for:
Discontinued SIC series
pdu28__# Chemicals and allied products, not seasonally adjusted
pdu331_# Blast furnaces, steel works, and rolling and
finishing mills, not seasonally adjusted
pdu3711#111 Passenger cars
Flat Files and the FTP server are best suited for those users requiring access to either a large volume of time series data or other PPI-related documentation (such as, seasonal factor and relative importance tables). The FTP site can be accessed at (ftp://ftp.bls.gov) or directly from the links on the "Get Detailed Statistics" page or the PPI homepage. Data and documentation available for download include:
Data/Documentation Directory:
NAICS Current Series /pub/time.series/pc
SIC Discontinued Series /pub/time.series/pd
Commodity Series /pub/time.series/wp
Special Requests /pub/special.requests/ppi
Latest News Release /pub/news.release/ppi.txt
The FTP site maintains files to help with searches and downloads.
These files are centrally located in the /pub/doc directory. Within this directory, go to the overview.txt file for an overview relating to all BLS data available through the FTP site. For commodity-based PPI data (which appear in tables 1, 2, 3, 6, 7, and 8 of the PPI monthly detailed report and tables 1, 2, 3, and 5 of the monthly news release), the program help file is wp.txt. For current industry-based PPI data based on the NAICS (which appear in tables 4, 5, and 9 of the monthly PPI report and table 4 of the monthly news release), the file is pc.txt. For industry-based SIC time series that have been discontinued, go to pd.txt. (These and other help files are also maintained within each of the five directories listed
above.)
Other Sources of PPI Data
PPI data can also be accessed via the BLS homepage (http://www.bls.gov). After clicking the "Get Detailed Statistics" link at the top of the homepage a chart appears listing all of the available BLS programs. The following four methods are available for PPI data: Most requested statistics, create customized tables (one screen or multiple screens), and flat files. Additional sources of BLS data also are
accessible from this page including: Economic news releases, series report, and economy at a glance.
Additional information
The PPI homepage (http://www.bls.gov/ppi) contains additional information regarding PPI data and methodology. The top section of the homepage provides PPI news releases, both current and archived, as well as general PPI information. The "Tables Created by BLS" section found beneath the statistics section provides relative importance and seasonal factor tables. The remaining sections offer special notices and publications pertaining to PPI methodology and applications.
For questions or comments regarding PPI data classification, methodology, or data availability on the Internet, call or e-mail the Section of Index Analysis and Public Information directly at (202) 691-7705 or ppi-info@bls.gov. Data also can be obtained by calling the national fax- on-demand service at (202) 691-6325. This service enables customers to request faxes of BLS data 24 hours a day, 7 days a week.
Table 1. Producer price indexes and percent changes by stage of processing
(1982=100)
Table Data has been removed for formatting reasons. Please refer to the Dec05 PPI PDF for complete infromation.
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