EconomyProducer Price Index

Producer Price Index News Release summary – 2023 M02 Results – TheFinanceHeadline

Producer Price Index News Release summary

Transmission of material in this release is embargoed until                          USDL 23-0486
8:30 a.m. (ET) Wednesday, March 15, 2023
Technical information:      (202) 691-7705  *  ppi-info@bls.gov  *  www.bls.gov/ppi
Media contact:              (202) 691-5902  *  PressOffice@bls.gov   

                          PRODUCER PRICE INDEXES - FEBRUARY 2023

The Producer Price Index for Final Demand decreased 0.1 percent in February, seasonally 
adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices advanced 0.3 
percent in January and declined 0.2 percent in December 2022. (See table A.) On an unadjusted 
basis, the final demand index rose 4.6 percent for the 12 months ended in February.
In February, the decline in the final demand index was led by prices for final demand goods, 
which fell 0.2 percent. The index for final demand services edged down 0.1 percent.
The index for final demand less foods, energy, and trade services increased 0.2 percent in 
February after rising 0.5 percent in January. For the 12 months ended in February, prices for 
final demand less foods, energy, and trade services advanced 4.4 percent.
Final demand goods: The index for final demand goods fell 0.2 percent in February following a 1.2-
percent advance in January. A 2.2-percent decline in prices for final demand foods was a major 
factor in the February decrease. The index for final demand energy moved down 0.2 percent. In 
contrast, prices for final demand goods less foods and energy rose 0.3 percent.
Product detail: Over 80 percent of the February decline in the index for final demand goods can be 
attributed to a 36.1-percent drop in prices for chicken eggs. The indexes for residential natural gas, 
fresh and dry vegetables, diesel fuel, home heating oil, and primary basic organic chemicals also fell. 
Conversely, prices for iron and steel scrap advanced 10.6 percent. The indexes for gasoline and for 
sugar and confectionery products also increased. (See table 2.)
Final demand services: The index for final demand services inched down 0.1 percent in February, 
the same as in January. Leading the February decline, margins for final demand trade services fell 0.8 
percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) Prices for 
final demand transportation and warehousing services decreased 1.1 percent. In contrast, the index 
for final demand services less trade, transportation, and warehousing advanced 0.3 percent.
Product detail: A major factor in the February decrease in prices for final demand services was 
margins for machinery and vehicle wholesaling, which fell 3.9 percent. The indexes for chemicals 
and allied products wholesaling, automobiles and automobile parts retailing, guestroom rental, and 
airline passenger services also declined. Conversely, prices for outpatient care (partial) rose 0.5 
percent. The indexes for food and alcohol retailing; securities brokerage, dealing, investment advice, 
and related services; and loan services (partial) also increased. 

Table A. Monthly and 12-month percent changes in selected final demand price indexes, seasonally adjusted
MonthTotal
final
demand
Final
demand
less
foods,
energy,
and
trade
Final demand goodsFinal demand servicesChange
in final
demand
from 12
months
ago
(unadj.)
Change
in final
demand
less
foods,
energy,
and
trade
from 12
mo. ago
(unadj.)
TotalFoodsEnergyLess
foods
and
energy
TotalTradeTransportation
and
warehousing
Other

2022

Feb.

0.90.21.91.85.40.80.41.61.7-0.310.46.7

Mar.

1.60.92.22.35.71.01.32.35.70.311.77.1

Apr.

0.60.51.41.61.91.20.10.22.0-0.211.26.8

May

0.80.51.40.74.00.70.40.62.50.111.16.8

June

0.90.32.1-0.18.40.50.30.50.80.111.26.4

July

-0.30.2-1.61.3-8.30.20.30.8-0.30.19.75.8

Aug.

0.00.2-0.8-0.2-4.40.20.51.0-1.10.48.75.6

Sept.

0.30.30.51.51.00.00.2-0.3-0.20.58.55.6

Oct.(1)

0.30.20.40.71.50.00.20.20.00.28.25.5

Nov.(1)

0.30.40.33.3-2.20.30.30.2-0.50.57.34.9

Dec.(1)

-0.20.2-1.4-0.9-6.30.10.40.70.20.36.54.7

2023

Jan.(1)

0.30.51.2-1.25.20.6-0.1-1.1-1.20.65.74.4

Feb.

-0.10.2-0.2-2.2-0.20.3-0.1-0.8-1.10.34.64.4

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for October 2022 through January 2023 have been revised to reflect the availability of late reports and corrections by respondents.

Intermediate Demand by Commodity Type
Within intermediate demand in February, prices for processed goods fell 0.4 percent, the index for 
unprocessed goods declined 3.8 percent, and prices for services increased 0.3 percent. (See tables B 
and C.)
Processed goods for intermediate demand: Prices for processed goods for intermediate demand 
moved down 0.4 percent in February following a 1.1-percent increase in January. Over three-quarters 
of the decrease can be traced to the index for processed energy goods, which fell 1.6 percent. Prices 
for processed foods and feeds declined 1.9 percent. In contrast, the index for processed materials less 
foods and energy advanced 0.1 percent. For the 12 months ended in February, prices for processed 
goods for intermediate demand rose 2.1 percent.
Product detail: Over half of the February decline in the index for processed goods for intermediate 
demand can be attributed to prices for diesel fuel, which fell 4.7 percent. The indexes for industrial 
electric power, primary basic organic chemicals, agricultural chemicals and chemical products, 
commercial natural gas, and steel pipe and tube also moved lower. Conversely, prices for 
thermoplastic resins and materials rose 1.8 percent. The indexes for gasoline and for sugar and 
confectionery products also moved higher. 
Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate 
demand fell 3.8 percent in February following a 6.3-percent decrease in January. Leading the 
February decline, prices for unprocessed energy materials moved down 9.1 percent. The index for 
unprocessed foodstuffs and feedstuffs fell 1.1 percent. In contrast, prices for unprocessed nonfood 
materials less energy advanced 1.2 percent. For the 12 months ended in February, the index for 
unprocessed goods for intermediate demand decreased 10.9 percent, the first 12-month decline since 
October 2020.
Product detail: A major factor in the decrease in prices for unprocessed goods for intermediate 
demand was the index for natural gas, which dropped 41.4 percent. Prices for ungraded chicken eggs, 
raw milk, fresh fruits and melons, fresh vegetables (except potatoes), and slaughter cattle also 
declined. Conversely, the index for iron and steel scrap increased 10.6 percent. Prices for crude 
petroleum and for slaughter chickens also advanced.

Table B. Monthly and 12-month percent changes in selected intermediate demand price indexes for goods by commodity type, seasonally adjusted
MonthProcessed goods for intermediate demandUnprocessed goods for intermediate demand
TotalFoods
and
feeds
Energy
goods
Less
foods
and
energy
Total,
change
from 12
months
ago
(unadj.)
TotalFoodstuffs
and
feedstuffs
Energy
materials
Nonfood
materials
less
energy
Total,
change
from 12
months
ago
(unadj.)

2022

Feb.

1.42.04.90.323.39.64.018.22.333.5

Mar.

2.12.06.60.922.12.47.3-4.38.443.3

Apr.

2.03.24.21.222.05.83.89.32.850.1

May

2.21.24.41.721.65.40.314.6-4.246.4

June

1.90.18.40.121.94.8-0.711.1-1.850.3

July

-2.10.5-8.0-0.417.2-8.8-1.1-14.2-5.932.5

Aug.

-1.2-0.2-3.7-0.614.34.8-0.910.90.536.9

Sept.

-0.1-0.12.0-0.812.9-3.11.3-6.6-0.629.2

Oct.(1)

-0.2-0.21.5-0.810.1-9.7-0.7-18.1-4.19.3

Nov.(1)

-0.50.8-1.8-0.27.6-3.10.0-6.7-0.73.5

Dec.(1)

-2.5-0.6-9.9-0.34.91.6-0.25.0-1.310.7

2023

Jan.(1)

1.10.25.30.14.0-6.3-5.6-11.01.61.1

Feb.

-0.4-1.9-1.60.12.1-3.8-1.1-9.11.2-10.9

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for October 2022 through January 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 moved up 
0.3 percent in February following a 0.7-percent increase in January. The February advance can 
be traced to a 0.6-percent rise in prices for services less trade, transportation, and warehousing 
for intermediate demand. In contrast, the indexes for trade services for intermediate demand and 
for transportation and warehousing services for intermediate demand fell 0.7 percent and 0.2 
percent, respectively. For the 12 months ended in February, prices for services for intermediate 
demand increased 6.0 percent.
Product detail: Leading the advance in the index for services for intermediate demand, prices for 
loan services (partial) rose 8.3 percent. The indexes for securities brokerage, dealing, investment 
advice, and related services; legal services; staffing services; warehousing, storage, and related 
services; and gross rents for office buildings also moved higher. Conversely, margins for 
chemicals and allied products wholesaling decreased 5.7 percent. Prices for gross rents for retail 
properties and for arrangement of freight and cargo transportation also declined. 

Table C. Monthly and 12-month percent changes in selected intermediate demand price indexes for services by commodity type, seasonally adjusted
MonthServices for intermediate demand
TotalTradeTransportation
and
warehousing
OtherTotal, change
from 12 months
ago (unadj.)

2022

Feb.

0.31.10.6-0.17.8

Mar.

1.24.22.00.08.4

Apr.

0.81.01.70.68.0

May

0.60.80.50.57.9

June

-0.3-0.50.1-0.36.3

July

0.30.21.10.15.9

Aug.

0.6-0.9-0.31.36.0

Sept.

0.50.1-0.40.86.2

Oct.(1)

0.40.00.60.56.7

Nov.(1)

0.80.9-1.31.26.9

Dec.(1)

0.0-1.20.30.46.0

2023

Jan.(1)

0.70.10.01.16.1

Feb.

0.3-0.7-0.20.66.0

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for October 2022 through January 2023 have been revised to reflect the availability of late reports and corrections by respondents.

Intermediate Demand by Production Flow
Stage 4 intermediate demand: The index for stage 4 intermediate demand was unchanged in 
February after increasing 0.9 percent in January. In February, prices for total services inputs to 
stage 4 intermediate demand edged up 0.1 percent, while the index for total goods inputs was 
unchanged. (See table D.) Advances in prices for loan services (partial); securities brokerage, 
dealing, investment advice, and related services; gasoline; warehousing, storage, and related 
services; and gross rents for office buildings offset decreases in the indexes for gross rents for 
retail properties, chemicals and allied products wholesaling, industrial electric power, machinery 
and equipment parts and supplies wholesaling, and diesel fuel. For the 12 months ended in 
February, prices for stage 4 intermediate demand moved up 4.8 percent.
Stage 3 intermediate demand: The index for stage 3 intermediate demand decreased 0.2 
percent in February after inching up 0.1 percent in January. In February, prices for total goods 
inputs to stage 3 intermediate demand declined 0.7 percent. In contrast, the index for total 
services inputs rose 0.2 percent. Falling prices for raw milk, television advertising time sales, 
diesel fuel, ungraded chicken eggs, gross rents for retail properties, and primary basic organic 
chemicals outweighed increases in the indexes for loan services (partial), slaughter chickens, and 
staffing services. For the 12 months ended in February, prices for stage 3 intermediate demand 
advanced 2.3 percent.
Stage 2 intermediate demand: Prices for stage 2 intermediate demand fell 1.0 percent in 
February following a 1.9-percent decline in January. In February, the index for total goods inputs 
to stage 2 intermediate demand dropped 3.7 percent. Conversely, prices for total services inputs 
moved up 1.2 percent. Decreases in the indexes for natural gas, chemicals and allied products 
wholesaling, deposit services (partial), primary basic organic chemicals, food wholesaling, and 
arrangement of freight and cargo transportation outweighed rising prices for loan services 
(partial), crude petroleum, and iron and steel scrap. For the 12 months ended in February, the 
index for stage 2 intermediate demand moved down 1.0 percent, the first 12-month decline since 
October 2020.
Stage 1 intermediate demand: Prices for stage 1 intermediate demand decreased 0.4 percent in 
February after rising 0.7 percent in January. In February, the index for total goods inputs to stage 
1 intermediate demand moved down 0.6 percent, and prices for total services inputs fell 0.3 
percent. Declines in the indexes for diesel fuel, gross rents for retail properties, chemicals and 
allied products wholesaling, primary basic organic chemicals, industrial electric power, and 
agricultural chemicals and chemical products outweighed increases in prices for securities 
brokerage, dealing, and investment advice; iron and steel scrap; and gasoline. For the 12 months 
ended in February, the index for stage 1 intermediate demand advanced 3.6 percent.

Table D. Monthly percent changes in selected intermediate demand price indexes by production flow, seasonally adjusted
MonthStage 4 intermediate
demand
Stage 3 intermediate
demand
Stage 2 intermediate
demand
Stage 1 intermediate
demand
TotalGoods
inputs
Services
inputs
TotalGoods
inputs
Services
inputs
TotalGoods
inputs
Services
inputs
TotalGoods
inputs
Services
inputs

2022

Feb.

0.61.20.11.22.10.24.48.40.50.81.50.1

Mar.

1.11.40.83.04.41.50.60.01.32.63.12.0

Apr.

1.01.20.72.33.31.32.95.10.71.62.40.8

May

0.91.40.51.72.50.73.66.60.31.52.10.8

June

0.31.0-0.30.51.4-0.52.95.30.11.02.4-0.6

July

-0.4-0.80.0-1.2-2.60.4-4.1-8.20.9-1.6-2.8-0.3

Aug.

0.30.00.6-1.3-2.60.13.04.81.2-0.4-1.20.5

Sept.

0.40.10.70.0-0.10.1-1.9-4.00.30.30.30.2

Oct.(1)

0.1-0.10.2-0.1-0.60.5-4.7-9.80.80.1-0.20.4

Nov.(1)

0.4-0.11.0-0.4-1.10.3-1.0-2.90.80.1-0.60.9

Dec.(1)

-0.3-0.70.0-1.9-3.80.11.11.60.6-1.7-2.9-0.4

2023

Jan.(1)

0.90.81.00.1-0.40.5-1.9-4.90.80.70.90.5

Feb.

0.00.00.1-0.2-0.70.2-1.0-3.71.2-0.4-0.6-0.3

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for October 2022 through January 2023 have been revised to reflect the availability of late reports and corrections by respondents.

________________
The Producer Price Index for March 2023 is scheduled to be released on Thursday, April 13, 2023, 
at 8:30 a.m. (ET).

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