During the first 6 months of 2008, the finished goods index rose at a 12.4-percent seasonally adjusted annual rate (SAAR) after increasing at a 5.8-percent SAAR during the second half of 2007. Prices for finished energy goods climbed at a 38.1-percent SAAR from December 2007 to June 2008 after rising at a 16.7-percent SAAR for the 6 months ended December 2007. The index for finished goods other than foods and energy advanced at a 4.5-percent SAAR for the 6 months ended in June after rising at a 1.7-percent SAAR during the prior 6 month period. Prices for finished consumer foods moved up at a 9.8-percent SAAR during the first half of 2008 after increasing at a 7.1-percent SAAR through the second half of 2007. At the earlier stages of processing, the intermediate goods index increased at a 22.5-percent SAAR from December 2007 to June 2008 after moving up at a 7.0-percent SAAR during the latter half of 2007, and prices for crude goods surged at a 74.0-percent SAAR for the 6 months ended in June after climbing at a 22.0-percent SAAR for the 6 months ended December 2007.
Before seasonal adjustment, the Producer Price Index for Finished Goods rose 1.6 percent in June to 182.5 (1982 = 100). From June 2007 to June 2008, prices for finished goods increased 9.2 percent. Over the same period, prices for finished energy goods surged 27.0 percent, the index for finished goods other than foods and energy gained 3.0 percent, and the index for finished consumer foods advanced 8.3 percent. For the 12 months ended June 2008, prices received by intermediate goods producers moved up 14.5 percent, and the crude goods index climbed 45.5 percent.
Finished goods
Prices for finished energy goods advanced 6.0 percent in June after increasing 4.9 percent in May. The residential natural gas index rose 6.6 percent subsequent to a 3.8-percent gain in the previous month. Similarly, prices for liquefied petroleum gas, home heating oil, residential electric power, and unleaded mid-premium gasoline also advanced more than they had in May. The index for lubricating and similar oils moved up in June compared with no change a month earlier. By contrast, slightly counteracting the acceleration in the finished energy goods index, prices for unleaded regular gasoline advanced 9.0 percent in June following a 9.6-percent increase in the previous month. The indexes for diesel fuel and kerosene also rose less than they had in May.
Prices for finished consumer foods moved up 1.5 percent in June following a 0.8-percent increase in May. The index for fresh and dry vegetables advanced 14.7 percent after declining 9.0 percent in the preceding month. Prices for pears, eggs for fresh use, fluid milk products, and processed young chickens also turned up in June. The index for natural, processed, and imitation cheese increased more than it had in the prior month. By contrast, prices for pork fell 2.4 percent compared with an 8.0-percent increase a month earlier. The indexes for noncarbonated soft drinks and confectionery end products also turned down in June. Prices for manufactured ice and for shortening and cooking oils advanced less than they had in May.
The index for finished goods other than foods and energy moved up 0.2 percent in June, the same increase as in May. Higher prices for passenger cars, pet food, aircraft and aircraft equipment, commercial furniture, mining machinery and equipment, railroad equipment, and textbooks outweighed lower prices for light motor trucks, consumer plastic products, and telephone and telegraph equipment.
Intermediate goods
The Producer Price Index for Intermediate Materials, Supplies, and Components rose 2.1 percent in June following a 2.9-percent increase in the prior month. This price deceleration was broad based as the indexes for intermediate energy goods, materials for durable manufacturing, intermediate foods and feeds, materials for nondurable manufacturing, materials and components for construction, and containers all rose less than in May. Price advances for intermediate materials less foods and energy slowed to 1.3 percent in June from 2.0 percent in a month earlier.
The intermediate energy goods index moved up 5.0 percent in June after climbing 6.2 percent in the previous month. The index for diesel fuel rose 6.7 percent after jumping 11.2 percent in May. Prices for natural gas to electric utilities and residual fuels also advanced less than in May. The indexes for both commercial and industrial electric power turned down in June after rising in the prior month. By contrast, partially offsetting the deceleration in the intermediate energy goods index, prices for jet fuels advanced 8.5 percent after moving up 6.9 percent in May. The indexes for liquefied petroleum gas and home heating oil also rose more than in May. The intermediate energy goods index advanced at a 48.9-percent SAAR from December 2007 to June 2008 after moving up at a 21.8-percent SAAR during the second half of 2007.
The increase in the index for materials for durable manufacturing slowed to 1.7 percent in June from 4.5 percent in the preceding month. The index for cold rolled steel sheet and strip rose 1.2 percent following a 10.9-percent advance in May. Prices for hot rolled steel bars, plates, and structural shapes and for semifinished steel mill products also increased less than a month earlier. The indexes for primary nonferrous metals, copper and brass mill shapes, nonferrous wire and cable, and refined lead turned down after advancing in the prior month. By contrast, the rise in the index for hot rolled steel sheet and strip accelerated to 19.9 percent in June from 12.4 percent in the previous month. The index for materials for durable manufacturing advanced at a 31.7-percent SAAR in the 6 months ended June 2008 after decreasing at a 6.4-percent SAAR in the second half of 2007.
The index for intermediate foods and feeds advanced 1.0 percent in June after moving up 3.2 percent in the prior month. The rise in the index for formula feeds (for poultry and livestock) slowed to 1.1 percent from 3.9 percent in May. Prices for shortening and cooking oils also increased less than a month earlier. The indexes for corn, cottonseed, and soybean cake and meal and for pork turned down after moving higher in May. Conversely, the index for fluid milk products advanced 3.5 percent in June following a 2.3-percent decrease in the preceding month. Prices for dry, condensed, and evaporated milk products also turned up after declining in May. The index for flour decreased less in June than in the previous month. Prices for natural, processed, and imitation cheese moved up more than in May. The index for intermediate foods and feeds advanced at a 27.3-percent SAAR for the 6 months ended June 2008 after climbing at a 14.9-percent SAAR in the previous 6-month period.
The rise in the index for materials for nondurable manufacturing slowed to 2.7 percent in June from 3.2 percent in the prior month. The index for primary basic organic chemicals advanced 3.4 percent following a 7.5-percent jump in May. Prices for basic inorganic chemicals, thermoplastic resins and materials, writing and printing papers, and newsprint also increased less than in the previous month. The index for paint colors turned down after climbing in May. By contrast, the index for fertilizer materials jumped 21.2 percent in June after advancing 5.9 percent in the preceding month. Prices for ethanol turned up after decreasing in May. The index for materials for nondurable manufacturing rose at a 27.4-percent SAAR in the first half of 2008 after increasing at an 11.2-percent SAAR in the second half of 2007.
The index for materials and components for construction moved up 1.5 percent in June
after climbing 2.1 percent in the prior month. The rise in the index for structural, architectural,
and pre-engineered metal products slowed to 1.7 percent from 3.2 percent in May. Prices for
unfinished softwood lumber (not made from purchased materials) and for hot rolled steel bars,
plates, and structural shapes also increased less than in the prior month. The indexes for
nonferrous metals and unitary air conditioners turned down after advancing in May. By contrast,
the index for hot rolled steel sheet and strip surged 19.9 percent in June following a 12.4-percent
rise a month earlier. Prices for switchgear and switchboard apparatus and for precast concrete
products turned up after falling in May. The index for materials and components for
construction increased at a 13.2-percent SAAR in the first half of 2008 after edging up at a 0.8-
percent SAAR in the prior 6-month period.
The increase in the index for containers slowed to 0.3 percent in June from 0.5 percent in the preceding month. The index for barrels, drums, and pails advanced 0.6 percent after rising 2.5 percent in May. Prices for paper, plastic, and foil bags also increased less than in the prior month. The index for steel cans was unchanged in June following an advance a month earlier, and prices for wood boxes turned down after rising in May. By contrast, the index for paper boxes and containers advanced 0.3 percent after increasing 0.2 percent in the previous month. Prices for glass containers turned up in June, and the index for aluminum cans was unchanged following a May decline. During the first half of 2008, the index for containers climbed at a 5.5-percent SAAR after rising at a 4.3-percent SAAR in the second half of 2007.
Crude goods
The Producer Price Index for Crude Materials for Further Processing increased 3.7 percent in June following a 6.7-percent advance in May. Prices for crude energy materials rose less than they had in May. The index for crude nonfood materials less energy edged down after climbing in the prior month. By contrast, partially offsetting the deceleration in prices for crude goods, the index for crude foodstuffs and feedstuffs increased more than it had in May.
Prices for crude energy materials moved up 5.4 percent in June following a 13.1-percent jump a month earlier. The natural gas index rose 5.2 percent after surging 17.0 percent in May. The rate of increase in prices for crude petroleum also slowed from May to June, rising 11.1 percent and 4.4 percent, respectively. Conversely, the coal index climbed 14.4 percent following a 2.9-percent gain in May. During the first half of 2008, the crude energy materials index advanced at a 132.7-percent SAAR after rising at a 27.4-percent SAAR in the previous 6-month period.
Prices for crude nonfood materials less energy inched down 0.2 percent in June after increasing 5.0 percent in the preceding month. The copper base scrap index declined 5.3 percent following a 1.3-percent gain in May. Prices for high grade wastepaper and for plant and animal fibers also turned down in June. The index for carbon steel scrap rose less than in the previous month. Prices for stainless and alloy steel scrap and for corrugated wastepaper fell more than they had in May. By contrast, gold ore prices advanced 2.9 percent in June subsequent to a 23.0-percent drop in the prior month. The index for soybeans also turned up in June. Prices for phosphates and pulpwood rose more than they had in May. From December 2007 to June 2008, the index for crude nonfood materials less energy increased at a 61.3-percent SAAR after advancing at a 10.1-percent SAAR in the prior 6-month period.
Prices for crude foodstuffs and feedstuffs climbed 3.5 percent following a 1.8-percent increase in May. The corn index jumped 12.2 percent following a 1.7-percent decline in the prior month. Prices for fluid milk moved up in June after no change a month earlier. The indexes for soybeans, ungraded chicken eggs, fresh vegetables (except potatoes), and sorghum turned up after falling in the previous month. Wheat prices fell less than they had in May. By contrast, prices for slaughter hogs decreased 3.4 percent after rising 18.1 percent in the preceding month. The indexes for slaughter steers and heifers and for slaughter broilers and fryers also turned down in June. The index for crude foodstuffs and feedstuffs increased at a 21.8-percent SAAR in the first half of 2008 subsequent to rising at a 19.7-percent SAAR in the second half of 2007.
