In January, leading the broad-based increase in the index for finished goods were higher prices for finished energy goods, which rose 1.8 percent. The indexes for both finished goods less foods and energy and for finished consumer foods also contributed to this increase, moving up 0.5 percent and 0.3 percent, respectively.
Finished energy: The index for finished energy goods climbed 1.8 percent in January, the fourth consecutive monthly increase. Most of the January rise is attributable to a 6.9-percent advance in gasoline prices. Increases in the indexes for diesel fuel and home heating oil also contributed to higher finished energy goods prices.
Finished core: Prices for finished goods other than foods and energy moved up 0.5 percent in January, the third straight increase. Nearly forty percent of the January advance can be traced to the index for pharmaceutical preparations, which moved up 1.4 percent. Higher prices for plastic products also contributed to the rise in the finished core index.
Finished foods: The index for finished consumer foods moved up 0.3 percent in January, the fifth consecutive monthly increase. A 13.7-percent advance in prices for fresh and dry vegetables was the main factor in the January rise in the finished consumer foods index.
Intermediate goods
The Producer Price Index for intermediate materials, supplies, and components rose 1.1 percent in January, the sixth straight monthly increase. Accounting for nearly two-thirds of the broad-based January advance, prices for intermediate goods other than foods and energy climbed 1.0 percent. The indexes for intermediate energy goods and for intermediate foods and feeds also contributed to this rise, moving up 1.8 percent and 0.4 percent, respectively. For the 12 months ended January 2011, prices for intermediate goods increased 6.0 percent, the smallest advance since rising 5.4 percent in September 2010.
Intermediate core: The index for intermediate goods less foods and energy climbed 1.0 percent in January, the largest increase since a 1.1-percent jump in April 2010. Roughly one-fourth of January's over-the-month advance can be traced to prices for industrial chemicals, which moved up 3.0 percent. Higher prices for steel mill products and for plastic resins and materials also were major factors in the January rise in the intermediate core index.
Intermediate energy: Prices for intermediate energy goods increased 1.8 percent in January, the sixth straight monthly advance. A major factor in the January rise was the diesel fuel index, which jumped 7.2 percent. Higher prices for gasoline also contributed significantly to the increase in the intermediate energy goods index.
Intermediate foods: In January, the index for intermediate foods and feeds moved up 0.4 percent for the second consecutive month. A 2.7-percent rise in beef and veal prices accounted for about forty percent of the January increase in the intermediate foods index.
Crude goods
The Producer Price Index for crude materials for further processing increased 3.3 percent in January. For the 3-month period ended in January, crude material prices climbed 11.5 percent after moving up 8.8 percent from July to October. In January, about half of the broad-based monthly advance is attributable to a 4.3-percent rise in prices for crude foodstuffs and feedstuffs. Also contributing to this increase, the index for crude nonfood materials less energy moved up 4.0 percent and prices for crude energy materials rose 1.9 percent.
Crude foods: The index for crude foodstuffs and feedstuffs increased 4.3 percent in January. From October to January, prices for crude foodstuffs and feedstuffs moved up 5.6 percent after rising 11.8 percent in the 3 months ended October 2010. Nearly half of the January monthly advance can be traced to a 7.6-percent gain in the slaughter cattle index. Higher prices for hay, hayseeds, and oilseeds and for slaughter borrow and gilts also were factors in the increase in the crude foodstuffs and feedstuffs index.
Crude core: The index for crude nonfood materials less energy moved up 4.0 percent in January. For the 3 months ended in January, crude core prices climbed 11.1 percent, subsequent to a 10.6-percent rise from July to October. Over eighty percent of January's over-the-month increase was driven by a 13.6-percent jump in the index for iron and steel scrap. Rising prices for nonferrous scrap also contributed to the advance in the crude core index.
Crude energy: The index for crude energy materials rose 1.9 percent in January. For the 3-month period ended in January, prices for crude energy materials jumped 17.3 percent after advancing 4.3 percent for the 3 months ended October 2010. A 3.7-percent increase in the index
for crude petroleum led the January monthly advance in crude energy prices.
Services Analysis
Trade industries: The Producer Price Index for the net output of total trade industries moved down 0.7 percent in January, the largest decline since a 1.4-percent drop in June 2010. (Trade indexes measure changes in margins received by wholesalers and retailers.) Accounting for over forty percent of the January decrease, margins received by discount department stores fell 11.1 percent. Declines in the indexes for both family and women's clothing stores also contributed to the January drop in margins received by trade industries.
Transportation and warehousing industries: The Producer Price Index for the net output of transportation and warehousing industries moved up 1.8 percent in January, the largest increase since a 2.1-percent gain in June 2008. Accounting for over two-fifths of the January advance,
prices received by the air transportation industry group rose 4.2 percent. Higher prices received by couriers and the water transportation industry group also were major factors in the January increase in the transportation and warehousing industries index.
Traditional service industries: The Producer Price Index for the net output of total traditional service industries advanced 0.7 percent in January, the largest increase since a similar 0.7-percent advance in April 2010. More than half of the January rise can be traced to a 4.3-percent increase in prices received by the depository credit intermediation industry group. Advances in the indexes for insurance carriers and offices of lawyers also contributed to higher prices received by total traditional service industries.
