Before seasonal adjustment, the Producer Price Index for Finished Goods increased 0.9 percent in January to 170.3 (1982 = 100). From January 2008 to January 2009, the index for finished goods moved down 1.0 percent. Over the same period, prices for finished energy goods fell 18.4 percent. By contrast, partially offsetting the decrease in finished goods prices, the index for finished goods less foods and energy rose 4.2 percent and prices for finished consumer foods increased 1.8 percent. For the 12 months ended January 2009, the index for intermediate goods decreased 3.5 percent and prices for crude goods dropped 29.1 percent.
Finished goods
The index for finished energy goods turned up 3.7 percent in January after falling 9.1 percent a month earlier. The index for gasoline increased 15.0 percent after dropping 26.2 percent in the preceding month. Prices for liquefied petroleum gas, home heating oil, and kerosene also turned up after declining in December. The indexes for diesel fuel and residential natural gas fell less than in the prior month. Conversely, partially offsetting the upturn in finished energy goods prices, the rise in the index for residential electric power slowed to 0.3 percent from 0.5 percent in December. Prices for asphalt fell more than in the prior month.
The decline in the index for finished consumer foods slowed to 0.4 percent in January from 1.4 percent in the prior month. The index for fluid milk products fell 0.6 percent following a 5.3-percent decrease in December. Prices for fresh vegetables (except potatoes), processed young chickens, eggs for fresh use, canned carbonated soft drinks, and raspberries turned up after declining a month earlier. Conversely, the index for natural cheese (except cottage cheese) dropped 18.6 percent following a 3.4-percent rise in the preceding month. Prices for pork also turned down in January and the index for beef and veal fell more than in December.
The rise in the index for finished goods less foods and energy accelerated to 0.4 percent in January from 0.2 percent in the previous month. The index for toys, sporting goods, and small arms turned up 4.4 percent after falling 0.8 percent in December. Prices for communication and related equipment, alcoholic beverages, and commercial furniture also increased after declining in the prior month. The index for consumer plastic products fell less in January, and prices for office and store machines and equipment rose after no change in December. By contrast, the advance in the index for passenger cars slowed to 0.3 percent from 1.5 percent in the prior month. Prices for soap and synthetic detergents turned down after rising in December.
Intermediate goods
The Producer Price Index for Intermediate Materials, Supplies, and Components fell 0.7 percent in January following a 4.2-percent decrease in December. Prices for materials for durable manufacturing, intermediate foods and feeds, and materials and components for construction all declined less than they had a month earlier, while the indexes for intermediate energy goods and materials for nondurable manufacturing turned up in January. Excluding foods and energy, prices for intermediate goods moved down 1.1 percent compared with a 2.9-percent decrease in the prior month.
The index for materials for durable manufacturing moved down 3.5 percent in January following a 7.2-percent decrease in December. Prices for hot rolled steel sheet and strip fell 6.8 percent after dropping 23.9 percent in the prior month. Similarly, the indexes for cold rolled steel sheet and strip; hot rolled steel bars, plates, and structural shapes; copper and brass mill shapes; primary nonferrous metals; and thermoplastic resins and plastic materials also decreased less than a month earlier. Prices for cold finished steel bars turned up in January. By contrast, partially offsetting the slower rate of decline in prices for materials for durable manufacturing, the index for semifinished steel mill products moved down 13.8 percent subsequent to a 7.6-percent decrease in December. Prices for steel pipe and tube and for aluminum mill shapes also fell more in January than they had in the preceding month.
The index for intermediate energy goods rose 1.5 percent in January after falling 9.8 percent a month earlier. Prices for liquefied petroleum gas climbed 20.2 percent compared with a 21.8-percent decrease in December. The indexes for gasoline, heating oil, and residual fuels also turned up in January. Prices for both diesel and jet fuel declined less than they had in December. By contrast, the electric power index fell 0.9 percent after advancing 0.6 percent in the prior month. Prices for natural gas to electric utilities and commercial natural gas also turned down in January.
The index for materials for nondurable manufacturing edged up 0.1 percent in January after decreasing 9.1 percent in December. Leading this upturn, prices for basic organic chemicals rose 0.7 percent in January following a 17.8-percent drop a month earlier. The indexes for medicinal and botanical chemicals and for finished fabrics also turned up after falling in December. Prices for thermoplastic resins and plastic materials and for inedible fats and oils declined less in January than they had in the prior month. By contrast, the index for agricultural chemicals and chemical products moved down 14.5 percent subsequent to an 8.2-percent decrease in December. Prices for synthetic rubber also fell more than they had in the previousmonth. The index for knit gray fabrics rose less than a month earlier.
The intermediate foods and feeds index moved down 2.2 percent following a 3.3-percent decline in December. In January, falling prices for natural cheese (except cottage cheese), beef and veal, processed cheese and related products, fats and oils, processed eggs, bulk fluid milk and cream, and pork outweighed rising prices for processed young chickens.
The index for materials and components for construction moved down 0.7 percent after falling 1.2 percent in December. Prices for paving mixtures and blocks declined 6.2 percent in January subsequent to an 8.3-percent drop a month earlier. The index for sheet metal products also decreased less than in the prior month. The indexes for plastic construction products and for prefabricated wood buildings and components advanced after falling in December. Prices for ready-mixed concrete rose more than they had in the previous month. Conversely, the index for structural, architectural, and pre-engineered metal products decreased 2.6 percent compared with a 1.1-percent decline in December. Prices for treated wood products turned down in January, and the index for prepared paint rose less than in the preceding month.
Crude goods
The Producer Price Index for Crude Materials for Further Processing fell 2.9 percent in January following a 5.3-percent decline in December. In January, lower prices for crude energy materials outweighed higher prices for crude foodstuffs and feedstuffs and for crude nonfood materials less energy.
The index for crude energy materials decreased 8.1 percent in January after falling 5.9 percent in the previous month. Natural gas prices dropped 7.8 percent compared with a 14.7-percent increase in the preceding month. The coal index turned down 2.0 percent following a 0.5-percent gain in December. By contrast, partially offsetting the faster rate of decline in the crude energy materials index, prices for crude petroleum declined 12.5 percent in January after falling 31.0 percent a month earlier.
The index for crude foodstuffs and feedstuffs advanced 1.0 percent following a 5.5-percent decrease in December. Slaughter cattle prices rose 1.1 percent in January subsequent to an 8.9-percent decline in the prior month. The indexes for corn, soybeans, and fresh vegetables (except potatoes) also turned up in January. Prices for slaughter barrows and gilts rose more than in December. By contrast, prices for slaughter chickens fell 7.2 percent following a 6.9-percent increase a month earlier. The indexes for Irish potatoes for processing and tree nuts also turned down after rising in December. Fluid milk prices decreased more than they had in the previous month.
The index for crude nonfood materials less energy edged up 0.1 percent in January subsequent to a 2.2-percent decline in December. The increase in iron and steel scrap prices accelerated to 21.9 percent from 13.8 percent in the preceding month. The index for gold ores also advanced more than it had a month earlier. Prices for corn, wheat, and soybeans for nonfood manufacturing turned up in January. By contrast, the index for hides and skins dropped 36.0 percent in January after decreasing 7.5 percent in December. Prices for raw cotton and for construction sand, gravel, and crushed stone turned down in January. The index for aluminum base scrap fell more than it had in December.
Net output price indexes
Mining, Utilities, and Manufacturing Industries. The Producer Price Index for the Net Output of Total Mining, Utilities, and Manufacturing Industries inched up 0.1 percent in January following a 2.8-percent decrease in December. (Net output price indexes are not seasonally adjusted.) Most of this upturn can be traced to prices received by petroleum refineries, which advanced 8.1 percent in January after falling 26.4 percent in the prior month. The industry indexes for poultry processing and farm-feed manufacturing also increased following December declines. Prices received by petrochemical manufacturers decreased less in January than they had a month earlier, and the industry index for soft drink manufacturing climbed more than in December. By contrast, partially offsetting the upturn in the index for total mining, utilities, and manufacturing industries, prices received by cheese manufacturers fell 14.8 percent in January after rising 2.4 percent in the preceding month. The indexes for livestock slaughtering and for electric power generation, transmission, and distribution decreased more than they had in December. Prices received by pharmaceutical preparation manufacturers rose less than in the preceding month. In January, the index for total mining, utilities, and manufacturing industries was 105.2 (December 2006 = 100), 1.9 percent below its year-ago level.
Trade Industries.The Producer Price Index for the Net Output of Total Trade Industries declined 0.3 percent in January following a 0.5-percent advance in the preceding month.(Trade indexes measure changes in margins received by wholesalers and retailers.) Leading this downturn, margins received by merchant wholesalers of nondurable goods fell 2.3 percent after rising 4.6 percent in December. The margin indexes for department stores, gasoline stations with convenience stores, and fuel dealers also decreased following increases in the prior month. Conversely, margins received by gasoline stations without convenience stores jumped 10.3 percent following a 21.0-percent decrease in the prior month. The margin indexes for home centers, electronic shopping and mail-order houses, supermarkets, and new car dealers also turned up in January after falling in December. Margins received by merchant wholesalers of durable goods rose more than they had in the previous month. In January, the index for total trade industries was 110.8 (December 2006 = 100), 5.3 percent above its year-ago level.
Transportation and Warehousing Industries. The Producer Price Index for the Net Output of Total Transportation and Warehousing Industries declined 0.8 percent in January following a 2.8-percent drop in December. Prices received by the air transportation industry group edged down 0.1 percent in January after falling 4.2 percent in the preceding month. The index for couriers and messengers also decreased less than it had in December. Prices received by the general freight trucking industry group and by the inland water freight transportation industry turned up in January. By contrast, the index for the line-haul railroad industry moved down 4.3 percent following a 2.5-percent decline in December. Prices received by the industry for local specialized freight trucking of new goods also decreased more in January than in the previous month. The indexes for deep sea freight transportation and freight transportation arrangement fell after no change in December. In January, the index for total transportation and warehousing industries was 108.6 (December 2006 = 100), 0.3 percent above its year-ago level.
Total Traditional Service Industries. The Producer Price Index for the Net Output of Total Traditional Service Industries advanced 0.4 percent in January following a 0.8-percent decline in December. Prices received by the industry for investment banking and securities dealing increased 7.0 percent after falling 2.0 percent a month earlier. The indexes for automotive equipment rental and leasing, software publishers, and offices of lawyers also turned up in January. Prices received by the depository credit intermediation industry group were unchanged following decreases in December. The index for direct health and medical insurance carriers rose more in January than it had in the prior month. Conversely, prices received by real estate agents and brokers fell 4.5 percent in January after declining 0.6 percent in December. Prices received by the industries for temporary help services moved down in January after rising in December. In January, the index for total traditional service industries was 102.3(December 2006 = 100), unchanged from its year-ago level.
