Before seasonal adjustment, the Producer Price Index for Finished Goods moved up 0.7 percent in October to 168.6 (1982 = 100). From October 2006 to October 2007, finished goods prices advanced 6.1 percent. Over the same period, the index for finished energy goods climbed 16.6 percent, prices for finished consumer foods rose 7.1 percent, and the index for finished goods other than foods and energy increased 2.5 percent. At the earlier stages of processing, prices received by intermediate goods producers advanced 5.6 percent, while the crude goods index jumped 25.7 percent for the 12 months ended in October.
Finished goods
The index for finished consumer foods rose 1.0 percent in October after climbing 1.5 percent in September. Higher prices for fresh and dry vegetables, soft drinks, fresh fruits and melons, processed fruits and vegetables, and bakery products outweighed lower prices for beef and veal, pork, eggs for fresh use, dairy products, and processed young chickens.
The index for finished energy goods declined 0.8 percent in October following a 4.1-percent advance in September. Gasoline prices decreased 3.1 percent after rising 8.4 percent a month earlier. The indexes for residential natural gas, home heating oil, and diesel fuel also declined in October following increases in the prior month. Prices for liquefied petroleum gas and kerosene rose less than in September. By contrast, partially offsetting the downturn in finished energy goods prices, the index for residential electric power moved up 0.2 percent
following no change in September. Prices for lubricating and similar oils increased in October after falling a month earlier.
The index for finished goods other than foods and energy was unchanged in October after rising 0.1 percent in September. Price increases for passenger cars, cigarettes, civilian aircraft, household furniture, book publishing, and sanitary papers and health products were offset by price decreases for light motor trucks, electronic computers, newspaper circulation, alcoholic beverages, and communication and related equipment. In accordance with usual practice, most new-model-year passenger cars and light motor trucks were introduced into the PPI in October. In October, the index for passenger cars moved up 1.0 percent, and light motor truck prices fell 2.7 percent. For the 12 months ended October 2007, the passenger cars index rose 0.4 percent, and prices for light motor trucks advanced 5.1 percent.
Intermediate goods
The Producer Price Index for Intermediate Materials, Supplies, and Components increased 0.1 percent in October after rising 0.4 percent in September. The index for intermediate foods and feeds advanced less in October than a month earlier, and prices for intermediate energy goods turned down after moving up in September. By contrast, partially offsetting the deceleration in the intermediate goods index, prices for materials for nondurable manufacturing rose more than in September. The index for materials for durable manufacturing decreased less in October than in the previous month, and prices for materials and components for construction turned up after declining in September.
The advance in the index for intermediate foods and feeds slowed to 1.0 percent in October from 1.4 percent in the prior month. The index for flour moved up 5.9 percent after jumping 13.2 percent in the preceding month. Prices for natural, processed, and imitation cheese; beef and veal; processed young chickens; and refined sugar and byproducts turned down after increasing in September. The index for pork fell more than a month earlier. Conversely, the increase in the index for prepared animal feeds accelerated to 3.1 percent in October from 0.4 percent in the prior month. Prices for shortening and cooking oils also rose more than in September.
The index for intermediate energy goods turned down 0.1 percent after advancing 1.1 percent in September. The diesel fuel index decreased 4.0 percent following a 3.1-percent rise in the prior month. Prices for gasoline, residual fuel, and both commercial electric power and natural gas also turned down in October. Conversely, the index for jet fuels advanced 3.2 percent after decreasing 6.4 percent in September. Prices for natural gas to electric utilities and industrial natural gas also turned up after falling a month earlier.
The rise in the index for materials for nondurable manufacturing accelerated to 1.1 percent in October from 0.5 percent in the previous month. The index for plastic resins and materials turned up 0.6 percent after moving down 0.6 percent in September. Prices for paperboard and basic inorganic chemicals rose more than a month earlier. The index for nitrogenates declined less than in the preceding month. Conversely, the increase in the index for primary basic organic chemicals slowed to 0.7 percent in October from 4.9 percent a month earlier. Prices for phosphates, paint materials, synthetic rubber, and gray fabrics turned down after rising in September.
The decrease in the index for materials for durable manufacturing slowed to 0.4 percent in October from 1.3 percent in the preceding month. The index for hot rolled steel bars, plates, and structural shapes moved down 0.6 percent after falling 1.6 percent in September. Prices for semifinished steel mill products also declined less than a month earlier. The indexes for primary nonferrous metals, hot rolled steel sheet and strip, copper and brass mill shapes, and titanium mill shapes turned up after decreasing in the previous month. Conversely, the index for cold rolled steel sheet and strip fell 7.7 percent in October following a 1.0-percent advance in the prior month. Prices for softwood lumber decreased more than in September.
The index for materials and components for construction inched up 0.1 percent in October after falling 0.2 percent a month earlier. The index for nonferrous wire and cable rose 4.3 percent following a 1.9-percent September decrease. Prices for asphalt felts and coatings and for treated wood also turned up. The index for millwork increased after remaining unchanged a month earlier. By contrast, the index for softwood lumber declined 4.4 percent in October after moving down 1.0 percent in the prior month. Prices for gypsum products and plywood also decreased more than in September. The indexes for switchgear and switchboard equipment and for air conditioning and refrigeration equipment turned down after rising in the preceding month. Prices for concrete products were unchanged following advances in September.
Crude goods
The Producer Price Index for Crude Materials for Further Processing climbed 2.4 percent in October after inching up 0.1 percent in September. This acceleration is attributable to prices for crude energy materials, which rose in October following declines a month earlier. By contrast, the index for crude foodstuffs and feedstuffs moved down after increasing in September, and prices for basic industrial materials advanced less than they had in the prior month.
The index for crude energy materials jumped 5.9 percent in October following a 2.0-percent decrease in September. This upturn can be traced to natural gas prices, which climbed 9.7 percent in October after dropping 11.1 percent in the previous month. By contrast, slightly
counteracting the upturn in crude energy goods prices, the crude petroleum index advanced 3.7 percent following a 7.1-percent increase in September. Coal prices fell 0.5 percent in October compared with a 0.2-percent decline a month earlier.
The index for crude foodstuffs and feedstuffs decreased 1.8 percent in October after climbing 2.4 percent in September. Prices for slaughter broilers and fryers moved down 11.0 percent following a 4.2-percent rise in the preceding month. The slaughter cattle index also turned down in October. Prices for wheat, soybeans, and fresh fruits and melons increased less than they had in September. The indexes for slaughter hogs and fluid milk fell more in October than a month earlier. By contrast, corn prices moved up 0.5 percent compared with a 1.4-percent decrease in September. The alfalfa hay and unprocessed finfish indexes also turned up in October. The index for fresh and dry vegetables rose more than in the prior month.
The index for crude nonfood materials less energy advanced 1.4 percent in October after moving up 1.6 percent in September. Raw cotton prices increased 1.8 percent following a 16.3-percent jump in the previous month. The index for construction sand, gravel, and crushed stone also rose less in October than it had a month earlier. Prices for iron and steel scrap and for phosphates moved down following advances in September. The index for logs, bolts, timber, and pulpwood fell more in October than in the prior month, while prices for hides and skins declined after no change in September. By contrast, the nonferrous scrap index rose 4.8 percent in October after decreasing 0.5 percent in the preceding month. Prices for wastepaper and gold ores increased more than they had in September.
Net output price indexes
Mining, Utilities, and Manufacturing Industries. The Producer Price Index for the Net Output of Total Mining, Utilities, and Manufacturing Industries edged up 0.1 percent in October subsequent to a 0.5-percent rise in September. (Net output price indexes are not seasonally adjusted.) In October, higher prices received by the industry groups for transportation equipment, oil and gas extraction, chemical manufacturing, beverage and tobacco manufacturing, and paper manufacturing outweighed lower prices received by the industry group for electric power generation, distribution, and transmission, as well as, by manufacturers of food products and of computer and electronic products.
Trade Industries. The Producer Price Index for the Net Output of Total Trade Industries increased 1.4 percent in October after falling 2.2 percent in September. (Trade indexes measure changes in margins received by wholesalers and retailers.) Margins received by gasoline stations rose 11.7 percent compared with a 15.6-percent decline in the prior month. The margin indexes for merchant wholesalers of nondurable goods, department stores, grocery stores, fuel dealers, and recreational vehicle dealers also turned up in October. Margins received by merchant wholesalers of durable goods decreased less than they had a month earlier. By contrast, partially counteracting the upturn in the total trade industries index, margins received by electronic shopping and mail order houses fell 0.5 percent following a 3.3-percent increase in September. The margin indexes for furniture stores and clothing stores also turned down in October.
Transportation and Warehousing Industries. The Producer Price Index for the Net Output of Total Transportation and Warehousing Industries advanced 1.0 percent in October compared
with a 0.9-percent decline a month earlier. Leading this upturn, prices received by the industry for scheduled passenger air transportation rose 4.7 percent following a 6.4-percent decrease in the preceding month. The local general freight trucking index also turned up in October. Prices received by the industry for freight transportation arrangement fell less than in September, while the line-haul railroads index advanced more than it had a month earlier. By contrast, prices received by the industry for inland water freight transportation moved down 5.5 percent after rising 5.4 percent in the prior month. The indexes for couriers and for long distance general freight trucking (truckload) also turned down in October. Prices for pipeline transportation of crude oil were unchanged after rising in September.
Traditional Service Industries. The Producer Price Index for the Net Output of Total Traditional Service Industries was unchanged after edging down 0.2 percent in September. Prices received by the general medical and surgical hospitals industry advanced 1.6 percent in October subsequent to inching up 0.1 percent a month earlier. The index for offices of physicians (excluding mental health) also increased more than it had in the preceding month. Prices received by the non-casino hotels and motels industry decreased less than they had in the previous month. The passenger car rental index turned up in October, and the index for direct health and medical insurance carriers rose after no change in September. By contrast, prices received by the commercial banking industry moved down 3.0 percent in October following a 1.9-percent decrease in the previous month. The index for savings institutions also declined more than it had a month earlier. Prices received by the industries for management consulting services and for cellular and other wireless carriers turned down in October.
