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Producer Price Index for finished goods advances 0.3% and finished core inches up 0.1%

PRODUCER PRICE INDEXES - NOVEMBER 2011


The Producer Price Index for finished goods advanced 0.3 percent in November, seasonally 
adjusted, the U.S. Bureau of Labor Statistics reported today. Finished goods prices fell 0.3 
percent in October and moved up 0.8 percent in September. At the earlier stages of processing, 
the index for intermediate goods rose 0.2 percent and crude goods prices increased 3.8 percent. 
On an unadjusted basis, the finished goods index advanced 5.7 percent for the 12 months ended 
November 2011, the smallest year-over-year rise since a 5.6-percent increase in March 2011. (See 
table A.)

Table A. Monthly and 12-month percent changes in selected stage-of-processing price indexes, seasonally adjusted
Month Finished goods Intermediate
goods
Crude
goods
Total Foods Energy Except foods
and energy
Change in
finished goods
from 12 months
ago (unadj.)

2010

 

Nov.

0.5 0.8 1.6 0.0 (r)3.4 0.9 1.4

Dec.

0.9 0.8 2.5 0.2 3.8 1.1 6.9

2011

 

Jan.

1.0 0.4 2.8 0.5 3.6 1.6 3.5

Feb.

1.5 3.5 2.9 0.2 5.4 1.9 3.1

Mar.

0.7 -0.4 2.8 0.3 5.6 1.4 -0.8

Apr.

0.8 0.5 2.2 0.3 6.6 1.4 3.9

May

0.1 -1.2 1.1 0.1 7.1 0.6 -4.3

June

-0.3 0.6 -2.3 0.3 6.9 0.0 -0.6

July(1)

0.3 0.8 -1.0 0.6 7.1 0.2 -0.7

Aug.(1)

0.1 1.0 -0.2 -0.1 6.5 -0.4 -0.2

Sept.

0.8 0.6 2.3 0.2 6.9 0.6 2.8

Oct.

-0.3 0.1 -1.4 0.0 5.9 -1.1 -2.5

Nov.

0.3 1.0 0.1 0.1 5.7 0.2 3.8

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for July 2011 have been revised to reflect the availability of late reports and corrections by respondents.
(r) Revised

Stage-of-Processing Analysis

Finished goods

In November, the increase in the finished goods index was broad based with prices for finished 
consumer foods moving up 1.0 percent. The indexes for both finished goods less foods and 
energy and for finished energy goods inched up 0.1 percent.

Finished foods:  The index for finished consumer foods jumped 1.0 percent in November, the 
sixth consecutive monthly increase. Over half of the November advance can be attributed to the 
index for fresh and dry vegetables, which rose 11.5 percent. Higher prices for processed young 
chickens and meats also were factors in the increase in the finished consumer foods index. (See 
table 2.)

Finished core:  The index for finished goods less foods and energy advanced 0.1 percent in 
November after no change a month earlier. Leading this rise, the index for pharmaceutical 
preparations jumped 0.9 percent. Price increases for passenger cars also contributed to the 
advance in the finished core index.

Finished energy:  The index for finished energy goods edged up 0.1 percent in November after 
declining 1.4 percent in the prior month. Leading this increase was a 9.4-percent advance in home 
heating oil prices.

Intermediate goods

The Producer Price Index for intermediate materials, supplies, and components moved up 0.2 
percent in November after declining 1.1 percent in October. Leading this increase, prices for 
intermediate energy goods rose 1.9 percent. The index for intermediate foods and feeds also 
contributed to the advance, moving up 0.6 percent. By contrast, prices for intermediate materials 
less foods and energy decreased 0.4 percent. For the 12 months ending in November, the 
intermediate goods index increased 7.7 percent, the smallest year-over-year rise since a 6.2-
percent increase in January 2011. (See table B.)

Intermediate energy:  Prices for intermediate energy goods advanced 1.9 percent in November 
following a 2.6-percent decline in October. Over forty percent of this rise can be attributed to a 
7.5-percent increase in the diesel fuel index. Higher prices for industrial electric power and jet 
fuels also were factors in the November advance in the intermediate energy goods index. (See 
table 2.)

Intermediate foods:  The index for intermediate foods and feeds increased 0.6 percent in 
November after falling 1.5 percent a month earlier. The index for processed young chickens 
accounted for over three-quarters of the advance, moving up 8.0 percent. Higher prices for 
natural cheese, except cottage cheese, also contributed to the November rise in the index for 
intermediate foods and feeds.

Intermediate core:  Prices for intermediate goods less foods and energy fell 0.4 percent in 
November, the second consecutive monthly decline. The November decrease was mostly due to a 
4.1-percent drop in the index for basic organic chemicals.

Crude goods

The Producer Price Index for crude materials for further processing moved up 3.8 percent in 
November. For the 3 months ending in November, prices for crude materials advanced 4.0 
percent following a 1.5-percent decline from May to August. In November, the monthly increase 
in the crude goods index is mostly attributable to prices for crude energy materials, which 
jumped 10.5 percent. Also contributing to the November climb was the index for crude 
foodstuffs and feedstuffs, which advanced 0.5 percent. By contrast, prices for crude nonfood 
materials less energy decreased 2.5 percent. (See table B.)

Crude energy:  The index for crude energy materials rose 10.5 percent in November. From 
August to November, prices for crude energy materials jumped 16.4 percent subsequent to an 
11.0-percent decline for the 3 months ending in August. The monthly increase in November was 
led by a 22.7-percent jump in the crude petroleum index. Higher prices for coal also were a factor 
in the rise in the crude energy index. (See table 2.)

Crude foods:  Prices for crude foodstuffs and feedstuffs climbed 0.5 percent in November. For 
the 3 months ending in November, the crude foods index moved down 2.1 percent after rising 
5.9 percent from May to August. The November monthly increase was led by a 3.2-percent 
advance in prices for slaughter cattle. A rise in the slaughter poultry index also contributed to the 
climb in crude foods prices.

Crude core:  The index for crude nonfood materials less energy fell 2.5 percent in November. 
From August to November, crude core prices declined 5.8 percent following a 3.3-percent rise in 
the prior 3-month period. In November, a 6.6-percent drop in prices for iron and steel scrap 
accounted for almost three-quarters of the monthly decrease in the crude core index.  

Table B. Monthly and 12-month percent changes in selected price indexes for intermediate goods and crude goods, seasonally adjusted
Month Intermediate goods Crude goods
Foods Energy Except
foods
and energy
Change in
intermediate
goods from
12 months
ago (unadj.)
Foods Energy Except
foods
and energy
Change in
crude
goods from
12 months
ago (unadj.)

2010

 

Nov.

1.8 1.5 0.6 (r)5.9 0.4 1.7 2.3 13.1

Dec.

0.3 2.9 0.6 6.3 0.7 15.4 3.2 16.1

2011

 

Jan.

0.4 2.8 1.3 6.2 4.7 2.2 4.1 10.9

Feb.

2.6 4.2 1.2 8.1 6.8 0.3 2.2 16.5

Mar.

2.0 2.9 0.8 9.1 0.0 -1.2 -1.8 16.7

Apr.

1.8 1.8 1.2 9.7 3.8 4.5 2.9 23.8

May

-0.5 1.1 0.6 10.3 -4.2 -5.7 -1.4 22.7

June

0.5 -0.3 0.1 10.9 2.0 -4.0 1.3 26.1

July(1)

0.2 -0.1 0.3 11.5 -0.3 -2.3 1.0 23.1

Aug.(1)

1.6 -1.8 -0.1 10.3 4.1 -5.2 0.9 18.4

Sept.

0.9 1.7 0.2 10.5 -0.9 7.7 1.0 20.9

Oct.

-1.5 -2.6 -0.6 8.3 -1.8 -2.2 -4.3 12.6

Nov.

0.6 1.9 -0.4 7.7 0.5 10.5 -2.5 15.1

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for July 2011 have been revised to reflect the availability of late reports and corrections by respondents.
(r) Revised

Services Analysis

Trade industries:  The Producer Price Index for the net output of total trade industries was 
unchanged in November following a 1.0-percent drop in October. (Trade indexes measure 
changes in margins received by wholesalers and retailers.) In November, higher margins received 
by family clothing stores and discount department stores offset lower margins received by 
wholesale trade industries and non-discount department stores.

Transportation and warehousing industries:  The Producer Price Index for the net output of 
transportation and warehousing industries moved down 0.2 percent in November after rising 0.4 
percent in October. Most of this decline can be traced to prices received by the scheduled 
passenger air transportation industry, which fell 1.8 percent. Lower prices for deep sea freight 
transportation and local general freight trucking also contributed to the decrease in the 
transportation and warehousing industries index.

Traditional service industries:  The Producer Price Index for the net output of total traditional 
service industries edged up 0.1 percent in November following a 0.1-percent decline in October. 
Leading this advance, prices received by general medical and surgical hospitals increased 0.6 
percent. Higher prices received by the portfolio management industry and by direct health and 
medical insurance carriers also were factors in the rise in the index for total traditional service 
industries.
____________
The Producer Price Index for December 2011 is scheduled to be released on Wednesday, 
January 18, 2012 at 8:30 a.m. (EST).



  Recalculated Seasonal Adjustment Factors and Relative Importance Figures to be Available on 
                                      February 14, 2012

Each year with the release of PPI data for January, seasonal adjustment factors are recalculated 
to reflect price movements from the just-completed calendar year. The following information will 
be available on February 14, 2012 (2 workdays prior to the release of PPI data for January 2012 
on February 16):

* Direct seasonal factors for commodity indexes for the year 2012,

* Recalculated seasonal factors for the last 5 years (2007-2011) for the commodity indexes, 

* Recalculated seasonal factors for the last 5 years (2007-2011) for the stage-of-processing 
indexes.

This routine annual calculation may result in revisions to seasonally adjusted indexes for the 
previous 5 years, which will be available on the BLS website. In addition, December 2011 
relative importance figures also will be available on February 14, 2012.
      
To obtain this information, visit the PPI website at www.bls.gov/ppi or call the Division of 
Industrial Prices and Price Indexes, Section of Index Analysis and Public Information at (202) 
691-7705.



                                  PPI Weights to be Updated
 
The Bureau of Labor Statistics will soon update the value weights used to calculate Producer 
Price Indexes to more accurately reflect recent production and marketing patterns. The new 
weights, which will be introduced in February 2012 with the release of January 2012 index data, 
will be based on shipment values from the year 2007. These value weights come from the Census 
of Manufactures, the Census of Mining, the Census of Services, and the Census of Agriculture. 
PPI weights have been based on 2002 census shipment values since January 2007.
 
All PPIs will be affected by this weight update, including all the industry net output indexes, as 
well as indexes for traditional commodity groupings. In addition, weights will be updated from 
the 2002 to the 2007 census for all stage-of-processing indexes, durability of product indexes, 
and special commodity-grouping indexes. This weight revision will not change any arithmetic 
reference bases for indexes, the dates when PPIs were set to 100.
 
The basic structures of the PPI commodity and stage-of-processing classification systems will not 
change as a result of the weight revision. The PPIs classified according to the North American 
Industry Classification System (NAICS), however, will be updated in February 2012 with the 
release of January 2012 index data to reflect 2012 NAICS definitions established by the U.S. 
Census Bureau. The weight update will also result in significant shifts in the relative importance 
of various industries and products. These shifts will impact aggregate indexes in a manner 
commensurate with the relative gains and losses in value weights from 2002 to 2007.
 
Commodity and stage-of-processing relative importance figures for December 2011 will be 
available on February 14, 2012, two business days prior to the release of January 2012 PPI data.  
This information will be available on the PPI website at www.bls.gov/ppi or by calling the 
Division of Industrial Prices and Price Indexes, Section of Index Analysis and Public 
Information at (202) 691-7705.                          

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