The Producer Price Index for final demand increased 0.3 percent in January, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices declined 0.1 percent in December 2023 and advanced 0.1 percent in November. (See table A.) On an unadjusted basis, the index for final demand rose 0.9 percent for the 12 months ended January 2024. In January, the advance in the index for final demand can be traced to a 0.6-percent rise in prices for final demand services. In contrast, the index for final demand goods decreased 0.2 percent. The index for final demand less foods, energy, and trade services rose 0.6 percent in January 2024, the largest advance since moving up 0.6 percent in January 2023. For the 12 months ended January 2024, prices for final demand less foods, energy, and trade services increased 2.6 percent. Final Demand Final demand services: The index for final demand services moved up 0.6 percent in January, the largest increase since rising 0.8 percent in July 2023. In January, most of the advance is attributable to prices for final demand services less trade, transportation, and warehousing, which climbed 0.8 percent. The index for final demand trade services moved up 0.2 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) Conversely, prices for final demand transportation and warehousing services fell 0.4 percent. Product detail: A 2.2-percent increase in the index for hospital outpatient care was a major factor in the January rise in prices for final demand services. The indexes for chemicals and allied products wholesaling, machinery and equipment wholesaling, portfolio management, traveler accommodation services, and legal services also moved higher. In contrast, prices for long-distance motor carrying decreased 1.0 percent. The indexes for computer hardware, software, and supplies retailing and for engineering services also moved lower. (See table 2.) Final demand goods: The index for final demand goods moved down 0.2 percent in January, the fourth consecutive decline. Most of the January decrease is attributable to a 1.7-percent drop in prices for final demand energy. The index for final demand foods fell 0.3 percent. Conversely, prices for final demand goods less foods and energy increased 0.3 percent. Product detail: Leading the January decline in the index for final demand goods, prices for gasoline fell 3.6 percent. The indexes for electric power; hay, hayseeds, and oilseeds; beef and veal; ethanol; and iron and steel scrap also moved lower. In contrast, prices for communication and related equipment increased 2.4 percent. The indexes for soft drinks and for liquified petroleum gas also moved higher.
| Month | Total final demand | Final demand less foods, energy, and trade | Final demand goods | Final demand services | Change in final demand from 12 months ago (unadj.) | Change in final demand less foods, energy, and trade from 12 mo. ago (unadj.) | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total | Foods | Energy | Less foods and energy | Total | Trade | Transportation and warehousing | Other | |||||
2023 | ||||||||||||
Jan. | 0.4 | 0.6 | 1.1 | -1.4 | 4.7 | 0.6 | 0.1 | -0.9 | -0.5 | 0.6 | 5.7 | 4.4 |
Feb. | 0.0 | 0.3 | -0.6 | -2.3 | -1.7 | 0.3 | 0.2 | -0.1 | -0.6 | 0.5 | 4.7 | 4.5 |
Mar. | -0.4 | 0.1 | -0.8 | 0.3 | -4.6 | 0.2 | -0.2 | -0.7 | -0.7 | 0.1 | 2.7 | 3.7 |
Apr. | 0.2 | 0.2 | -0.1 | -0.7 | -0.1 | 0.1 | 0.3 | 0.5 | -2.2 | 0.5 | 2.3 | 3.4 |
May | -0.2 | 0.0 | -1.2 | -0.8 | -5.4 | 0.1 | 0.2 | 0.7 | -0.7 | 0.1 | 1.1 | 2.9 |
June | 0.0 | 0.2 | -0.1 | -0.4 | 0.4 | -0.1 | 0.0 | -0.8 | -0.3 | 0.5 | 0.3 | 2.9 |
July | 0.6 | 0.2 | 0.2 | 0.3 | 0.8 | 0.0 | 0.8 | 1.7 | 0.2 | 0.4 | 1.1 | 2.9 |
Aug. | 0.6 | 0.2 | 1.7 | -0.4 | 8.9 | 0.1 | 0.2 | -0.1 | 0.0 | 0.3 | 1.9 | 2.9 |
Sept.(1) | 0.2 | 0.3 | 0.9 | 0.4 | 3.2 | 0.3 | -0.1 | -1.1 | 0.4 | 0.3 | 1.8 | 2.9 |
Oct.(1) | -0.4 | 0.1 | -1.3 | 0.2 | -6.5 | 0.1 | 0.1 | 0.0 | 0.5 | 0.0 | 1.0 | 2.8 |
Nov.(1) | 0.1 | 0.1 | -0.1 | 0.7 | -1.8 | 0.1 | 0.2 | 0.4 | -0.2 | 0.1 | 0.7 | 2.5 |
Dec.(1) | -0.1 | 0.2 | -0.3 | -0.7 | -1.0 | 0.1 | -0.1 | -1.0 | -0.2 | 0.3 | 1.0 | 2.6 |
2024 | ||||||||||||
Jan. | 0.3 | 0.6 | -0.2 | -0.3 | -1.7 | 0.3 | 0.6 | 0.2 | -0.4 | 0.8 | 0.9 | 2.6 |
Footnotes | ||||||||||||
Intermediate Demand by Commodity Type
