PPI for final demand declines 0.2% in December; goods decrease 0.4%, services fall 0.1%

Economic News Release USDL 19-0075

Producer Price Index News Release summary
Transmission of material in this release is embargoed until 8:30 a.m. (EST), Tuesday, January 15, 2019

Technical information: (202) 691-7705 * ppi-info@bls.gov * www.bls.gov/ppi
Media contact: (202) 691-5902 * PressOffice@bls.gov


PRODUCER PRICE INDEXES - DECEMBER 2018


The Producer Price Index for final demand fell 0.2 percent in December, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices advanced 0.1 percent in November and 0.6 percent in October. (See table A.) On an unadjusted basis, the final demand index moved up 2.5 percent in 2018, the same as in 2017.

In December, 80 percent of the decrease in the final demand index is attributable to a 0.4-percent decline in prices for final demand goods. The index for final demand services edged down 0.1 percent.

The index for final demand less foods, energy, and trade services was unchanged in December following a 0.3-percent rise in November. In 2018, prices for final demand less foods, energy, and trade services advanced 2.8 percent following a 2.3-percent increase in 2017.

Final Demand

Final demand goods: The index for final demand goods moved down 0.4 percent in December, the same as in November. In December, the decline was the result of a 5.4-percent drop in the index for final demand energy. In contrast, prices for final demand foods advanced 2.6 percent, and the index for final demand goods less foods and energy rose 0.1 percent.

Product detail: Leading the December decrease in the index for final demand goods, gasoline prices dropped 13.1 percent. The indexes for diesel fuel, basic organic chemicals, jet fuel, residual fuels, and beef and veal also moved down. Conversely, prices for fresh fruits and melons jumped 48.9 percent. The indexes for construction machinery and equipment and for residential natural gas also increased. (See table 4.)
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The Producer Price Index for January 2019 is scheduled to be released on Thursday, February 14, 2019 at 8:30 a.m. (EST).


Recalculated Seasonal Adjustment Factors and Relative Importance Figures to be
Available on February 12, 2019

Each year with the release of PPI data for January, seasonal adjustment factors and relative
importance figures are recalculated to reflect price movements from the just-completed calendar
year. The following seasonal information will be available on February 12, 2019 (2 workdays
prior to the release of PPI data for January 2019 on February 14, 2019):

* Direct seasonal factors for PPI commodity indexes for the year 2019,
* Recalculated seasonal factors for the last 5 years (2014-2018) for PPI commodity indexes,
* Recalculated seasonal factors for the last 5 years (2014-2018) for PPI Final Demand-
Intermediate Demand indexes,
* Recalculated seasonal index data for the last 5 years (2014-2018) for Final Demand-
Intermediate Demand and commodity indexes. This revision to seasonally adjusted indexes
for the previous 5 years will be posted to the PPI database on the BLS website.

In addition, the following relative importance tables, which include values for December 2018,
will be available on February 12, 2019:

* Final demand by individual commodities
* Final demand by component series
* Individual commodities of intermediate demand by commodity type
* Component series of intermediate demand by commodity type
* Individual commodities of intermediate demand by production flow
* Component series of intermediate demand by production flow
* Commodities, all levels
* Wherever-provided services and construction

This information will be available on the PPI website at www.bls.gov/ppi or by contacting the
PPI Section of Index Analysis and Public Information at ppi-info@bls.gov or (202)691-7705.

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