Economic News Release

Transmission of material in this release is embargoed until                          USDL-13-0282
8:30 a.m. (EST), Wednesday, February 20, 2013

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

             
                                PRODUCER PRICE INDEXES - JANUARY 2013


The Producer Price Index for finished goods advanced 0.2 percent in January, seasonally 
adjusted, the U.S. Bureau of Labor Statistics reported today. Prices for finished goods declined 
0.3 percent in December and 0.4 percent in November. At the earlier stages of processing, the 
index for intermediate goods was unchanged in January, and crude goods prices increased 0.8 
percent. On an unadjusted basis, the finished goods index advanced 1.4 percent for the 12 
months ended January 2013. (See table A.)

Stage-of-Processing Analysis

Finished goods

In January, over three quarters of the rise in finished goods prices can be attributed to the index 
for finished consumer foods, which advanced 0.7 percent. Also contributing to the increase in 
finished goods prices, the index for finished goods less foods and energy rose 0.2 percent. By 
contrast, prices for finished energy goods fell 0.4 percent.

Finished foods:  The index for finished consumer foods rose 0.7 percent in January after a 0.8-
percent decline in December. This advance was led by a 39.0-percent jump in prices for fresh and 
dry vegetables. Increases in the indexes for soft drinks and for candy and nuts also contributed 
to higher prices for finished consumer foods. (See table 2.)

Finished core:  Prices for finished goods less foods and energy moved up 0.2 percent in January, 
the third straight increase. Most of the January advance can be traced to a 2.5-percent rise in the 
index for pharmaceutical preparations. Higher prices for communication and related equipment 
also contributed to the increase in the finished core index.

Finished energy:  The index for finished energy goods moved down 0.4 percent in January, the 
fourth straight decrease. The January decline is mostly attributable to prices for gasoline, which 
fell 2.1 percent.

Intermediate goods

The Producer Price Index for intermediate materials, supplies, and components was unchanged in 
January after edging up 0.1 percent in December. In January, a 0.3-percent rise in prices for 
intermediate goods less foods and energy offset declines of 1.3 percent for the intermediate 
foods and feeds index and 0.3 percent for intermediate energy goods prices. For the 12 months 
ended in January, the intermediate goods index increased 0.4 percent. (See table B.)

Intermediate core:  Prices for intermediate goods less foods and energy moved up 0.3 percent in 
January, the same as in December. About thirty percent of the January rise can be traced to the 
index for primary basic organic chemicals, which climbed 2.0 percent. Higher prices for 
thermoplastic resins and materials and for lumber also contributed to the increase in the 
intermediate core index. (See table 2.)

Intermediate foods:  The index for intermediate foods and feeds fell 1.3 percent in January, the 
largest decrease since a 1.3-percent drop in October 2011. Over half of the January decline is 
attributable to prices for prepared animal feeds, which moved down 3.1 percent. A decrease in 
the index for processed eggs also was a factor in the decline in the intermediate foods index.

Intermediate energy:  Prices for intermediate energy goods fell 0.3 percent in January after no 
change in December. Leading this decline, the index for industrial electric power decreased 6.5 
percent.

Crude goods

The Producer Price Index for crude materials for further processing moved up 0.8 percent in 
January. For the 3 months ended in January, crude materials prices rose 2.6 percent following a 
6.4-percent advance from July to October. The January monthly increase is attributable to the 
crude energy materials index, which climbed 2.3 percent. By contrast, prices for crude foodstuffs 
and feedstuffs and for crude nonfood materials less energy declined 0.4 percent and 0.3 percent, 
respectively. (See table B.) 

Crude energy:  The index for crude energy materials increased 2.3 percent in January. For the 3-
month period ended in January, prices for crude energy materials moved up 4.7 percent 
subsequent to a 9.5- percent jump for the 3 months ended October 2012. In January, the monthly 
advance in the crude energy index was the result of prices for crude petroleum, which climbed 
8.1 percent. (See table 2.)

Crude foods:  The index for crude foodstuffs and feedstuffs moved down 0.4 percent in 
January. From October to January, prices for crude foods rose 0.7 percent after increasing 6.4 
percent in the 3 months ended October 2012. Leading the January monthly decline, the oilseeds 
index fell 7.0 percent. Lower prices for corn also were a factor in the decrease in the crude 
foodstuffs and feedstuffs index. 

Crude core:  The index for crude nonfood materials less energy declined 0.3 percent in January. 
For the 3 months ended in January, crude core prices moved up 2.4 percent following a 1.8-
percent rise from July to October. Leading the January monthly decrease, the index for 
nonferrous scrap moved down 2.3 percent. Lower prices for gold ores also contributed to the 
decline in the crude core index.

Services Analysis

Trade industries:  The Producer Price Index for the net output of total trade industries declined 
1.1 percent in January, the largest decrease since a 1.4-percent drop in June 2010. (Trade indexes 
measure changes in margins received by wholesalers and retailers.) Most of the January decline 
can be traced to a 22.2-percent drop in margins received by clothing stores. Lower margins 
received by gasoline stations and discount department stores also were factors in the decrease in 
the total trade industries index.

Transportation and warehousing industries:  The Producer Price Index for the net output of 
transportation and warehousing industries jumped 1.0 percent in January, the largest advance 
since a 1.0-percent climb in March 2012. Leading the January rise was the index for couriers and 
express delivery services, which increased 5.0 percent. Higher prices received by the scheduled 
air transportation industry group and line-haul railroads also contributed to the advance in the 
transportation and warehousing industries index.

Services less trade, transportation, and warehousing:  The Producer Price Index for the net 
output of services less trade, transportation, and warehousing moved up 0.5 percent in January 
after decreasing 0.3 percent in December. Over twenty percent of the January advance can be 
attributed to a 1.4-percent rise in prices received by the depository credit intermediation industry 
group. Increases in the indexes for offices of lawyers and portfolio management also were factors 
in the gain in the services less trade, transportation, and warehousing index.
____________
The Producer Price Index for February 2013 is scheduled to be released on Thursday, 
March 14, 2013 at 8:30 a.m. (EDT).

                                                  *****


                                         Resampling of Industries

Effective with this release, the Producer Price Index (PPI) includes data for 37 resampled 
industries and 1 newly introduced industry classified according to the 2012 North American 
Industry Classification System (NAICS). The Bureau of Labor Statistics periodically updates the 
sample of producers providing data for the PPI to reflect current conditions more accurately 
when the structure, membership, technology, or product mix of an industry shifts. The first 
results of this systematic process were published in July 1986. Subsequent efforts have been 
completed at 6-month intervals.  
      
Industries selected for resampling in January 2013 are noted below. For information on specific 
index additions, deletions, and recodes effective this month, see the January 2013 issue of the 
PPI Detailed Report online at www.bls.gov/ppi/ppidr201301.pdf, or contact the PPI Section of 
Index Analysis and Public Information at ppi-info@bls.gov or (202) 691-7705.

NAICS
Code                    Industry
212210        Iron ore mining
212321        Construction sand and gravel mining
212322        Industrial sand mining
212393        Other chemical and fertilizer mineral mining
213113        Support activities for coal mining
236224        New health care building construction*
311412        Frozen specialty food manufacturing
311511        Fluid milk manufacturing
311941        Mayonnaise, dressing, and sauce manufacturing
321211        Hardwood veneer and plywood manufacturing
321912        Cut stock, resawing lumber, and planing
324122        Asphalt shingle and coating materials manufacturing
325510        Paint and coating manufacturing
325992        Photographic film and chemical manufacturing
326140        Polystyrene foam product manufacturing
326150        Urethane and other foam product manufacturing
327213        Glass container manufacturing
331318        Other aluminum rolling, drawing, and extruding
331410        Nonferrous metal (except aluminum) smelting and refining
331513        Steel foundries, except investment
332991        Ball and roller bearing manufacturing
333241        Food product machinery manufacturing
333613        Mechanical power transmission equipment manufacturing
334418        Printed circuit assembly manufacturing
334419        Other electronic component manufacturing
335991        Carbon and graphite product manufacturing
336390        Other motor vehicle parts manufacturing
337110        Wood kitchen cabinet and countertop manufacturing
337214        Office furniture, except wood, manufacturing
339114        Dental equipment and supplies manufacturing
447110        Gasoline stations with convenience stores
454310        Fuel dealers
486110        Pipeline transportation of crude oil
486910        Refined petroleum product pipeline transportation
491110        U.S. Postal Service
511140        Directory and mailing list publishers
511199        All other publishers
621610        Home health care services

* For further discussion of this newly introduced PPI, see the January 2013 issue of the PPI 
Detailed Report online at www.bls.gov/ppi/ppidr201301.pdf.

                                                *****


                              Recalculation of Seasonal Adjustment Factors

Effective with this release, seasonal adjustment factors have been recalculated to reflect price-
movement patterns during 2012 for stage-of-processing (SOP) and commodity-grouping indexes. 
This routine annual recalculation may affect previously published seasonally adjusted indexes 
and percent changes for January 2008 through December 2012. Revised seasonally adjusted data 
for this period, as well as seasonal adjustment factors for commodity indexes to be used through 
December 2013, were released February 15, 2013. To obtain this information, contact the PPI 
Section of Index Analysis and Public Information at ppi-info@bls.gov or (202) 691-7705, or visit 
the Producer Price Index homepage at www.bls.gov/ppi.

The table below provides monthly seasonally adjusted percent changes for the three major SOP 
categories during 2012, based on former and recalculated seasonal factors. These percent changes 
include final price data through August 2012 and may differ from values shown in tables A and 
B of this release, which include final price data through September 2012.


Over-the-month percent changes in major stage-of-processing indexes, 
seasonally adjusted, using former and recalculated seasonal factors for 2012

                Finished Goods       Intermediate Goods      Crude Goods     
Month         Former  Recalculated  Former  Recalculated  Former  Recalculated

January         0.3        0.1        0.0       -0.1        1.1        0.6
February         .4         .3         .7         .5         .9         .4
March           -.2         .1         .8        1.0       -2.7       -1.6
April           -.3        -.2        -.6        -.5       -4.5       -3.8
May            -1.0        -.6       -1.0        -.8       -3.5       -1.9
June             .2         .1        -.8        -.7       -3.4       -2.9
July             .3         .4        -.4        -.4        2.3        2.8
August          1.6        1.0        1.1        1.0        5.6        4.7
September       1.2        1.0        1.5        1.2        2.6        1.4
October         -.2        -.2        -.1        -.1         .9         .2
November        -.8        -.4       -1.2        -.9         .1         .4
December        -.2        -.3         .3         .1        2.5        1.4