Full Report
March 15, 2022 - The Producer Price Index for final demand increased 0.8 percent in February, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This rise followed advances of 1.2 percent in
January and 0.4 percent in December 2021. (See table A.) On an unadjusted basis, final demand prices moved up 10.0 percent for the 12 months ended in February.In February, the advance in the index for final demand can be attributed to prices for final demand goods, which rose 2.4 percent. The index for final demand services was unchanged.
Prices for final demand less foods, energy, and trade services rose 0.2 percent in February following a 0.8-percent increase in January. For the 12 months ended in February, the index for final demand less foods, energy, and trade services moved up 6.6 percent.
Final Demand
Final demand goods: Prices for final demand goods jumped 2.4 percent in February, the largest advance since data were first calculated in December 2009. Two-thirds of the broad-based increase can be traced to an 8.2-percent rise in the index for final demand energy. Prices for final demand goods less foods and energy and for final demand foods also moved higher, 0.7 percent and 1.9 percent, respectively.
Product detail: Nearly 40 percent of the February increase in prices for final demand goods can be attributed to the index for gasoline, which rose 14.8 percent. Prices for diesel fuel, electric power, jet fuel, motor vehicles and equipment, and dairy products also advanced. In contrast, the index for fresh and dry vegetables decreased 9.4 percent. Prices for beef and veal and for hot rolled steel sheet and strip also moved lower. (See table 2.)
Final demand services: Prices for final demand services were unchanged in February after a 1.0- percent increase in January. In February, a 1.9-percent rise in the index for final demand transportation and warehousing services and a 0.2-percent advance in margins for final demand trade services offset a 0.4-percent decrease in the index for final demand services less trade, transportation, and warehousing. (Trade indexes measure changes in margins received by wholesalers and retailers.)
Product detail: Within the index for final demand services in February, prices for truck transportation of freight moved up 2.0 percent. The indexes for food and alcohol retailing, machinery and vehicle wholesaling, transportation of passengers (partial), and outpatient care (partial) also rose. Conversely, prices for portfolio management decreased 4.2 percent. The indexes for guestroom rental; apparel, jewelry, footwear, and accessories retailing; automobile retailing (partial); and residential real estate loans (partial) also declined.
Source: BLS
