Economic News Release

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8:30 a.m. (EDT), Wednesday, May 15, 2013

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                      PRODUCER PRICE INDEXES - APRIL 2013


The Producer Price Index for finished goods decreased 0.7 percent in April, seasonally 
adjusted, the U.S. Bureau of Labor Statistics reported today. Prices for finished goods fell 0.6 
percent in March and increased 0.7 percent in February. At the earlier stages of processing, 
prices received by manufacturers of intermediate goods declined 0.6 percent, and the crude 
goods index moved down 0.4 percent. On an unadjusted basis, prices for finished goods 
advanced 0.6 percent for the 12 months ended April 2013, the smallest 12-month rise since a 
0.5-percent increase in July 2012. (See table A.)

Stage-of-Processing Analysis

Finished goods

In April, over eighty percent of the decrease in the finished goods index can be traced to a 2.5-
percent drop in prices for finished energy goods. Also contributing to the decline in finished 
goods prices, the index for finished consumer foods fell 0.8 percent. By contrast, prices for 
finished goods less foods and energy advanced 0.1 percent in April. 

Finished energy:  The index for finished energy goods moved down 2.5 percent in April after 
falling 3.4 percent in March. Over ninety percent of the April decrease is attributable to 
gasoline prices, which dropped 6.0 percent. Lower prices for home heating oil and residential 
electric power also were factors in the decline in the index for finished energy goods. (See table 
2.)

Finished foods:  Prices for finished consumer foods moved down 0.8 percent in April, the 
largest decrease since a 1.0-percent drop in May 2011. Half of the April decline can be traced 
to the index for fresh and dry vegetables, which fell 10.6 percent. Lower meat prices also were 
a major factor in the decrease in the index for finished consumer foods.

Finished core:  The index for finished goods less foods and energy inched up 0.1 percent in 
April following increases of 0.2 percent in each of the previous four months. Leading the April 
rise, prices for pharmaceutical preparations climbed 0.6 percent.

Intermediate goods

The Producer Price Index for intermediate materials, supplies, and components fell 0.6 percent 
in April subsequent to a 0.9-percent decrease a month earlier. Accounting for over two-thirds of 
the broad-based decline in April, prices for intermediate energy goods dropped 2.1 percent. The 
index for intermediate goods less foods and energy moved down 0.2 percent, and prices for 
intermediate foods and feeds fell 0.9 percent. For the 12 months ended in April, the 
intermediate goods index decreased 1.0 percent, the largest year-over-year decline since a 1.0-
percent drop in August 2012. (See table B.) 

Intermediate energy:  Prices for intermediate energy goods fell 2.1 percent in April after a 4.7-
percent decline in March. A major factor in the April decrease was the index for diesel fuel, 
which moved down 3.5 percent. Lower prices for gasoline and jet fuel also contributed 
significantly to the decline in the index for intermediate energy goods. (See table 2.)

Intermediate core:  The index for intermediate goods less foods and energy moved down 0.2 
percent in April following four consecutive advances. Leading this decline, prices for primary 
basic organic chemicals dropped 5.3 percent. Falling prices for plastic resins and materials also 
contributed to the decrease in the intermediate core index. 

Intermediate foods:  Prices for intermediate foods and feeds moved down 0.9 percent in April 
following a 0.1-percent increase in the prior month. Nearly three-quarters of the April decline 
was the result of a 2.6-percent decrease in the prepared animal feeds index. 

Crude goods

The Producer Price Index for crude materials for further processing declined 0.4 percent in 
April. For the 3 months ended in April, crude goods prices moved down 3.2 percent subsequent 
to a 2.6-percent increase for the 3 months ended in January. The April monthly decrease was 
led by the index for crude foodstuffs and feedstuffs, which fell 2.6 percent. Prices for crude 
nonfood materials less energy moved down 2.8 percent. By contrast, the crude energy materials 
index advanced 3.7 percent. (See table B.)

Crude foods:  Prices for crude foodstuffs and feedstuffs moved down 2.6 percent in April. 
From January to April, the index for crude foods decreased 2.9 percent compared with a 0.5-
percent rise from October to January. In April, about seventy percent of the monthly decline is 
attributable to prices for corn, which fell 11.5 percent. Decreases in the indexes for hay, 
hayseeds, and oilseeds and for fresh vegetables, except potatoes, also were factors in the drop 
in crude foods prices. (See table 2.)

Crude core:  In April, prices for crude nonfood materials less energy decreased 2.8 percent. For 
the 3 months ended in April, the crude core index fell 3.5 percent after rising 2.8 percent in the 
previous 3-month period. Accounting for more than one-third of the monthly decline in April, 
nonferrous metals prices moved down 2.6 percent. Lower prices for corn also were a factor in 
the crude core decrease.

Crude energy:  The index for crude energy materials increased 3.7 percent in April. From 
January to April, crude energy prices dropped 3.0 percent compared with a 4.7-percent climb 
for the 3 months ended in January. The April monthly advance is mostly attributable to a 15.5-
percent jump in the index for natural gas.

Services Analysis

Trade industries:  The Producer Price Index for the net output of total trade industries 
advanced 1.6 percent in April, the largest increase since a 1.6-percent increase in August 2011. 
(Trade indexes measure changes in margins received by wholesalers and retailers.) Forty 
percent of the April rise is attributable to margins received by merchant wholesalers of durable 
goods, which advanced 2.7 percent. Higher margins received by discount department stores and 
gasoline stations also contributed to the increase in the total trade industries index.

Transportation and warehousing industries:  The Producer Price Index for the net output of 
transportation and warehousing industries moved down 0.3 percent in April after rising 0.7 
percent in March. Leading the decrease, prices for scheduled air transportation fell 1.8 percent. 
Lower prices received by the industry groups for truck transportation and inland water 
transportation also were factors in the decline 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 0.4 percent in April 
after declining 0.3 percent in March. Nearly a quarter of this increase is attributable to a 4.3-
percent advance in the index for wireless telecommunications carriers. Higher prices received 
by the industries for portfolio management and commercial banking also contributed to the rise 
in the index for services less trade, transportation, and warehousing.
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The Producer Price Index for May 2013 is scheduled to be released on Friday, June 14, 2013 
at 8:30 a.m. (EDT).