Price movements February 2004

PPI Detailed Report, Feb, 2004

The Producer Price Index for Finished Goods edged up 0.1 percent in February, seasonally adjusted. This increase followed a 0.6-percent jump in January and a 0.2-percent increase in December. At the earlier stages of processing, prices received by manufacturers of intermediate goods rose 0.9 percent in February, after advancing 0.8 percent in January. The crude goods index increased 2.5 percent, compared with a 2.8-percent rise in the prior month. (See table A.)

Among finished goods, the rate of increase in the index for finished energy goods slowed to 0.2 percent in February from 4.7 percent in January. Prices for finished goods other than foods and energy edged up 0.1 percent in February, after rising 0.3 percent in the preceding month. By contrast, the finished consumer foods index turned up 0.2 percent, following a 1.4-percent drop in January.

Before seasonal adjustment, the Producer Price Index for Finished Goods decreased 0.1 percent to 145.3 (1982=100). From February 2003 to February 2004, finished goods prices rose 2.1 percent. During the same period, the indexes for finished energy goods, finished consumer foods, and finished goods other than foods and energy moved up 3.9, 4.0, and 1.0 percent, respectively. At the earlier stages of processing, prices for intermediate goods increased 2.7 percent for the 12 months ended in February 2004, while the index for crude goods rose 10.7 percent.

Finished goods

Prices for finished energy goods increased 0.2 percent in February, after advancing 4.7 percent in the prior month. The rate of increase in the gasoline index slowed to 2.0 percent in February from 14.1 percent in January. Prices for home heating oil, liquefied petroleum gas, and diesel fuel turned down, compared with increases in the previous month. On the other hand, the index for residential natural gas rose 2.6 percent in February, after posting a 1.4-percent increase in January. The rate of increase for residential electric power prices picked up in February, advancing 0.4 percent compared with a 0.1-percent rise in the prior month.

The index for finished goods other than foods and energy increased 0.1 percent, following a 0.3-percent increase in January. In February, rising prices for passenger car pneumatic tires, alcoholic beverages, passenger cars, surgical appliances, railroad cars, and industrial material handling equipment slightly outweighed falling prices for light motor trucks, communication and related equipment, pharmaceutical preparations, and household appliances.

Prices for finished consumer foods turned up 0.2 percent in February, after declining 1.4 percent in the prior month. In February, increasing prices for processed young chickens, eggs for fresh use, dairy products, and pork outweighed falling prices for fresh and dry vegetables, beef and veal, fresh fruits and melons, and finfish and shellfish.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components advanced 0.9 percent in February, after registering a 0.8-percent increase in the previous month. Prices for materials for durable manufacturing, materials and components for construction, intermediate energy goods, materials for nondurable manufacturing, and intermediate foods and feeds rose. Excluding food and energy prices, the index for intermediate materials went up 0.9 percent, following a 0.6-percent gain in January. (See table B.)

Prices for materials for durable manufacturing climbed 3.5 percent in February, compared with a 1.0-percent gain in the preceding month. The cold rolled steel sheet and strip index jumped 12.4 percent, after moving up 0.4 percent a month earlier. Prices for primary nonferrous metals; hot rolled steel bars, plates, and structural shapes; and semifinished steel mill products also increased at a quicker rate than they did in January. The indexes for building paper and board, aluminum mill shapes, and plywood turned up, following declines in the prior month. On the other hand, prepared paint prices fell 0.3 percent in February, after rising 0.4 percent in the previous month. The indexes for hardwood lumber, cold finished steel bars, and copper and brass mill shapes rose less than they did in January, while prices for industrial textile products showed no change in February, after advancing a month earlier.

The index for materials and components for construction moved up 1.4 percent in February, following a 0.3-percent increase in the prior month. Plywood prices surged 15.2 percent, after falling 9.1 percent a month earlier. The indexes for mineral wool for structural insulation and gypsum products also turned up in February, following declines in the previous month. Prices for fabricated structural metal products, concrete products, softwood lumber, and steel mill products rose more than they did in January. By contrast, the plastic construction products index moved down 1.4 percent in February, compared with a 1.0-percent gain in the preceding month. Prices for architectural coatings and molded case circuit breakers also turned down, after advancing in January. The indexes for millwork and hardwood lumber rose less than they did in the previous month.