Price movements February 2004

PPI Detailed Report, Feb, 2004

Price increases for intermediate energy goods slowed from 2.7 percent in January to 0.6 percent in February. Half of this deceleration was due to the index for gasoline, which rose 2.0 percent after jumping 14.1 percent in the previous month. Prices for jet fuels also rose more slowly in February. The indexes for diesel fuel, liquefied petroleum gas, and home heating oil turned down, following gains a month earlier. Alternatively, the natural gas to electric utilities index advanced 4.4 percent in February, compared with a 6.2-percent drop in the prior month. The indexes for commercial electric power, commercial natural gas, and industrial electric power also turned up, after falling in January, while industrial natural gas prices increased more in February than they did in the preceding month.

The index for materials for nondurable manufacturing rose 0.7 percent in February, following a 1.3-percent gain in the prior month. This deceleration largely reflects smaller increases for basic organic chemicals prices, which rose 0.8 percent in February after posting a 6.0-percent increase in January. The leather index also advanced at a slower rate than it did in the preceding month. Prices for processed yarns and threads showed no change, following a gain in the previous month. The finished fabrics index fell, after inching up in January. On the other hand, paper prices turned up 0.6 percent in February, after decreasing 0.8 percent a month earlier. The indexes for paint materials and fertilizer materials also advanced, following declines in the preceding month, while prices for paperboard fell less than they did in January.

The intermediate foods and feeds index turned up 0.2 percent in February, after falling 1.0 percent in the prior month. In February, rising prices for processed young chickens; flour; pork; natural, processed, and imitation cheese; butter; and liquid milk products outweighed falling prices for beef and veal, prepared animal feeds, shortening and cooking oils, confectionery materials, and fluid milk products.

Crude goods

The Producer Price Index for Crude Materials for Further Processing advanced at a 2.5-percent rate in February, after posting a 2.8-percent gain in January. Prices for crude energy materials showed no change in February, after rising in the prior month. By contrast, the index for crude foodstuffs and feedstuffs turned up, after falling in January, while prices for basic industrial materials increased at a faster pace in February than they did in the prior month. (See table B.)

The index for crude energy materials showed no change in February, following a 12.5-percent rise in the preceding month. Natural gas prices moved down 0.6 percent, after jumping 17.8 percent a month earlier. The index for crude petroleum declined 1.9 percent, compared with an 8.1-percent gain in January. On the other hand, coal prices went up 8.7 percent in February, after registering a 1.6-percent drop in the prior month.

The index for crude foodstuffs and feedstuffs advanced 3.6 percent in February, following a 6.9-percent decrease in the previous month. Prices for slaughter broilers and fryers rose 19.8 percent, compared with a 2.6-percent decline in January. The indexes for slaughter hogs and fluid milk also turned up, after declining a month earlier. The indexes for slaughter cattle, fresh vegetables (except potatoes), and alfalfa hay decreased at a slower rate than they did in the prior month. Alternatively, slaughter turkey prices fell 2.0 percent in February, following a 9.5-percent gain in the preceding month. The unprocessed finfish index also turned down, following increases in January, while prices for wheat and for fresh fruits and melons declined more in February than they did in the prior month.