Economic News Release

FOR DATA ONLY:  (202) 691-5200      USDL 08-1181
FOR TECHNICAL INFORMATION:          TRANSMISSION OF MATERIAL IN
(202) 691-7705                      THIS RELEASE IS EMBARGOED
MEDIA CONTACT:  (202) 691-5902      UNTIL 8:30 A.M. (EDT), TUESDAY,
http://www.bls.gov/ppi              AUGUST 19, 2008

                             Producer Price Indexes -- July 2008

	The Producer Price Index for Finished Goods advanced 1.2 percent in July, seasonally 
adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today.  This 
increase followed a 1.8-percent jump in June and a 1.4-percent rise in May.  At the earlier stages 
of processing, prices received by manufacturers of intermediate goods moved up 2.7 percent in 
July compared with a 2.1-percent gain in the prior month, and the index for crude materials for 
further processing climbed 4.2 percent subsequent to a 3.7-percent increase in June.  (See table 
A.)

        
        Among prices for finished goods, the index for energy goods rose 3.1 percent in July 
following a 6.0-percent jump in June.  Price increases for finished consumer foods also slowed, 
from 1.5 percent in June to 0.3 percent in July.  By contrast, partially offsetting the deceleration 
in finished goods prices, the index for finished goods other than foods and energy advanced 0.7 
percent after edging up 0.2 percent in June.

	Before seasonal adjustment, the Producer Price Index for Finished Goods moved up 1.4 
percent in July to 185.0 (1982 = 100).  From July 2007 to July 2008, the finished goods index 
advanced 9.8 percent.  Over the same period, prices for finished energy goods jumped 28.0 
percent, the index for finished goods other than foods and energy increased 3.5 percent, and 
prices for finished consumer foods rose 8.7 percent.  For the 12-month period ended in July, the 
index for intermediate goods advanced 16.6 percent, and prices received by crude goods 
producers surged 51.2 percent.

Finished goods

	The finished energy goods index increased 3.1 percent in July compared with a 6.0-
percent advance in June.  Home heating oil prices moved up 3.7 percent in July following a 12.4-
percent jump in the previous month, and the gasoline index turned down 0.2 percent after rising 
9.0 percent in June.  Prices for diesel fuel increased less than they had a month earlier.  
Conversely, slightly counteracting the deceleration in finished energy goods prices, the index for 
residential electric power climbed 2.0 percent subsequent to a 0.8-percent gain in June.  Prices 
for residential natural gas, asphalt, liquefied petroleum gas, and lubricating and similar oils also 
rose more than in the prior month.  (See table 2.)

	The index for finished consumer foods edged up 0.3 percent in July after jumping 1.5 percent in 
June.  Higher prices for beef and veal, fluid milk products, soft drinks, bakery products, and 
boxed meat outweighed lower prices for fresh vegetables (except potatoes), eggs for fresh use, 
fresh fruits and melons, natural cheese (except cottage cheese), and frozen juices and ades. 

        
        The index for finished goods less foods and energy climbed 0.7 percent in July after 
increasing 0.2 percent a month earlier.  Prices for light motor trucks moved up 0.8 percent 
subsequent to a 1.8-percent drop in June.  The indexes for pharmaceutical preparations, 
consumer plastic products, and communication and related equipment also turned up in July.  
Prices for turbine and turbine generator sets rose more than they had in the previous month.  
Conversely, the index for passenger cars increased 1.4 percent following a 2.2-percent gain in 
June.  Pet food prices also rose less in July.  The indexes for wood household furniture and for 
textbooks turned down after rising in the prior month. 

Intermediate goods

	The Producer Price Index for Intermediate Materials, Supplies, and Components 
advanced 2.7 percent in July following a 2.1-percent increase in June.  Prices for materials for 
nondurable manufacturing, intermediate food and feeds, and materials and components for 
construction rose more than they had in the previous month.  By contrast, partially offsetting the 
acceleration in intermediate goods prices, the indexes for intermediate energy goods and 
materials for durable manufacturing increased less than they had in June.  Excluding foods and 
energy, prices for intermediate goods moved up 2.0 percent in July after rising 1.3 percent a 
month earlier.  (See table B.)
	
        The index for materials for nondurable manufacturing climbed 5.4 percent in July 
compared with a 2.7-percent gain in the preceding month.  Prices for basic organic chemicals 
moved up 6.9 percent in July following a 2.6-percent advance a month earlier.  The indexes for 
plastic resins and materials, inedible fats and oils, paper, meats, and synthetic rubber also 
increased more than they had in June.  Prices for alkalies and chlorine turned up in July.  By 
contrast, the advance in the index for agricultural chemicals slowed to 7.9 percent from 14.2 
percent in June.  Prices for leather turned down in July.  (See table 2.)

        Prices for intermediate foods and feeds advanced 4.0 percent subsequent to a 1.0-percent 
increase in June.  The formula feeds index climbed 8.3 percent after rising 1.1 percent in the 
previous month.  Prices for meats and for shortening and cooking oils also increased more than 
they had a month earlier.  The index for corn, cottonseed, and soybean cake and meal turned up 
in July.  By contrast, the flour index moved down 7.8 percent following a 0.8-percent decrease in 
June.  Prices for processed eggs also declined more compared with the preceding month.  The 
indexes for natural, processed, and imitation cheese and for processed poultry turned down in 
July.
	
        The index for materials and components for construction advanced 1.7 percent in July 
after rising 1.5 percent in the preceding month.  The paving mixtures and blocks index increased 
14.5 percent subsequent to a 6.3-percent advance a month earlier.  Prices for asphalt felts and 
coatings and for plastic construction products also rose more than they had in June.  The index 
for nonferrous wire and cable turned up in July, and prices for cast iron pressure and soil pipe 
and fittings advanced following no change in the prior month.  By contrast, prices for steel mill 
products moved up 1.7 percent after jumping 8.1 percent in June.  The index for non-farm 
prefabricated metal building systems also advanced less than it had a month earlier.  Prices for 
softwood lumber and ready-mixed concrete turned down in July.
        
	The intermediate energy goods index moved up 4.3 percent subsequent to a 5.0-percent 
increase a month earlier.  Diesel fuel prices advanced 2.6 percent following a 6.7-percent jump in 
June.  The indexes for jet fuel and home heating oil also rose less than in the preceding month.  
Gasoline prices declined after climbing in June.  By contrast, the index for electric power 
increased 1.3 percent compared with a 0.3-percent decline in the previous month.  Price 
increases for residual fuels, utility natural gas, and asphalt accelerated in July.  

        Prices for materials for durable manufacturing moved up 1.5 percent following a 1.7-
percent increase in June.  Leading this deceleration, the steel mill products index advanced 1.7 
percent subsequent to an 8.1-percent rise in the previous month.  Prices for softwood lumber and 
for building paper and board turned down in July.  By contrast, the index for primary nonferrous 
metals rose 3.2 percent in July after decreasing 5.8 percent a month earlier.  Similarly, prices for 
copper and brass mill shapes, nonferrous wire and cable, and paints and allied products also 
turned up in July.  The plastic resins and materials index advanced more than it had in the prior 
month.
        
Crude goods

	The Producer Price Index for Crude Materials for Further Processing increased 4.2 
percent in July following a 3.7-percent advance in June.  Prices for crude energy materials rose 
more than in June.  The index for crude nonfood materials less energy turned up after falling a 
month earlier.  By contrast, partially offsetting the acceleration in crude goods prices, the index 
for crude foodstuffs and feedstuffs increased less in July than it had in the prior month.  (See 
table B.)

        The index for crude energy materials climbed 6.9 percent in July following a 5.4-percent 
rise a month earlier.  The increase in the index for natural gas accelerated to 7.8 percent from 5.2 
percent in June.  Prices for crude petroleum advanced 6.7 percent following a 4.4-percent rise in 
the previous month.  Conversely, the index for coal moved up 2.1 percent in July after jumping 
14.4 percent in the prior month.  (See table 2.)
        
        The index for crude nonfood materials less energy turned up 3.4 percent in July after 
edging down 0.2 percent a month earlier.  The index for nonferrous scrap climbed 5.0 percent 
following a 5.6-percent drop in June.  Prices for wastepaper and for stainless and alloy steel 
scrap also turned up after falling in the previous month.  The indexes for carbon steel scrap and 
gold ores advanced more than in June.  Conversely, the rise in the index for phosphates slowed 
to 9.6 percent in July from 25.4 percent in the prior month.  Prices for construction sand, gravel, 
and crushed stone, and for pulpwood turned down after increasing in June.
        
        The index for crude foodstuffs and feedstuffs inched up 0.1 percent after advancing 3.5 
percent in June.  In July, higher prices for slaughter steers and heifers, soybeans, slaughter 
chickens, and slaughter cows and bulls slightly outweighed lower prices for wheat, corn, 
ungraded chicken eggs, and fresh vegetables, except potatoes.

Net output price indexes

Mining, Utilities, and Manufacturing Industries.  The Producer Price Index for the Net Output 
of Total Mining, Utilities, and Manufacturing Industries climbed 2.2 percent in July following a 
1.8-percent advance in June.  (Net output price indexes are not seasonally adjusted.)  Prices 
received by the livestock slaughtering industry jumped 6.8 percent in July after increasing 0.7 
percent a month earlier.  The indexes for animal feed manufacturing (excluding pet food), natural 
gas distribution, and crude petroleum and natural gas extraction also moved up more than they 
had in June.  Prices received by the industry for automobile, light truck, and utility vehicle 
manufacturing turned up in July.  By contrast, partially offsetting the acceleration in the index 
for total mining, utilities, and manufacturing industries, the index for electric power distribution 
advanced 1.9 percent following a 3.3-percent rise in June.  Prices received by the industries for 
phosphate fertilizer manufacturing and petroleum refining also increased less in July than they 
had in the preceding month.  The index for cheese manufacturing declined after moving up in 
June.  In July, the index for total mining, utilities, and manufacturing industries was 118.9 
(December 2006 = 100), 12.9 percent above its year-ago level.

Trade Industries.  The Producer Price Index for the Net Output of Total Trade Industries 
climbed 1.1 percent in July following a 0.7-percent rise in June.  (Trade indexes measure 
changes in margins received by wholesalers and retailers.)  Margins received by wholesalers of 
nondurable goods edged up 0.2 percent in July after dropping 4.0 percent in the prior month.  
The margin indexes for grocery stores (excluding convenience stores), electronic shopping and 
mail-order houses, and tire dealers also turned up after falling in June.  Margins received by 
gasoline stations with convenience stores and by pharmacies and drug stores increased more in 
July than they had a month earlier.  By contrast, margins received by merchant wholesalers of 
durable goods climbed 1.3 percent following a 2.6-percent rise a month earlier.  The margin 
index for non-discount department stores also advanced less than it had in June.  Margins 
received by family clothing stores turned down in July.  In July, the index for total trade 
industries was 110.1 (December 2006 = 100), 5.5 percent above its year-ago level.

Transportation and Warehousing Industries.  The Producer Price Index for the Net Output of 
Total Transportation and Warehousing Industries rose 0.8 percent in July after climbing 2.3 
percent in June.  The increase in prices received by the scheduled passenger air transportation 
industry slowed to 0.5 percent in July from 5.8 percent in the previous month.  The indexes for 
general freight trucking, line-haul railroads, deep sea freight transportation, and both local and 
long distance specialized freight trucking of new goods also advanced less than they had in June.  
Prices received by the scheduled freight air transportation industry turned down in July.  By 
contrast, the index for the couriers industry increased 2.4 percent following a 1.2-percent gain in 
June.  Prices received by the industries for pipeline transportation of crude oil and for general 
warehousing and storage moved up in July after no change in the prior month.  In July, the index 
for total transportation and warehousing industries was 115.9 (December 2006 = 100), 10.3 
percent above its year-ago level.

Traditional Service Industries.  The Producer Price Index for the Net Output of Total 
Traditional Service Industries edged down 0.2 percent in July after inching up 0.1 percent in 
June.  Leading this downturn, prices received by the commercial banking industry dropped 5.5 
percent in July following a 0.4-percent decline in the preceding month.  Prices received by 
casino hotels also fell more than in June.  The indexes for the securities, commodity contracts, 
and like activities industry sector and for the engineering services industry turned down in July.   
Conversely, the index for savings institutions rose 1.2 percent following a 2.7-percent decline in 
June.  Prices received by the industries for software publishers, offices of certified public 
accountants, and real estate agents and brokers also turned up in July after falling in the previous 
month.  The index for passenger car rental rose more than in June.  In July, the index for total 
traditional service industries was 101.8 (December 2006 = 100), 0.4 percent above its year-ago 
level.

                                         *****
Producer Price Index data for August 2008 are scheduled to be released on Friday, September 
12, 2008 at 8:30 a.m. (EDT).

                                         *****

                                Resampling of Industries

	Effective with this release, the Producer Price Index (PPI) includes data for 58 resampled and 4 
newly introduced industries classified according to the 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.  
        For information on specific index additions, deletions, and recodes that are effective with this 
semiannual update, see the July 2008 issue of the PPI Detailed Report online at 
http://www.bls.gov/ppi/ppidr200807.pdf, or contact the Division of Industrial Prices and Price Indexes, 
Section of Index Analysis and Public Information at ppi-info@bls.gov or (202) 691-7705.

NAICS
Code                    Industry

212111          Bituminous coal and lignite surface mining
212112          Bituminous coal underground mining
212290          Other metal ore mining
23811X          Concrete contractors, nonresidential building work*
23816X          Roofing contractors, nonresidential building work*
23821X          Electrical contractors, nonresidential building work*
23822X          Plumbing/HVAC contractors, nonresidential building work*
311230          Breakfast cereal manufacturing
311422          Specialty canning
311611          Animal, except poultry, slaughtering
311612          Meat processed from carcasses
311615          Poultry processing
311911          Roasted nuts and peanut butter manufacturing
311920          Coffee and tea manufacturing
311991          Perishable prepared food manufacturing
311999          All other miscellaneous food manufacturing
313111          Yarn spinning mills
313112          Yarn texturizing and twisting mills
313113          Thread mills
313230          Nonwoven fabric mills
313241          Weft knit fabric mills
313249          Other knit fabric and lace mills
323112          Commercial flexographic printing
325132          Synthetic organic dye and pigment manufacturing
325192          Cyclic crude and intermediate manufacturing
327112          Vitreous china and earthenware articles manufacturing
331521          Aluminum die-casting foundries
331524          Aluminum foundries, except die-casting
331528          Other nonferrous foundries, except die-casting
332114          Custom roll forming
332721          Precision turned product manufacturing
332722          Bolt, nut, screw, rivet, and washer manufacturing
332812          Metal coating and nonprecious engraving
333618          Other engine equipment manufacturing
333992          Welding and soldering equipment manufacturing
334290          Other communications equipment manufacturing
334412          Bare printed circuit board manufacturing
334414          Electronic capacitor manufacturing
334518          Watch, clock, and part manufacturing
335129          Other lighting equipment manufacturing
335999          Miscellaneous electrical equipment manufacturing
336413          Other aircraft parts and equipment
336999          All other transportation equipment manufacturing
337211          Wood office furniture manufacturing
337212          Custom architectural woodwork and millwork
339920          Sporting and athletic goods manufacturing
443120          Computer and software stores
448110          Men's clothing stores
448120          Women's clothing stores
448140          Family clothing stores
481211          Nonscheduled air passenger chartering**
481212          Nonscheduled air freight chartering**
492210          Local messengers and local delivery
511191          Greeting card publishers
515120          Television broadcasting
518210          Data processing and related services
531130          Lessors of miniwarehouses and self-storage units
541219          Other accounting services
621111          Offices of physicians, except mental health
622110          General medical and surgical hospitals
622210          Psychiatric and substance abuse hospitals
622310          Other specialty hospitals

* For further discussion of these newly introduced PPIs, see the July 2008 issue of the PPI Detailed 
Report online at http://www.bls.gov/ppi/ppidr200807.pdf, or contact the Division of Industrial Prices 
and Price Indexes, Section of Index Analysis and Public Information at ppi-info@bls.gov or (202) 691-
7705.

** NAICS 481211 and NAICS 481212 were previously service lines within a single industry, NAICS 
481210.