The following is the unedited transcript of the news release from the U.S. Department of Labor.


The Producer Price Index for Finished Goods increased 0.9% in December, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This rise followed a 2.0% advance in November and a 1.6% decline in October. At the earlier stages of processing, prices received by manufacturers of intermediate goods moved up 0.5% in December after climbing 0.7% a month earlier, and the crude goods index increased 2.9% following a 15.7% gain in November.

Among prices for finished goods, the index for energy goods rose 2.5% in December compared with a 6.1% advance in the prior month .Price increases for finished goods other than foods and energy also slowed in December, gaining 0.2% following a 1.3% November advance. By contrast, the index for finished consumer foods moved up 1.7% after rising 0.1% in the previous month.

Before seasonal adjustment, the Producer Price Index for Finished Goods advanced 0.5% in December to 160.5 (1982 = 100). In 2006, finished goods prices increased 1.1% following a 5.4% rise in 2005. This slower rate of advance is attributable to the index for finished energy goods, which fell 2.0% in 2006 after climbing 23.9 percent a year earlier. By contrast, prices for finished goods other than foods and energy moved up 2.0% in 2006 following a 1.4% gain in 2005, and the index for finished consumer foods rose slightly more than it had a year earlier-1.8% and 1.7%, respectively. At the earlier stages of processing, prices received by intermediate goods producers increased 2.8% in 2006 compared with an 8.6% advance in the preceding year, while the crude goods index declined 2.4% after moving up 21.1% in 2005.

Finished goods

The index for finished energy goods rose 2.5% in December following a 6.1% jump in the prior month.Leading this deceleration, gasoline prices increased 7.1% after surging 17.9% in November.The indexes for residential natural gas, home heating oil, and diesel fuel also moved up less in December than they had a month earlier. Prices for finished lubricants were unchanged following gains in November. By contrast, the index for liquefied petroleum gas advanced 4.0% in December after decreasing 2.8% in the previous month. Prices for residential electric power also turned up after declining in November.

The index for finished goods other than foods and energy advanced 0.2% in December following a 1.3% jump in the preceding month. Price increases for light motor trucks slowed to 0.7% after climbing 13.7% in November. The indexes for passenger cars, alcoholic beverages, cosmetics and other toilet preparations, semiconductor manufacturing equipment, agricultural machinery and equipment, and commercial furniture turned down in December. Civilian aircraft prices were unchanged compared with advances in November, while the index for heavy motor trucks rose less in December than it had a month earlier. By contrast, prices for pharmaceutical preparations moved up 0.6% following a 0.4% decline in November. The indexes for integrating and measuring instruments, railroad equipment, and sanitary paper products also turned up in December. Prices for mobile homes fell less than they had in November.

The index for finished consumer foods increased 1.7% in December after inching up 0.1% in the previous month. Prices for fresh and dry vegetables jumped 21.7% following a 14.2% drop in November. The indexes for fresh fruits and melons, finfish and shellfish, and processed turkeys also turned up in December. Prices for processed young chickens and processed fruits and vegetables rose more than they had in November. By contrast, the soft drinks index decreased 0.5% in December after advancing 2.1% a month earlier. Prices for beef and veal and for bakery products also moved down following gains in November. The index for dairy products increased less in December than it had in the prior month.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components increased 0.5% in December following a 0.7% advance in November. Prices for intermediate energy goods and for intermediate foods and feeds rose less than they had in the previous month. The index for materials for nondurable manufacturing fell more in December than in the preceding month. Conversely, the indexes for construction materials, as well as materials for durable manufacturing, declined less in December than they had in the prior month. Prices for intermediate goods less foods and energy fell 0.1% after decreasing 0.3% a month earlier.

The index for intermediate energy goods increased 2.3% in December compared with a 4.2% gain in November. Diesel fuel prices moved up 10.2% after advancing 14.6% in the preceding month. The indexes for gasoline, industrial natural gas, and residual fuels also rose less than they had in November. Prices for natural gas to electric utilities and commercial electric power turned down in December after increasing in the prior month. Alternatively, the jet fuels index advanced 12.6% following a 5.4% decline in November. Prices for liquefied petroleum gas also turned up in December after falling in November. In 2006, prices for intermediate energy goods declined 4.4% after advancing 26.2% in 2005.

The rate of increase in the intermediate foods and feeds index slowed from 3.4% in November to 1.5% in December. Prices for prepared animal feeds rose 4.0% in December compared with a 7.4% gain a month earlier. The indexes for natural, processed, and imitation cheese and for shortening and cooking oils also advanced less than they had in November. Beef and veal prices turned down in December after rising in the preceding month. The indexes for flour and for refined sugar and byproducts fell more in December than they had a month earlier. By contrast, prices for processed young chickens jumped 10.4% in December following a 1.5% gain in the prior month. In 2006, the index for intermediate foods and feeds advanced 5.7% following a 2.4% increase in 2005.

Prices for materials for nondurable manufacturing declined 0.5% in December after falling 0.4% in November. The indexes for plastic resins and materials, finished fabrics, primary basic organic chemicals, synthetic rubber, and gray fabrics moved down in December. These decreases outweighed rising prices for ethanol, paper, inedible fats and oils, fertilizer materials, intermediate basic organic chemicals, and basic inorganic chemicals. The index for materials for nondurable manufacturing advanced 2.1% in 2006 following an 8.9% gain in 2005.

The index for materials and components for construction moved down 0.1% in December after declining 0.5% in November. Prices for steel mill products fell 0.4% compared with a 4.4% drop in the prior month. The indexes for plastic construction products and softwood lumber also decreased at slower rates than they had a month earlier. Prices for asphalt felts and coatings, wiring devices, and mineral wool for structural insulation turned up after declining in November. By contrast, the index for nonferrous wire and cable moved down 2.6% following a 1.1% decline in November. Prices for concrete products rose less in December than in the prior month. During 2006, prices for materials and components for construction advanced 4.3% after climbing 6.1% in the previous year.

The index for materials for durable manufacturing declined 0.2% in December following a 0.5-percent decrease in November. Falling prices for semifinished steel mill products; hot rolled steel bars, plates, and structural shapes; thermoplastic resins; copper and brass mill shapes; and building paper and board outweighed price increases for cold rolled steel sheet and strip, hot rolled steel sheet and strip, and primary aluminum (except extrusion billet). In 2006, the index for materials for durable manufacturing jumped 13.1% following a 5.9% advance in 2005.

Crude goods

The Producer Price Index for Crude Materials for Further Processing rose 2.9% in December after climbing 15.7% in November. Prices for crude energy materials and for foodstuffs and feedstuffs advanced less than they had a month earlier. Conversely, the index for basic industrial materials rose more than it had in the preceding month.

Price increases for crude energy materials slowed to 5.5% in December from 35.8% a month earlier. The index for natural gas advanced 6.8% following a 92.8% jump in the previous month. The coal index decreased 0.6% after edging down 0.2% in the prior month. By contrast, crude petroleum prices turned up 5.0% following a 1.2% decline in November. In 2006, the crude energy materials index fell 11.4% after climbing 42.2 % in 2005.

The index for crude foodstuffs and feedstuffs inched up 0.2% after increasing 2.8% in the preceding month. In December, rising prices for fluid milk, fresh and dry vegetables, fresh fruits and melons, unprocessed finfish, and alfalfa hay more than offset declining prices for slaughter turkeys, wheat, and slaughter cattle. In 2006, crude foodstuffs and feedstuffs prices rose 2.9% following a 1.6% increase in 2005.

The basic industrial materials index moved up 1.0% after rising 0.5% a month earlier. Iron and steel scrap prices turned up 6.8% in December following a 5.6% decrease in November. The index for softwood logs, bolts, and timber also increased following a decline in the previous month. Prices for wastepaper rose more than they had in November. By contrast, the advance in the gold ores index slowed to 1.2% in December after rising 12.0% a month earlier. Prices for aluminum base scrap also increased less in December than a month earlier. The indexes for copper base scrap and for construction sand, gravel, and crushed stone turned down after rising in the prior month. Prices for iron ore fell after no change in November. The basic industrial materials index climbed 16.7% in 2006 following a 5.2% gain in 2005.

Mining.