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


Producer Price Indexes - January 2007

The Producer Price Index for Finished Goods declined 0.6% in January, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This decrease followed a 0.9% advance in December and a 1.8% jump in November. At the earlier stages of processing, prices for intermediate goods moved down 0.7% compared with a 0.5% increase in the prior month. The crude goods index decreased 6.3% after rising 2.8% in December.

Among finished goods, prices for energy goods fell 4.6% in January following a 2.2% rise in the prior month. The rate of increase in the finished consumer foods index slowed to 1.1% in January from 1.5% in December. By contrast, prices for finished goods other than foods and energy advanced 0.2% for the second consecutive month.

Before seasonal adjustment, the Producer Price Index for Finished Goods declined 0.2% in January to 160.2 (1982 = 100). From January 2006 to January 2007, prices for finished goods edged up 0.2%. Over the same period, the finished consumer foods index advanced 2.7%, and prices for finished goods other than foods and energy moved up 1.8%. Conversely, the index for finished energy goods fell 7.3%. For the 12 months ended January 2007, intermediate goods prices increased 0.9%, while the index for crude goods decreased 8.0%.

Finished goods

Finished energy goods prices declined 4.6% in January compared with a 2.2% advance in December. The gasoline index dropped 13.0% following a 5.0% increase in the previous month. Prices for liquefied petroleum gas, home heating oil, residential natural gas, and diesel fuel also turned down after rising in December. Alternatively, the residential electric power index increased 0.4% in January following a 0.3% rise a month earlier.

The increase in the index for finished consumer foods slowed to 1.1% in January from 1.5% in the previous month. The index for processed young chickens rose 4.6% after climbing 9.1% in December. Prices for processed fruits and vegetables also rose less than they had in the prior month. The indexes for fresh fruits and melons and for fresh and dry vegetables turned down in January following advances a month earlier. By contrast, beef and veal prices moved up 3.3% in January after falling 2.4 % in the preceding month. The indexes for pork and bakery products also turned up in January, while prices for dairy products rose more than they had in December.

The index for finished goods other than foods and energy increased 0.2% in January after moving up at the same rate in December. In January, rising prices for pharmaceutical preparations; civilian aircraft; cigarettes; women''s, girls'', and infants'' apparel; heavy motor trucks; household appliances; book publishing; and commercial furniture outweighed price declines for light motor trucks, electronic computers, and alcoholic beverages.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components declined 0.7% in January following a 0.5% increase in December. The majority of this downturn is attributable to prices for intermediate energy goods, which fell in January after rising a month earlier. The index for materials for durable manufacturing decreased more than it had in December. Conversely, prices for materials for nondurable manufacturing declined less than they had a month earlier. The index for materials and components for construction turned up in January, and prices for intermediate foods and feeds increased more than they had in December. The index for intermediate goods other than foods and energy was unchanged for the second consecutive month.

Prices for intermediate energy goods declined 3.8% in January subsequent to a 2.5% advance in the prior month. The index for diesel fuel fell 13.2% following an 8.9% rise in December. Prices for gasoline, jet fuels, liquefied petroleum gas, commercial natural gas, and home heating oil also moved down in January after increasing a month earlier. The index for natural gas to electric utilities decreased more than it had in December. Alternatively, prices for commercial electric power rose 0.4% in January compared with a 0.7% decline in the previous month. The industrial electric power index also turned up after a December decline.

Prices for materials for durable manufacturing moved down 0.6% in January following a 0.2% decrease in December. The index for cold rolled steel sheet and strip fell 0.4 % after advancing 3.6% in the prior month. Prices for hot rolled steel sheet and strip and for prepared paint also turned down in January. The index for copper and brass mill shapes declined more than it had in December. By contrast, prices for semifinished steel mill products edged up 0.2% compared with a 6.5% decrease in the previous month. The index for softwood lumber also turned up in January. Prices for hot rolled steel bars, plates, and structural shapes and for thermoplastic resins declined less than they had a month earlier, while the index for aluminum mill shapes rose more than it had in December.

Prices for materials for nondurable manufacturing inched down 0.1% in January following a 0.5% decrease in the prior month. The index for plastic resins and materials moved down 0.4% subsequent to a 2.7% drop a month earlier. Prices for finished fabrics also declined less than they had in December. The indexes for medicinal and botanical chemicals, synthetic rubber, and paint materials turned up in January after decreasing in the previous month. Woodpulp prices rose more than they had in the prior month. By contrast, the industrial chemicals index decreased 1.1% after advancing 0.8% in December. Prices for inedible fats and oils and for paper also turned down in January.

The index for materials and components for construction edged up 0.2% in January following a 0.1% decline in the preceding month. Prices for softwood lumber turned up 5.7% after decreasing 0.5% in December. The indexes for asphalt felts and coatings and for concrete products advanced more than they had in the previous month. Prices for air conditioning and refrigeration equipment increased in January after no change a month earlier, while the index for gypsum products fell less than it had in December. Alternatively, prices for nonferrous wire and cable moved down 4.6% following a 2.6% decrease in the prior month. The index for plastic construction products also declined more than it had in December, and prices for mineral wool for structural insulation turned down in January.

The increase in the index for intermediate foods and feeds accelerated to 1.9% in January from 1.5% a month earlier. Prices for confectionery materials rose 12.5% compared with a 0.1% decline in December. Similarly, the indexes for beef and veal, pork, and for refined sugar and byproducts also turned up in January after falling a month earlier. Prices for fluid milk products advanced more than they had in the prior month. By contrast, the prepared animal feeds index moved up 1.2% in January following a 4.0% gain in the previous month. Prices for processed young chickens and for shortening and cooking oils also increased less than they had in December.

Crude goods

The Producer Price Index for Crude Materials for Further Processing declined 6.3% in January following a 2.8% advance in December. This downturn is attributable to prices for crude energy materials, which fell after rising in the previous month. Alternatively, the crude foodstuffs and feedstuffs index increased in January following no change in the preceding month, and prices for basic industrial materials rose more than they had a month earlier.

The crude energy materials index decreased 16.2% subsequent to a 5.6% advance in December. Prices for natural gas dropped 22.4% following a 6.8% increase in the prior month. Crude petroleum prices turned down 9.2% after rising 5.0% a month earlier. The index for coal declined 2.4 % in January after edging up 0.4% in December.

Prices for crude foodstuffs and feedstuffs increased 2.1% following no change in the preceding month. Slaughter cattle prices rose 3.5% after inching down 0.2% in December. The indexes for slaughter broilers and fryers and for slaughter turkeys also turned up in January after decreasing a month earlier. The indexes for fluid milk and unprocessed finfish advanced more than they had in the prior month. Alternatively, prices for fresh fruits and melons fell 13.4% following a 26.3% jump in December. The index for fresh vegetables (except potatoes) also turned down after increasing in the previous month. The indexes for corn and wheat declined more in January than they had a month earlier.

The basic industrial materials index moved up 1.6% following a 0.5% gain in the previous month. Price increases for iron and steel scrap accelerated to 11.8% in January from 3.8% in December. The indexes for wastepaper; construction sand, gravel, and crushed stone; and phosphates also advanced more than they had a month earlier. Iron ore prices fell less in January than in the prior month. Alternatively, aluminum base scrap prices fell 4.6% following a 1.5% rise in the prior month. The indexes for gold ores and for softwood logs, bolts, and timber also turned down after increasing in December. Copper base scrap prices decreased more in January than they had a month earlier.