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 1.0% in March, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This advance followed a 1.3% rise in February and a 0.6% decrease in January. The index for finished goods excluding foods and energy was unchanged in March after moving up 0.4% in February. At the earlier stages of processing, prices received by producers of intermediate goods increased 1.0% in March following a 1.1% advance a month earlier, and the crude goods index rose 3.2% after climbing 8.9% in February.

Among finished goods, the index for consumer goods less foods and energy edged up 0.1% in March following a 0.5% increase in the preceding month, while capital equipment prices moved down 0.1% after advancing 0.3% in February. The consumer foods index rose less in March than it had a month earlier1.4% and 1.9%, respectively. By contrast, slightly counteracting the deceleration in finished goods prices, the index for energy goods increased 3.6% in March compared with a rise of 3.5% in February.

During the first quarter of 2007, the finished goods index climbed at a 6.9% seasonally adjusted annual rate (SAAR), after moving up at a 3.5% SAAR during the fourth quarter of 2006. This faster rate of increase can be traced primarily to prices for finished consumer foods, which advanced at an 18.7% SAAR for the 3 months ended March 2007 after rising at a 3.6-% SAAR for the 3 months ended December 2006. The index for finished energy goods increased at a 9.4% SAAR during the first quarter of 2007 after moving up at a 6.6% SAAR during the fourth quarter of 2006.

Prices for finished goods less foods and energy advanced at a 2.3% SAAR for the 3 months ended in March, the same as for the 3 months ended in December. At the earlier stages of processing,the intermediate goods index increased at a 5.9% SAAR during the first quarter of 2007 after inching up at a 0.7% SAAR during the fourth quarter of 2006, and prices for crude goods jumped at a 23.5% SAAR for the 3 months ended in March after climbing at a 29.0% SAAR for the 3 months ended in December.

Before seasonal adjustment, the Producer Price Index for Finished Goods rose 1.4% in March to 164.2 (1982 = 100). From March 2006 to March 2007, finished goods prices advanced 3.2%. Over the same period, the index for finished consumer foods increased 7.8%, prices for finished goods less foods and energy moved up 1.7%, and the index for finished energy goods rose 2.8%. For the 12 months ended in March, prices received by manufacturers of intermediate goods advanced 3.5%, and the crude goods index jumped 15.6%.

Finished goods

The capital equipment index inched down 0.1% in March after rising 0.3% in February. Most of this downturn can be attributed to prices for light motor trucks, which fell 1.2% in March following a 1.7% increase a month earlier. The indexes for commercial furniture and for ships also decreased after advancing in the preceding month. Prices for pumps, compressors, and related equipment rose less in March than in the prior month, while the index for electronic computers declined more than it had in February. Prices for communication and related equipment were unchanged following increases in the previous month.

By contrast, partially offsetting the downturn in capital equipment prices, the index for x-ray and electromedical equipment moved up 0.3% in March after falling 2.6% in February. Prices for passenger cars, railroad equipment, and for integrating and measuring instruments also turned up in March. The capital equipment index advanced at a 1.9% SAAR during the first quarter of 2007 after climbing at a 2.7% SAAR during the fourth quarter of 2006.

The index for finished consumer goods less foods and energy edged up 0.1% in March following a 0.5% rise in February. Cigarette prices were unchanged in March after climbing 4.6% a month earlier. The indexes for light motor trucks; toys, games, and children''s vehicles; household furniture; soaps and synthetic detergents; lawn and garden equipment (excluding garden tractors); and sanitary papers and health products turned down following gains in February. By contrast, the passenger cars index moved up 0.2% in March after falling 1.2% in the prior month.

Prices for newspaper circulation and home electronic equipment also increased following declines in February, while the pharmaceutical preparations index advanced at a slightly quicker rate in March than it had in the preceding month. During the first quarter of 2007, prices for finished consumer goods less foods and energy rose at a 3.1% SAAR after moving up at a 1.7% SAAR during the fourth quarter of 2006.

The index for finished consumer foods rose 1.4% in March following a 1.9% advance in the prior month. Prices for processed young chickens moved up 1.1% compared with a 3.8% jump in February. The indexes for fresh fruits and melons, pork, eggs for fresh use, and confectionery end products turned down in March after increasing a month earlier. Prices for bakery products and pasta products rose less than they had in February. By contrast, the index for fresh and dry vegetables surged 13.5% in March following an 8.3% advance in the preceding month. Prices for dairy products also increased more than they had in February. The indexes for soft drinks and processed turkeys climbed after falling in the prior month.

The finished energy goods index rose 3.6% in March after advancing 3.5% in February. In March, higher prices for gasoline, which jumped 8.7%, along with increasing prices for residential natural gas, liquefied petroleum gas, diesel fuel, and home heating oil outweighed declining prices for finished lubricants.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components rose 1.0 % in March, slightly less than the 1.1% increase in the prior month. In March, price advances for intermediate energy goods, materials for both nondurable and durable manufacturing, intermediate foods and feeds, and for materials and components for construction outweighed falling prices for components for manufacturing. Prices for intermediate materials less foods and energy moved up 0.2% for the second consecutive month.

The intermediate energy goods index rose 4.1% in March subsequent to a 4.5% advance in the previous month. Prices for natural gas to electric utilities increased 5.9% after climbing 12.2% in February. The indexes for both commercial and industrial electric power turned down following gains a month earlier. Prices for asphalt, home heating oil, and both commercial and industrial natural gas rose less than they had in the prior month. By contrast, partially offsetting the deceleration in intermediate energy goods prices, the jet fuels index jumped 12.4% in March after inching up 0.3% in the preceding month. Gasoline prices also increased more than they had in February. The intermediate energy goods index advanced at a 19.7% SAAR from December 2006 to March 2007 after rising at a 3.3% SAAR during the final quarter of 2006.

Subsequent to a 0.7% increase in February, prices for materials for nondurable manufacturing moved up 0.9% in March. The index for inedible fats and oils rose 2.4% following a 9.6% drop in February. Prices for plastic resins and materials, intermediate basic organic chemicals, paperboard, and paint materials also turned up in March.The fertilizer materials index advanced at a faster rate than it had in February. By contrast, the index for primary basic organic chemicals increased 0.5% after climbing 3.2% in February. Prices for finished fabrics also rose less in March, and the paper index decreased more than it had a month earlier. From December 2006 to March 2007, prices for materials for nondurable manufacturing increased at a 6.1% SAAR after moving down at a 4.5% SAAR in the prior quarter.

The index for materials for durable manufacturing advanced 1.1% in March following a 0.3% increase in February. Prices for copper and brass mill shapes rose 1.7% after declining 4.5% a month earlier. Prices for cement, building paper and board, and thermoplastic resins also turned up in March. The indexes for hot rolled steel bars, plates, and structural shapes; prepared paint; and hot rolled steel sheet and strip increased more than they had in February. Conversely, the titanium mill shapes index decreased 13.1% in March compared with a 0.3% advance in the preceding month. Prices for softwood lumber and aluminum mill shapes rose less than they had in February. The index for materials for durable manufacturing advanced at a 3.0% SAAR for the 3 months ended March 2007 after declining at a 2.3% SAAR in the preceding quarter.

Prices for intermediate foods and feeds moved up 1.7% in March following a 2.6% increase in the prior month. The prepared animal feeds index rose 1.8% after climbing 4.8 % in February. Prices for processed young chickens also advanced at slower rates in March than they had a month earlier. The indexes for pork and confectionery materials turned down after rising in the previous month. By contrast, prices for fluid milk products increased 2.4% subsequent to a 0.5% gain in February. The indexes for flour and for refrigerated, perishable prepared foods turned up after falling a month earlier. Prices for refined sugar and byproducts fell less in March than in the previous month. The index for intermediate foods and feeds climbed at a 27.5% SAAR in the first quarter of 2007 after rising at a 22.1% SAAR in the final quarter of 2006.

Prices for materials and components for construction increased 0.3 % in March after edging up 0.1 % in the prior month. The concrete products index advanced 0.8 % following a 0.3-% rise in February. Prices for fabricated structural metal products also increased more than they had in the preceding month. Prices for nonferrous wire and cable and for treated wood fell less in March than in the prior month. The indexes for architectural coatings and for asphalt felts and coatings turned up after falling in February. Alternatively, prices for plastic construction products declined 0.3 % in March following a 0.3- % advance a month earlier. The index for heating equipment also turned down after rising in February, while prices for plumbing fixtures and brass fittings increased less in March. The index for materials and components for construction advanced at a 2.1-% SAAR in the first quarter of 2007 after falling at a 2.1-% SAAR in the prior quarter.

The index for components for manufacturing declined 0.5% in March after increasing 0.1% for two consecutive months. In March, falling prices for electronic components and accessories, computer storage devices, carpets and rugs, and lamp bulbs and tubes outweighed rising prices for fabricated steel plate, heat exchangers and condensers, steam and hot water equipment, and parts for turbines and turbine generators. The index for components for manufacturing fell at a 1.5% SAAR from December 2006 to March 2007 after rising at a 0.3% SAAR during the final quarter of 2006.

Crude goods

The Producer Price Index for Crude Materials for Further Processing increased 3.2 % in March following an 8.9% rise in February. The indexes for crude energy materials and for crude foodstuffs and feedstuffs advanced less in March than they had a month earlier. By contrast, partially offsetting the deceleration in crude material prices, the index for basic industrial materials increased more than it had in the prior month.

Prices for crude energy materials advanced 1.7% in March after climbing 13.7% in the previous month. The natural gas index rose 3.8% subsequent to a 21.1% surge a month earlier. Prices for crude petroleum turned down 1.3% following a 6.4% gain in February. The index for coal edged down 0.1% compared with a 1.8% increase in the preceding month. During the first quarter of 2007, prices for crude energy materials decreased at an 11.6- % SAAR after rising at a 54.0% SAAR in the prior quarter.

The index for crude foodstuffs and feedstuffs advanced 2.4% following a 7.4% rise a month earlier. Price increases for slaughter broilers and fryers slowed from 8.7% in February to 7.1% in March. Wheat prices also rose less than they had in the prior month. The indexes for corn, slaughter hogs, soybeans, and for fresh fruits and melons turned down in March. By contrast, the index for slaughter cattle advanced 5.8% following a 3.4% rise a month earlier. Prices for fluid milk and for fresh vegetables (except potatoes) also increased more than they had in February. The index for crude foodstuffs and feedstuffs rose at a 59.3% SAAR in the first quarter of 2007 after increasing at a 22.9% SAAR in the last quarter of 2006.