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


The Producer Price Index for Finished Goods rose 1.0 percent in January, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This increase followed a decline of 0.3 percent in December and a 2.6-percent advance in November. At the earlier stages of processing, prices for intermediate goods moved up 1.4 percent after falling 0.2 percent in the prior month, and the crude goods index increased 2.5 percent following a 1.1-percent advance in December.

The upturn in finished goods prices was led by the index for energy goods, which increased 1.5 percent in January after falling 3.0 percent in December. Prices for finished goods excluding foods and energy advanced 0.4 percent following a 0.2-percent rise in the preceding month. The index for finished consumer foods increased 1.7 percent after climbing 1.4 percent a month earlier.

Before seasonal adjustment, the Producer Price Index for Finished Goods increased 0.8 percent in January to 171.9 (1982 = 100). From January 2007 to January 2008, the index for finished goods moved up 7.4 percent. Over the same period, prices for finished energy goods climbed 22.6 percent, the index for finished consumer foods rose 8.3 percent, and prices for finished goods other than foods and energy advanced 2.3 percent. For the 12 months ended January 2008, the index for intermediate goods increased 8.8 percent, and prices for crude goods jumped 31.3 percent.

Finished goods

The index for finished energy goods turned up 1.5 percent in January after falling 3.0 percent a month earlier. The index for gasoline increased 2.9 percent following a 7.6-percent drop in the preceding month. Prices for home heating oil, liquefied petroleum gas, residential natural gas, diesel fuel, and kerosene also turned up after falling in December. The index for lubricating oils rose after no change in the prior month. By contrast, partially offsetting the upturn in finished energy goods prices, the index for residential electric power fell 1.2 percent after advancing 0.6 percent in the previous month.

The rise in the index for finished goods excluding foods and energy accelerated to 0.4 percent in January from 0.2 percent in December. The index for pharmaceutical preparations advanced 1.5 percent after increasing 0.4 percent in the prior month. Prices for light motor trucks and passenger cars turned up after falling in December. The index for book publishing increased after no change a month earlier. By contrast, the index for cosmetics and other toilet preparations turned down 1.7 percent in January after rising 1.1 percent in the preceding month. Prices for floor coverings also declined following December increases. The index for civilian aircraft advanced less than in the previous month, and prices for cigarettes were unchanged after increasing in December.

The index for finished consumer foods rose 1.7 percent in January after advancing 1.4 percent a month earlier. The rise in the index for bakery products accelerated to 2.7 percent from 0.1 percent in December. Prices for pasta products also rose more than in the prior month. The indexes for soft drinks, frozen specialties, and processed turkeys turned up after falling in December. Conversely, the index for fresh and dry vegetables turned down 1.0 percent in January after rising 13.4 percent in the previous month. Prices for dairy products also declined following December advances. The index for fresh fruits and melons increased less in January than in the preceding month.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components rose 1.4 percent in January following a 0.2-percent decrease in December. This upturn was broad based. Prices for intermediate energy goods and materials for durable manufacturing advanced in January after declining a month earlier, while the indexes for materials for nondurable manufacturing, materials and components for construction, and intermediate foods and feeds increased more than in December. Excluding foods and energy, prices for intermediate goods climbed 0.8 percent in January compared with no change in the prior month.

The index for intermediate energy goods jumped 2.8 percent in January after falling 1.6 percent in December. Diesel fuel prices rose 5.9 percent following a 0.8-percent decrease in December. Similarly, the indexes for gasoline, home heating oil, liquefied petroleum gas, and industrial natural gas also turned up in January. Prices for jet fuels moved up more than they had in December. The indexes for commercial electric power and natural gas to electric utilities declined less in January than a month earlier. By contrast, partially offsetting the upturn in intermediate energy goods prices, the commercial natural gas index moved down 1.9 percent after advancing 0.3 percent in December. Prices for industrial electric power fell more in January than in the preceding month.

The index for materials for nondurable manufacturing increased 2.2 percent in January after inching up 0.1 percent in December. Leading this acceleration, prices for primary basic organic chemicals jumped 3.2 percent in January following a 2.8-percent drop a month earlier. The index for plastic resins and materials also turned up after falling in December. Prices for basic inorganic chemicals, paper, fertilizer materials, synthetic rubber, and finished fabrics rose more in January than they had in the prior month. Conversely, the index for medicinal and botanical chemicals declined 2.5 percent compared with a 0.1-percent decrease in December. Prices for inedible fats and oils increased less in January than they had in the previous month.

The index for materials for durable manufacturing moved up 0.6 percent in January following a 1.0-percent decrease in December. Prices for primary nonferrous metals rose 1.1 percent after dropping 8.5 percent in the prior month. The indexes for nonferrous wire and cable, copper and brass mill shapes, and thermoplastic resins also turned up in January. Prices for hot rolled steel bars, plates, and structural shapes; semifinished steel mill products; and hot rolled steel sheet and strip advanced more than they had in December. By contrast, prices for cold rolled steel sheet and strip declined 2.2 percent following a 1.6-percent gain in December. The indexes for titanium mill shapes and secondary aluminum also turned down in January.

The index for materials and components for construction climbed 0.4 percent in January after inching up 0.1 percent in December. Prices for nonferrous wire and cable jumped 3.8 percent in January following a 3.3-percent drop a month earlier. The index for millwork also turned up after falling in December. Prices for paving mixtures and blocks, asphalt felts and coatings, and wiring devices rose more in January than they had in the previous month. Conversely, the index for fabricated structural metal products advanced 0.2 percent compared with a 0.5-percent increase in December. Prices for concrete products and for prefabricated wood buildings and components turned down in January. The softwood lumber index declined more than in the preceding month.

The index for intermediate foods and feeds moved up 3.3 percent in January following a 2.3-percent rise in December. Leading this acceleration, prices for prepared animal feeds increased 4.8 percent in January after advancing 1.7 percent a month earlier. The index for confectionery materials also climbed at a faster rate than it had in December. Prices for fluid milk products and pork turned up in January. The indexes for soft drink liquid beverage bases and snack chips rose following no change in December. By contrast, flour prices increased 3.3 percent in January after surging 12.2 percent in the prior month. The indexes for natural, processed, and imitation cheese and for refined sugar and byproducts turned down in January.

Crude goods

The Producer Price Index for Crude Materials for Further Processing increased 2.5 percent in January following a 1.1-percent rise in December. The index for crude energy materials turned up in January, and prices for crude nonfood materials less energy advanced more than they had a month earlier. By contrast, partially offsetting the acceleration in crude material prices, the index for crude foodstuffs and feedstuffs increased less than it had in December.

Prices for crude energy materials advanced 1.8 percent in January after declining 0.7 percent in the previous month. The crude petroleum index rose 2.7 percent subsequent to a 2.4-percent decrease a month earlier. Prices for coal advanced 3.9 percent following a 0.5-percent gain in December. By contrast, the index for natural gas increased 0.7 percent compared with a 0.9-percent increase in the preceding month.

Prices for crude nonfood materials less energy moved up 4.0 percent in January subsequent to a 0.2-percent increase in December. The iron and steel scrap index jumped 17.2 percent following a 5.3-percent rise in the previous month. Similarly, prices for gold ores and phosphates also advanced more than they had a month earlier. The indexes for wastepaper and for both copper and aluminum base scrap turned up in January. Prices for iron ore rose after no change in December. By contrast, the index for construction sand, gravel, and crushed stone declined 1.4 percent in January after advancing 0.8 percent in December. Prices for industrial sand increased less than they had in the prior month.

The index for crude foodstuffs and feedstuffs advanced 2.7 percent following a 4.6-percent rise a month earlier. Wheat prices increased 6.6 percent in January subsequent to a 22.6-percent surge in December. The index for fresh fruits and melons also advanced less than it had in December. Prices for slaughter cattle, fluid milk, slaughter hogs, and for fresh and dry vegetables turned down in January. Conversely, the index for slaughter broilers and fryers rose 10.0 percent following a 1.6-percent decline a month earlier. Corn prices increased more than they had in December.