Wholesale Inflation Rates Inched Up 0.4% in September for 8.5% Annual Rate

Washington, DC…The Producer Price Index for final demand increased 0.4 percent in September, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices declined 0.2 percent in August and 0.4 percent in July. (See table A.) On an unadjusted basis, the index for final demand advanced 8.5 percent for the 12 months ended in September.

In September, two-thirds of the increase in the index for final demand can be traced to a 0.4-
percent rise in prices for final demand services. The index for final demand goods also advanced
0.4 percent.

Prices for final demand less foods, energy, and trade services advanced 0.4 percent in September,
the largest rise since increasing 0.5 percent in May. For the 12 months ended in September, the
index for final demand less foods, energy, and trade services moved up 5.6 percent.

Final Demand

Final demand services: Prices for final demand services advanced 0.4 percent in September after
climbing 0.3 percent in August. Most of the September increase is attributable to a 0.6-percent rise in
the index for final demand services less trade, transportation, and warehousing. Margins for final
demand trade services edged up 0.1 percent. (Trade indexes measure changes in margins received by
wholesalers and retailers.) Conversely, prices for final demand transportation and warehousing
services fell 0.2 percent.

Product detail: Over a quarter of the September increase in the index for final demand services can
be traced to a 6.4-percent advance in prices for traveler accommodation services. The indexes for
food and alcohol retailing, portfolio management, machinery and vehicle wholesaling, oil and gas
well drilling services, and hospital inpatient care also rose. In contrast, prices for long-distance motor
carrying fell 0.4 percent. The indexes for fuels and lubricants retailing and for consumer loans
(partial) also decreased. (See table 2.)

Final demand goods: Prices for final demand goods moved up 0.4 percent in September after
decreasing 1.1 percent in August. Sixty percent of the advance is attributable to a 1.2-percent
increase in the index for final demand foods. Prices for final demand energy rose 0.7 percent. The
index for final demand goods less foods and energy was unchanged.

Product detail: A major factor in the September increase in prices for final demand goods was a
15.7-percent advance in the index for fresh and dry vegetables. Prices for diesel fuel, residential
natural gas, chicken eggs, home heating oil, and pork also moved higher. Conversely, the index for
gasoline fell 2.0 percent. Prices for prepared poultry and for steel mill products also declined.

Table A. Monthly and 12-month percent changes in selected final demand price indexes, seasonally adjusted
Month Total
final
demand
Final
demand
less
foods,
energy,
and
trade
Final demand goods Final demand services Change
in final
demand
from 12
months
ago
(unadj.)
Change
in final
demand
less
foods,
energy,
and
trade
from 12
mo. ago
(unadj.)
Total Foods Energy Less
foods
and
energy
Total Trade Transportation
and
warehousing
Other

2021

Sept.

0.5 0.3 1.2 2.1 2.5 0.6 0.1 0.0 -1.0 0.3 8.8 6.1

Oct.

0.7 0.4 1.3 -0.1 5.0 0.7 0.2 0.5 1.1 -0.1 8.9 6.2

Nov.

1.0 0.8 0.9 1.3 0.9 0.8 1.0 1.3 2.8 0.6 9.9 7.0

Dec.

0.6 0.4 -0.1 -0.2 -1.4 0.4 0.9 1.9 1.6 0.3 10.0 7.0

2022

Jan.

1.2 0.8 1.6 1.8 4.1 0.8 0.9 1.3 0.0 0.8 10.1 6.9

Feb.

1.1 0.2 2.2 1.9 7.2 0.8 0.5 1.7 2.0 -0.3 10.4 6.7

Mar.

1.7 1.0 2.4 2.4 6.6 1.1 1.3 2.3 5.6 0.4 11.7 7.1

Apr.

0.5 0.4 1.3 1.5 1.5 1.1 0.0 0.1 2.1 -0.2 11.2 6.8

May(1)

0.8 0.5 1.5 0.4 4.8 0.7 0.4 0.6 2.5 0.1 11.1 6.8

June(1)

1.0 0.3 2.2 -0.1 8.9 0.5 0.4 0.8 0.8 0.2 11.3 6.4

July(1)

-0.4 0.1 -1.8 1.3 -9.1 0.2 0.2 0.8 -0.7 0.0 9.8 5.8

Aug.(1)

-0.2 0.2 -1.1 -0.1 -5.6 0.2 0.3 0.5 -0.9 0.4 8.7 5.6

Sept.

0.4 0.4 0.4 1.2 0.7 0.0 0.4 0.1 -0.2 0.6 8.5 5.6

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for May 2022 through August 2022 have been revised to reflect the availability of late reports and corrections by respondents.

Intermediate Demand by Commodity Type

Within intermediate demand in September, prices for processed goods edged up 0.1 percent, the 
index for unprocessed goods rose 0.3 percent, and prices for services advanced 0.3 percent. (See 
tables B and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand rose 0.1 percent in September after decreasing 1.5 percent in August. The increase can be 
traced to a 2.6-percent advance in prices for processed energy goods. In contrast, the indexes for 
processed materials less foods and energy and for processed foods and feeds moved lower, 0.6 
percent and 0.5 percent, respectively. For the 12 months ended in September, prices for processed 
goods for intermediate demand increased 13.1 percent. 

Product detail: Leading the September rise in the index for processed goods for intermediate 
demand, prices for diesel fuel advanced 9.1 percent. The indexes for electric power, jet fuel, pork, 
and ready-mix concrete also increased. Conversely, prices for steel mill products fell 6.7 percent. The 
indexes for primary basic organic chemicals, liquefied petroleum gas, and prepared poultry also 
declined.

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate 
demand rose 0.3 percent in September following a 5.3-percent advance in August. Leading the 
broad-based increase in September, prices for unprocessed energy materials moved up 0.5 percent. 
The indexes for unprocessed nonfood materials less energy and for unprocessed foodstuffs and 
feedstuffs also rose, 0.6 percent and 0.1 percent, respectively. For the 12 months ended in September, 
prices for unprocessed goods for intermediate demand advanced 34.2 percent. 

Product detail: Leading the September rise in prices for unprocessed goods for intermediate demand, 
the index for natural gas increased 3.1 percent. Prices for corn; hay, hayseeds, and oilseeds; wheat; 
fresh vegetables, except potatoes; and construction sand, gravel, and crushed stone also moved 
higher. In contrast, the crude petroleum index fell 3.4 percent. Prices for raw milk and for recyclable 
paper also declined.

Table B. Monthly and 12-month percent changes in selected intermediate demand price indexes for goods by commodity type, seasonally adjusted
Month Processed goods for intermediate demand Unprocessed goods for intermediate demand
Total Foods
and
feeds
Energy
goods
Less
foods
and
energy
Total,
change
from 12
months
ago
(unadj.)
Total Foodstuffs
and
feedstuffs
Energy
materials
Nonfood
materials
less
energy
Total,
change
from 12
months
ago
(unadj.)

2021

Sept.

1.2 1.5 2.1 0.9 23.8 2.8 0.8 8.0 -1.8 48.5

Oct.

2.4 -0.4 6.7 1.6 25.7 6.0 -2.2 17.7 -1.5 55.5

Nov.

1.5 0.1 2.5 1.4 26.6 2.3 1.3 2.3 3.4 49.6

Dec.

-0.1 0.1 -2.7 0.6 24.4 -4.8 3.8 -12.1 -1.8 40.0

2022

Jan.

2.2 2.6 4.7 1.5 24.8 3.1 2.9 4.2 1.1 36.4

Feb.

1.5 2.1 5.8 0.4 23.3 9.8 5.4 18.2 1.5 33.5

Mar.

2.3 2.1 7.3 0.9 22.1 2.9 7.7 -4.3 9.7 43.3

Apr.

2.0 3.2 4.4 1.2 22.0 5.5 4.2 9.3 1.3 50.1

May(1)

2.3 1.1 4.5 1.8 21.6 5.4 0.2 14.6 -4.2 46.4

June(1)

2.0 0.0 8.8 0.0 21.9 4.7 -0.3 11.0 -2.0 50.1

July(1)

-2.2 0.2 -8.8 -0.2 17.3 -9.4 -1.7 -14.6 -7.2 32.1

Aug.(1)

-1.5 0.0 -4.6 -0.7 14.3 5.3 -1.3 12.1 0.7 37.4

Sept.

0.1 -0.5 2.6 -0.6 13.1 0.3 0.1 0.5 0.6 34.2

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for May 2022 through August 2022 have been revised to reflect the availability of late reports and corrections by respondents.

Services for intermediate demand: The index for services for intermediate demand increased 0.3 
percent in September, the third consecutive rise. Leading the September advance, prices for services 
less trade, transportation, and warehousing for intermediate demand climbed 0.5 percent. Margins for 
trade services for intermediate demand moved up 0.3 percent. Conversely, the index for 
transportation and warehousing services for intermediate demand declined 0.7 percent. For the 12 
months ended in September, prices for services for intermediate demand increased 6.2 percent.

Product detail: In September, a 5.6-percent rise in the index for investment banking was a major 
factor in the advance in prices for services for intermediate demand. The indexes for paper and 
plastics products wholesaling, gross rents for retail properties, portfolio management, traveler 
accommodation services, and pipeline transportation of natural gas also moved higher. In contrast, 
prices for arrangement of freight and cargo transportation fell 12.7 percent. The indexes for metals, 
minerals, and ores wholesaling and for securities brokerage, dealing, investment advice, and related 
services also decreased. 

Table C. Monthly and 12-month percent changes in selected intermediate demand price indexes for services by commodity type, seasonally adjusted
Month Services for intermediate demand
Total Trade Transportation
and
warehousing
Other Total, change
from 12 months
ago (unadj.)

2021

Sept.

0.3 -1.2 2.5 0.4 8.2

Oct.

0.0 0.6 0.5 -0.3 7.4

Nov.

0.6 -0.6 1.0 0.9 8.1

Dec.

0.8 1.5 1.6 0.5 8.3

2022

Jan.

0.8 1.4 0.6 0.6 7.9

Feb.

0.2 1.4 0.4 -0.2 7.8

Mar.

1.3 4.4 2.1 0.0 8.4

Apr.

0.9 1.0 1.7 0.6 8.0

May(1)

0.5 0.6 0.6 0.4 7.9

June(1)

-0.4 -0.8 0.1 -0.3 6.2

July(1)

0.3 -0.1 1.0 0.3 5.9

Aug.(1)

0.8 -0.6 -0.2 1.5 6.2

Sept.

0.3 0.3 -0.7 0.5 6.2

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for May 2022 through August 2022 have been revised to reflect the availability of late reports and corrections by respondents.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: Prices for stage 4 intermediate demand rose 0.3 percent in 
September following a 0.4-percent advance in August. In September, the index for total services 
inputs to stage 4 intermediate demand moved up 0.5 percent. Prices for total goods inputs were 
unchanged. (See table D.) Increases in the indexes for paper and plastics products wholesaling, corn, 
diesel fuel, portfolio management, gross rents for retail properties, and investment banking 
outweighed declines in the indexes for steel mill products; securities brokerage, dealing, investment 
advice, and related services; and metals, minerals, and ores wholesaling. For the 12 months ended in 
September, prices for stage 4 intermediate demand rose 8.4 percent.

Stage 3 intermediate demand: Prices for stage 3 intermediate demand inched down 0.1 percent in 
September, the third consecutive decline. In September, the index for total goods inputs to stage 3 
intermediate demand fell 0.2 percent. Prices for total services inputs were unchanged. Decreases in 
the indexes for steel mill products; raw milk; arrangement of freight and cargo transportation; 
slaughter hogs; and metals, minerals, and ores wholesaling outweighed increases in the indexes for 
diesel fuel, corn, paper and plastics products wholesaling, and jet fuel. For the 12 months ended in 
September, prices for stage 3 intermediate demand advanced 10.8 percent. 

Stage 2 intermediate demand: Prices for stage 2 intermediate demand edged down 0.1 percent in 
September following a 3.5-percent rise in August. In September, the index for total goods inputs to 
stage 2 intermediate demand declined 0.1 percent. Prices for total services inputs were unchanged. 
Decreases in the indexes for crude petroleum, arrangement of freight and cargo transportation, 
liquefied petroleum gas, fuels and lubricants retailing, and steel mill products outweighed increasing 
prices for natural gas, oilseeds, deposit services (partial), and traveler accommodation services. For 
the 12 months ended in September, the index for stage 2 intermediate demand jumped 18.6 percent.

Stage 1 intermediate demand: Prices for stage 1 intermediate demand rose 0.5 percent in 
September after falling 0.5 percent in August. In September, the index for total goods inputs to stage 
1 intermediate demand advanced 0.6 percent, and prices for total services inputs moved up 0.4 
percent. Increases in the indexes for diesel fuel, corn, traveler accommodation services, investment 
banking, paper and plastics products wholesaling, and gross rents for retail properties outweighed 
declines in the indexes for steel mill products; metals, minerals, and ores wholesaling; and securities 
brokerage, dealing, investment advice, and related services. For the 12 months ended in September, 
prices for stage 1 intermediate demand rose 10.8 percent.

Table D. Monthly percent changes in selected intermediate demand price indexes by production flow, seasonally adjusted
Month Stage 4 intermediate
demand
Stage 3 intermediate
demand
Stage 2 intermediate
demand
Stage 1 intermediate
demand
Total Goods
inputs
Services
inputs
Total Goods
inputs
Services
inputs
Total Goods
inputs
Services
inputs
Total Goods
inputs
Services
inputs

2021

Sept.

0.4 0.8 0.1 1.1 1.2 1.0 2.2 3.6 0.9 0.2 0.7 -0.3

Oct.

0.6 1.3 0.0 1.0 1.9 0.2 3.7 7.9 -0.1 1.1 2.5 -0.3

Nov.

1.1 1.5 0.7 0.8 1.2 0.4 1.2 1.7 0.7 1.3 2.0 0.5

Dec.

0.7 0.5 0.8 0.8 0.7 0.9 -2.2 -5.6 1.2 0.4 0.0 0.8

2022

Jan.

1.5 2.1 1.0 1.6 2.6 0.7 1.4 2.7 0.1 1.4 1.8 1.0

Feb.

0.6 1.2 0.0 1.4 2.6 0.1 4.3 8.4 0.3 1.0 1.6 0.2

Mar.

1.2 1.6 0.8 3.1 4.5 1.6 0.8 0.3 1.3 2.8 3.3 2.2

Apr.

1.0 1.2 0.7 2.5 3.7 1.3 2.8 4.7 0.7 1.7 2.4 0.9

May(1)

0.9 1.4 0.4 1.7 2.6 0.6 3.6 6.8 0.3 1.5 2.3 0.7

June(1)

0.3 1.1 -0.4 0.5 1.4 -0.5 2.9 5.4 0.0 1.0 2.4 -0.7

July(1)

-0.4 -0.9 0.0 -1.4 -2.9 0.4 -4.3 -8.6 1.0 -1.8 -3.0 -0.3

Aug.(1)

0.4 -0.1 0.9 -1.6 -3.2 0.2 3.5 5.4 1.5 -0.5 -1.5 0.7

Sept.

0.3 0.0 0.5 -0.1 -0.2 0.0 -0.1 -0.1 0.0 0.5 0.6 0.4

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for May 2022 through August 2022 have been revised to reflect the availability of late reports and corrections by respondents.

________________
The Producer Price Index for October 2022 is scheduled to be released on Tuesday, November 15, 2022, 
at 8:30 a.m. (ET).

                                                   *****

                      PPI Weights to be Updated to Reflect 2017 Census Shipment Values

With the release of January 2023 Producer Price Index (PPI) data in February 2023, the Bureau 
of Labor Statistics will update PPI value weights to more accurately reflect recent production and 
marketing patterns. The updated weights will be constructed using 2017 value of shipments data 
from the Census of Manufactures, the Census of Mining, the Census of Services, and the Census 
of Agriculture. These data were collected in accordance with the North American Product 
Classification System (NAPCS). From January 2018 through December 2022, PPI weights have 
been based on 2012 North American Industry Classification System (NAICS) shipment values.

All PPIs will be affected by this weight update, including all industry net output indexes, as well 
as indexes for traditional commodity groupings. In addition, weights will be updated from the 
2012 to the 2017 Economic Census for all Final Demand-Intermediate Demand (FD-ID) indexes, 
special commodity-grouping indexes, and inputs to industry indexes. This weight revision will 
not result in changes to the reference base for indexes, the dates when PPIs are set to 100.

It is important to note that the basic structures of the PPI commodity and FD-ID classification 
systems will not change as a result of the weight revision. However, PPIs classified according to 
the NAICS will be updated to reflect 2022 NAICS definitions established by the U.S. Census 
Bureau. The weight update also will result in shifting relative importance values. These shifts 
will impact aggregate indexes in a manner commensurate with the relative gains and losses in 
value weights from 2012 to 2017.

In addition, PPI sample updates normally occurring with the release of October 2022 and 
February 2023 data will be combined and released in conjunction with the release of January 
2023 PPI data in February 2023. 

Commodity and FD-ID relative importance figures for December 2022 will be released two 
business days prior to the release of January 2023 PPI data. This information will be available on 
the PPI website at www.bls.gov/ppi/tables/. Following the January 2023 PPI data release, a 
concordance between Census product codes and PPI commodity codes will be available upon 
request by contacting the PPI Section of Index Analysis and Public Information at ppi-
info@bls.gov or (202) 691-7705.