Washington, DC…The Producer Price Index for final demand increased 1.1 percent in June, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This rise followed advances of 0.9 percent in May and 0.4 percent in April. (See table A.) On an unadjusted basis, final demand prices moved up 11.3 percent for the 12 months ended in June, the largest increase since a record 11.6-percent jump in March 2022. In June, three-fourths of the advance in the index for final demand was due to a 2.4-percent rise in prices for final demand goods. The index for final demand services increased 0.4 percent.

Prices for final demand less foods, energy, and trade services moved up 0.3 percent in June after
advancing 0.4 percent in both May and April. For the 12 months ended in June, the index for
final demand less foods, energy, and trade services rose 6.4 percent.

Final Demand

Final demand goods: The index for final demand goods moved up 2.4 percent in June, the sixth
consecutive rise. Nearly 90 percent of the June increase can be traced to a 10.0-percent jump in
prices for final demand energy. The indexes for final demand goods less foods and energy and for
final demand foods advanced 0.5 percent and 0.1 percent, respectively.

Product detail: Over half of the June increase in the index for final demand goods is attributable to
gasoline prices, which jumped 18.5 percent. The indexes for diesel fuel, electric power, residential
natural gas, motor vehicles and equipment, and processed young chickens also moved higher. In
contrast, prices for chicken eggs dropped 30.2 percent. The indexes for iron and steel scrap and for
jet fuel also decreased. (See table 2.)

Final demand services: The index for final demand services rose 0.4 percent in June after climbing
0.6 percent in May. Two-thirds of the broad-based advance in June can be traced to a 0.8-percent
increase in margins for final demand trade services. (Trade indexes measure changes in margins
received by wholesalers and retailers.) Prices for final demand services less trade, transportation, and
warehousing and for final demand transportation and warehousing services also moved higher, 0.1
percent and 0.8 percent, respectively.

Product detail: Over 30 percent of the June advance in the index for final demand services can be
traced to margins for food and alcohol retailing, which rose 3.8 percent. The indexes for machinery
and equipment wholesaling, outpatient care (partial), transportation of passengers (partial),
guestroom rental, and hospital inpatient care also increased. Conversely, prices for portfolio
management declined 2.7 percent. The indexes for automobile retailing (partial) and for long-
distance motor carrying also moved lower.

Intermediate Demand by Commodity Type

Within intermediate demand in June, prices for processed goods advanced 2.3 percent, the index for 
unprocessed goods increased 9.5 percent, and prices for services were unchanged. (See tables B and 
C.)

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand moved up 2.3 percent in June, the sixth consecutive advance. Most of the broad-based 
increase in June can be traced to a 9.9-percent rise in prices for processed energy goods. The indexes 
for processed materials less foods and energy and for processed foods and feeds also moved higher, 
both advancing 0.2 percent in June. For the 12 months ended in June, prices for processed goods for 
intermediate demand jumped 22.2 percent.

Product detail: Forty percent of the June increase in the index for processed goods for intermediate 
demand can be attributed to a 13.9-percent rise in prices for diesel fuel. The indexes for gasoline, 
utility natural gas, commercial electric power, lubricating oil base stocks, and plastic resins and 
materials also advanced. In contrast, prices for softwood lumber dropped 22.6 percent. The indexes 
for jet fuel and for fresh sausage also moved lower.

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate 
demand climbed 9.5 percent in June, the sixth consecutive advance. Leading the June increase, prices 
for unprocessed energy materials rose 20.4 percent. The index for unprocessed foodstuffs and 
feedstuffs advanced 0.2 percent. Conversely, prices for unprocessed nonfood materials less energy 
fell 2.2 percent. For the 12 months ended in June, the index for unprocessed goods for intermediate 
demand surged 58.0 percent, the largest increase since a 59.2-percent jump for the 12 months ended 
April 2021. 

Product detail: Nearly 60 percent of the June increase in prices for unprocessed goods for 
intermediate demand can be traced to the index for natural gas, which jumped 24.3 percent. Prices for 
crude petroleum; corn; slaughter cattle; oilseeds; and construction sand, gravel, and crushed stone 
also rose. In contrast, the index for iron and steel scrap fell 10.4 percent. Prices for ungraded chicken 
eggs and for nonferrous scrap also decreased. 

Services for intermediate demand: The index for services for intermediate demand was unchanged 
in June, following seven consecutive advances. In June, a 0.2-percent increase in margins for trade 
services for intermediate demand offset decreases in the indexes for services less trade, 
transportation, and warehousing for intermediate demand and for transportation and warehousing 
services for intermediate demand, which fell 0.1 and 0.2 percent respectively. For the 12 months 
ended in June, prices for services for intermediate demand rose 6.3 percent. 

Product detail: Within the index for services for intermediate demand in June, margins for 
machinery and equipment parts and supplies wholesaling moved up 2.1 percent. Prices for loan 
services (partial); transportation of passengers (partial); gross rents for retail properties; and 
warehousing, storage, and related services also increased. In contrast, the index for securities 
brokerage, dealing, investment advice, and related services fell 4.4 percent. The indexes for portfolio 
management; television advertising time sales; arrangement of freight and cargo transportation; and 
metals, minerals, and ores wholesaling also declined.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: The index for stage 4 intermediate demand moved up 0.6 percent in 
June following a 0.8-percent increase in May. In June, prices for total goods inputs to stage 4 
intermediate demand advanced 1.3 percent, while the index for total services inputs was unchanged. 
(See table D.) Increases in the indexes for gasoline, machinery and equipment parts and supplies 
wholesaling, commercial electric power, diesel fuel, utility natural gas, and loan services (partial) 
outweighed declining prices for securities brokerage, dealing, investment advice, and related 
services; portfolio management; and softwood lumber. For the 12 months ended in June, the index 
for stage 4 intermediate demand rose 10.8 percent.

Stage 3 intermediate demand: The index for stage 3 intermediate demand advanced 0.9 percent in 
June after moving up 1.6 percent in May. In June, prices for total goods inputs to stage 3 intermediate 
demand rose 1.9 percent. Conversely, the index for total services inputs fell 0.3 percent. Increasing 
prices for diesel fuel, gasoline, slaughter cattle, corn, raw milk, and loan services (partial) 
outweighed decreasing indexes for television advertising time sales, ungraded chicken eggs, and cold 
rolled steel sheet and strip. For the 12 months ended in June, prices for stage 3 intermediate demand 
advanced 18.1 percent.

Stage 2 intermediate demand: The index for stage 2 intermediate demand rose 5.4 percent in June, 
the largest increase since moving up 5.5 percent in February 2021. In June, prices for total goods 
inputs to stage 2 intermediate demand jumped 9.9 percent, and the index for total services inputs 
increased 0.3 percent. Advances in the indexes for gas fuels, crude petroleum, loan services (partial), 
oilseeds, coal, and machinery and equipment parts and supplies wholesaling outweighed declines in 
prices for iron and steel scrap, arrangement of freight and cargo transportation, and softwood lumber. 
For the 12 months ended in June, the index for stage 2 intermediate demand jumped 29.4 percent, the 
largest increase since 12-month data were first calculated in November 2010.

Stage 1 intermediate demand: The index for stage 1 intermediate demand advanced 1.4 percent in 
June after increasing 1.3 percent in May. In June, prices for total goods inputs to stage 1 intermediate 
demand rose 2.8 percent. In contrast, the index for total services inputs fell 0.3 percent. Higher prices 
for diesel fuel, utility natural gas, gasoline, commercial electric power, guestroom rental, and 
transportation of passengers (partial) outweighed declines in the indexes for securities brokerage, 
dealing, investment advice, and related services; iron and steel scrap, and cold rolled steel sheet and 
strip. For the 12 months ended in June, prices for stage 1 intermediate demand jumped 15.8 percent.

________________
The Producer Price Index for July 2022 is scheduled to be released on Thursday, August 11, 2022, 
at 8:30 a.m. (ET).


                                                   *****

                                    Resampling of Industries - June 2022

Effective with the release of data for June 2022, the Producer Price Index (PPI) includes data for 
9 resampled industries and 1 newly introduced industry classified according to the 2017 North 
American Industry Classification System (NAICS). The Bureau of Labor Statistics periodically 
updates the sample of producers providing data for the PPI to reflect current conditions more 
accurately when the structure, membership, technology, or product mix of an industry shifts. The 
first results of this systematic process were published in July 1986. Subsequent efforts have been 
completed at regular intervals.  

For information on index additions, deletions, and recodes effective June 2022, see the current 
issue of the PPI Detailed Report online at www.bls.gov/ppi/detailed-report/ppi-detailed-report-
june-2022.pdf, or contact the PPI Section of Index Analysis and Public Information at ppi-
info@bls.gov or (202) 691-7705.

NAICS
Code                    Industry
236224        New health care building construction
311351        Chocolate and confectionery manufacturing from cacao
313110        Fiber, yarn, and thread mills
321219        Reconstituted wood product manufacturing
325413        In-vitro diagnostic substance manufacturing
327110        Pottery, ceramics, and plumbing fixture manufacturing
334412        Bare printed circuit board manufacturing
486210        Pipeline transportation of natural gas*
511210        Software publishers
517311        Wired telecommunications carriers

*  For further discussion of this newly introduced PPI, see the June 2022 issue of the PPI 
Detailed Report.

                                                   *****


        PPI Introduces Detailed Indexes for Defense and Non-defense Government Purchases

Effective with the release of Producer Price Index (PPI) data for June 2022, the Bureau of Labor 
Statistics introduced two PPI special grouping indexes to the Final Demand portion of the Final 
Demand-Intermediate Demand (FD-ID) aggregation system. Under the Government Purchases 
section of Final demand, PPI is introducing sub-indexes that reflect changes in prices for 
defense-related and non-defense-related government purchases. Historical data for the new 
indexes will go back to 2015. The official index codes and titles for the new indexes are provided 
below.

*  FD49405 - Government purchases, defense 
*  FD49406 - Government purchases, non-defense 

These indexes, constructed at the request of the U.S. Department of Defense, are calculated using 
weight data from the Bureau of Economic Analysis (BEA) Input/Output (I/O) Accounts. The 
BEA I/O data provide detailed commodity use information for the Government purchases sector. 
Allocations based on the detailed I/O data are being applied to the weights of the existing PPI 
Government purchases index to calculate detailed weights for the new sub-indexes.

Data for the two new indexes appear under the Special Groupings heading of the Final Demand 
section of tables 1 and 3 of this release, and in tables 1, 3, 4, and 5 of the PPI Detailed Report. 

For further information, contact the PPI Section of Index Analysis and Public Information at ppi-
info@bls.gov or (202) 691-7705.