Intermediate goods
The Producer Price Index for Intermediate Materials, Supplies, and Components advanced 0.9 percent in October, following a 0.1-percent gain in September. This acceleration was primarily due to prices for intermediate energy goods, which climbed in October after falling in the preceding month. By contrast, the indexes for materials for durable manufacturing and for materials and components for construction turned down, after rising in September. Prices for materials for nondurable manufacturing went up at a slower rate in October than they did a month earlier, while the index for intermediate foods and feeds decreased at a faster pace over the same period. Excluding foods and energy, price increases for intermediate goods slowed from a 0.7-percent rate in September to a 0.3-percent rate in October.The index for intermediate energy goods jumped 4.3 percent in October, following a 1.9-percent decline in September. Jet fuel prices increased 17.2 percent, after moving down at a 12.5-percent rate in the prior month. The indexes for diesel fuel, commercial natural gas, home heating oil, and liquefied petroleum gases also turned up in October, following decreases in the previous month. Gasoline prices climbed 17.3 percent, compared with a 0.7-percent gain in September, while prices for industrial natural gas fell at a slower pace than they did in the preceding month. On the other hand, the index for industrial electric power dropped 2.4 percent, after inching down at a 0.1-percent rate in September. Prices for natural gas to electric utilities also declined at a quicker pace in October, while the index for commercial electric power turned down, following a September rise.
The index for materials for durable manufacturing moved down at a 0.3-percent rate in October, compared with a 1.5-percent gain in September. Much of this downturn can be traced to prices for aluminum mill shapes, which fell 6.6 percent following a 6.4-percent rise in the prior month. The indexes for cold rolled steel sheet and strip, building paper and board, plywood, and hardwood lumber also decreased in October, after increasing a month earlier. Cement prices advanced at a slower rate than they did in September. By contrast, the index for primary nonferrous metals surged 7.6 percent, following a 0.7-percent decline in the previous month. Prices for copper and brass mill shapes also turned up in October, while the index for semifinished steel mill products rose at a faster pace than it did in September.
Price increases for materials for nondurable manufacturing slowed to a 0.9-percent rate in October, after advancing 1.7 percent in September. The index for primary basic organic chemicals rose 0.2 percent, compared with a 4.1-percent increase in the preceding month. Prices for plastic resins and materials, paper, synthetic rubber, and phosphates also moved up less than they did in September. The index for inedible fats and oils fell more in October than it did in the prior month, while paperboard prices turned down, after climbing in September. Conversely, the index for intermediate basic organic chemicals increased 6.3 percent, following a 1.2-percent decline in the previous month. Prices for gray fabrics, paint materials, and finished fabrics also turned up in October. The nitrogenates index increased more than it did in September.
