January 2011 Consumer and Producer Price Indices

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The seasonally adjusted Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4 percent in January on a seasonally adjusted basis. Over the last 12 months, the all items index increased 1.6 percent.

Increases in indexes for energy commodities and for food accounted for over two-thirds of the all-items increase. The indexes for gasoline and fuel oil both increased in January, continuing their recent strong upward trend. The index for food at home posted its largest increase in over two years with all six major grocery store food group indexes rising.

The index for all items less food and energy also rose in January. The indexes for apparel, shelter, airline fares, and recreation all posted increases. In contrast, the indexes for new vehicles and for used cars and trucks declined in January. Over the last 12 months, the food index has risen 1.8 percent with the food at home index up 2.1 percent; both 12-month changes are the highest since 2009. The energy index has increased 7.3 percent over the last 12 months, with the gasoline index up 13.4 percent. The index for all items less food and energy has risen 1.0 percent.

The seasonally adjusted Producer Price Index for Finished Goods (PPI) rose 0.8 percent in January. This advance followed increases of 0.9 percent in December and 0.7 percent in November and marks the seventh straight rise in finished goods prices. At the earlier stages of processing, prices received by manufacturers of intermediate goods moved up 1.1 percent, and the crude goods index rose 3.3 percent. On an unadjusted basis, prices for finished goods advanced 3.6 percent for the 12 months ended January 2011.
 

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Details at different stages of processing include:

Finished goods -- Leading the broad-based increase in the index for finished goods were higher prices for finished energy goods, which rose 1.8 percent. The indexes for both finished goods less foods and energy and for finished consumer foods also contributed to this increase, moving up 0.5 percent and 0.3 percent, respectively.

Intermediate goods -- This index rose 1.1 percent, the sixth straight monthly increase. Accounting for nearly two-thirds of the broad-based January advance, prices for intermediate goods other than foods and energy climbed 1.0 percent. The indexes for intermediate energy goods and for intermediate foods and feeds also contributed to this rise, moving up 1.8 percent and 0.4 percent, respectively. For the 12 months ended January 2011, prices for intermediate goods increased 6.0 percent, the smallest advance since rising 5.4 percent in September 2010.

Crude goods -- The crude-goods index increased 3.3 percent. For the 3-month period ended in January, crude material prices climbed 11.5 percent after moving up 8.8 percent from July to October. In January, about half of the broad-based monthly advance is attributable to a 4.3-percent rise in prices for crude foodstuffs and feedstuffs. Also contributing to this increase, the index for crude nonfood materials less energy moved up 4.0 percent and prices for crude energy materials rose 1.9 percent.
 

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In the case of forest products sector, the indices we track all moved higher in January. Except for pulpwood, prices are all higher than year-earlier levels although the rate of growth has slowed in several cases.
 

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