§1The reading
The BLS wood pallet PPI (WPU084101) was 413.371 in October 2022, down 2.0% on the month and up 5.9% on the year.
Over three months the index moved −3.2%.
It was the lowest reading since February 2022.
Across the five years to October 2022, the index ranged from 246.4 (November 2017) to 444.2 (April 2022).
Lumber (WPU081) was −1.9% on the year, softwood +3.9% and hardwood −11.8%; lumber ran 7.7 points behind pallets over twelve months.
The industry-basis index for wood container and pallet manufacturing (PCU321920321920) was +6.0% on the year.
U.S. retail diesel averaged $5.211 a gallon over the month (EIA, 5 weekly readings), +44.3% on a year earlier.
These notes are generated from the published figures, not written by an analyst. The method is on the methodology page.
§2All eight series for October 2022
| Series | Base | Index | Month | Year |
|---|---|---|---|---|
| Wood pallets WPU084101 | 1982 = 100 | 413.371 | −2.0% | +5.9% |
| Pallets incl. wood/metal combination WPU0841 | 1982 = 100 | 413.371 | −2.0% | +5.9% |
| Wood container & pallet mfg (industry) PCU321920321920 | Dec 2003 = 100 | 217.505 | −2.9% | +6.0% |
| Pallets, industry basis PCU3219203219205 | Dec 2003 = 100 | 228.522 | −2.0% | +5.9% |
| Industry primary products PCU321920321920P | Dec 2003 = 100 | 210.602 | −3.0% | +4.5% |
| Lumber WPU081 | 1982 = 100 | 282.917 | −3.2% | −1.9% |
| Softwood lumber WPU0811 | 1982 = 100 | 302.976 | −2.0% | +3.9% |
| Hardwood lumber WPU0812 | 1982 = 100 | 265.546 | −5.5% | −11.8% |
p = preliminary. BLS revises the latest four months.
§3What it means for an index clause
A pallet bought at $10.00 twelve months earlier, escalated in full with this index, would be $10.59 in October 2022. Method: $10.00 × (index in October 2022 ÷ index twelve months before). Most clauses only move the price when the change passes a band, and some pass through only part of it.
Under the model clause's quarterly review, October 2022 is not a review month: the next review, on 1 January 2023, uses the November 2022 reading. A monthly-review contract would use this reading directly.
Run your own numbers with the escalator, or read the model escalator clause.
§4Freight context
U.S. retail on-highway diesel averaged $5.211 a gallon across 5 weekly EIA readings in October 2022 (+44.3% on a year earlier). Delivery charges and fuel surcharges are separate from the producer index, so price them as their own lines in the bid-leveling sheet.