Printing Prices Up Less Than 2% Amid '99, '00

Overall producer price inflation in the printing/publishing industry (i.e. average prices charged for the output of the industry) came in at a moderate 2.9% last year, after averaging 3.4% a year over the past decade. Higher paper prices, energy prices, and labor costs were partially absorbed and passed on by printers and publishers last year. Inflation should ease a bit during 2001 as energy prices stabilize and overall U.S. demand eases.

Prices charged by companies in the newspaper industry (including newsstand prices and charges for classifieds) rose by 3.4% between 1999 and 2000, about the same as over the prior three years but well below the 4.5% annual average inflation rate recorded during the past decade. Periodical/magazine publishing output prices were up 2.8% last year, the same as in 1999. Book industry average prices also rose by 2.8% during 2000, while average greeting card prices increased only 2.0% last year.

Prices in the commercial printing subsector of the industry rose, on average, less than in the other subsectors. For example, within lithographic commercial printing, over-the-year price increases averaged just 1.8% during 2000. Increasing at rates well above the average were prices for preprinted newspaper inserts (5.1%), display advertising (3.8%), and label/wrapper printing (3.2%).