PRICES AND SPENDING

U.S. BUREAU OF LABOR STATISTICS

FEBRUARY 2013 • VOLUME 2/ NUMBER 4

U.S. BUREAU OF LABOR STATISTICS | FEBRUARY 2013 1 www.bls.gov

Gold prices during and after the Great Recession

Author: Brian Hergt, Producer Price Index Program

Gold, a highly valuable precious metal, has many 

practical uses that span multiple industries. Historically, 

one of the primary uses of gold has been to make 

ornamental objects, such as jewelry. Malleability is one of gold’s 

special properties, allowing it to be hammered into sheets, drawn 

into wires, and cast into different shapes.

In addition to jewelry, gold is used to manufacture many products 

that we use in our everyday lives, especially electronics. This is 

because gold is an efficient conductor of electricity, and electronic 

components made with gold tend to be very reliable. Televisions, 

cell phones, calculators, Global Positioning System (GPS) devices, 

and computers are examples of products produced with small 

amounts of gold. Gold is widely used in other areas, as well, such as 

the medical, aerospace, and glassmaking industries.

Related articles

Additional BLS articles and information related to 

producer and import/export prices are available 

online at the following links:

y “Measuring Price Change for Base 

and Precious Metals and Diamonds in 

the U.S. Import/Export Price Indexes,” 

http://www.bls.gov/mxp/diamondfact.pdf

y “Producer prices reverse course in 2008,” 

http://www.bls.gov/opub/mlr/2009/07/

art2full.pdf

y “Producer Price Highlights, 2009,” 

http://www.bls.gov/ppi/ppidr201005.pdf
U.S. BUREAU OF LABOR STATISTICS | FEBRUARY 2013 2 www.bls.gov

BEYOND THENUMBERS PRICES AND SPENDING

Beyond its artistic and utilitarian uses, gold is used as a 

vehicle for monetary exchange through the issuance of gold 

coins and bars. (The former gold standard was established 

as a monetary system in which the standard economic 

unit of account was a fixed weight of gold.) Even though 

the United States transitioned to a system of fiat money 

(deriving its value from regulation) in the early 1970s, many 

investors continue to use gold as an investment to hedge 

against inflation, currency weakness, and other economic 

disruptions. Federal Reserve Chairman Ben Bernanke is 

of the opinion that gold prices are influenced by many 

factors. In 2011 he said, “Well, I pay attention to the price of 

gold, but I think it reflects a lot of things. It reflects global 

uncertainties. The reason people hold gold is as a protection 

against what we call tail risk, really, really bad outcomes. And 

to the extent that the last few years have made people more 

worried about the potential of a major crisis, then they have 

gold as a protection.”1

Price movements

Between 2008 and 2012, the value of gold increased 

dramatically, as is evidenced by the 101.1-percent surge 

in the Producer Price Index (PPI) for gold.

2

 As Chairman 

Bernanke stated, gold prices can act as an indicator of 

the health of the economy. A rise in the price of gold may 

be a signal that the economy is struggling. As a result, in 

times of either a crisis or inflation, many investors turn 

to gold to protect their principal. By contrast, in times of 

economic stability, investors are more likely to turn to 

more speculative investments, such as stocks, bonds, and 

real estate. During these times, the price for gold often 

declines. (See chart 1.)

After rising 2.6 percent in 2008, the PPI for gold increased 

12.8 percent in 2009, as the United States was mired in 

the economic and financial crises of the Great Recession, 

and the U.S. Federal Reserve ramped up its initial effort 

of quantitative (or monetary) easing.3 The extraordinary 

moves by the U.S. Federal Reserve to inject liquidity into 

the economy helped lower the value of the dollar, often 

seen as one of the main alternatives to gold.4 As a result of 

the economic contraction and monetary easing, investors, 

searching for a vehicle that would maintain their total 

assets’ value, poured money into gold, further enhancing 

its value in the weak economic environment.5

From September 2010 to September 2011, gold prices 

jumped 50.6 percent, due to speculation surrounding an 

uneven recovery and volatility in the U.S. financial markets, 

2.6

12.8

27.4

32.8

5.4

0

5

10

15

20

25

30

35

2008 2009 2010 2011 2012

Percent change

Source:U.S. Bureau of Labor Statistics.

Average annual percent change in the Producer Price Index (PPI) for gold ores, not seasonally adjusted, 

2008–2012

Chart 1

Source: U.S. Bureau of Labor Statistics.
U.S. BUREAU OF LABOR STATISTICS | FEBRUARY 2013 3 www.bls.gov

BEYOND THENUMBERS PRICES AND SPENDING

4.7

6.0

7.8

3.0

1.3

2.3

-1.3

2.0

-3

0

3

6

9

Overall Food Energy Core

Percent change 2011 2012

Source:U.S. Bureau of Labor Statistics.

Twelve-month percent change in the Producer Price Index (PPI) for overall, food, energy, and core finished 

goods, 2011 and 2012

with gold reaching an all-time high of $1,917.90 an ounce 

in late August of 2011.6, 7

In 2012, price increases for gold slowed, rising less than 

they had in each of the previous 4 years. The 5.4-percent 

increase in 2012 was the smallest yearly gain since the 

2.6-percent advance in 2008. Some of the contributing 

factors to the modest price increases in 2012 were the 

ongoing debt troubles, monetary easing by the U.S. Federal 

Reserve, lower interest rates, and a weaker U.S. dollar.

Price trends: producer inflation 

slows in 2012, led by a downturn in 

energy prices 

The Producer Price Index for finished goods advanced 1.3 

percent in 2012, following a 4.7-percent rise in 2011.8 This 

slower rate of increase was led by prices for finished energy 

goods, which fell 1.3 percent in 2012, after climbing 7.8 

percent a year earlier.9 Also contributing to the softening 

in inflation pressure, prices for finished consumer foods

and finished goods less foods and energy moved up 

less than they had in 2011. (See chart 2.) At the earlier 

stages of processing, the index for intermediate materials, 

supplies, and components inched up 0.3 percent in 2012, 

following a 5.7-percent jump in the preceding year. As 

was the case with finished goods, a downturn in prices for 

intermediate energy goods led the deceleration in prices 

for intermediate goods, while slower rates of advance in 

the indexes for intermediate goods other than foods and 

energy and intermediate foods and feeds also were factors 

in this price shift. The index for crude materials for further 

processing moved up 1.6 percent in 2012, compared with 

a 6.6-percent increase a year earlier. Prices for both crude 

energy materials and core crude goods turned down after 

rising in 2011, while the index for crude foodstuffs and 

feedstuffs advanced less than in 2011.10

Economic background

Within the energy goods sector, a major reversal in crude 

petroleum prices resulted in a similar turnaround in prices 

for refined petroleum products. After surging 16.2 percent 

in 2011, the crude petroleum index fell 11.3 percent in 2012, 

while the index for refined petroleum products decreased 

1.4 percent, after climbing 16.9 percent a year earlier. At the 

close of 2012, crude petroleum inputs to refineries averaged 

15.41 million barrels per day, 5.2 percent higher than at the 

end of 2011. Capacity utilization at refineries rose to 90.6 

percent from 84.8 percent at the end of the previous year. 

Net imports of crude petroleum declined in 2012, averaging 

7.96 million barrels per day for the 4 weeks ended December 

Chart 2

Source: U.S. Bureau of Labor Statistics.
U.S. BUREAU OF LABOR STATISTICS | FEBRUARY 2013 4 www.bls.gov

BEYOND THENUMBERS PRICES AND SPENDING

28, 2012, compared with 8.44 million barrels per day for the 

4 weeks ended December 30, 2011—a 5.7-percent drop. 

Conversely, domestic crude petroleum production averaged 

6.92 million barrels over the final 4 weeks of 2012—18.2 

percent more than for the similar period a year earlier. In 2012, 

crude oils stocks remained well above their 5-year historical 

average, after spending a major portion of 2011 in decline 

relative to their historical average.11 In contrast, wellhead 

natural gas prices moved up 8.0 percent in 2012, following 

an 18.3-percent drop in the preceding year. Total natural gas 

consumption is estimated to have risen about 4.9 percent 

in 2012, led by a significant jump in demand for natural gas 

for electric power generation.12 After decades of primacy for 

coal over other fuel sources for electric power generation, 

the preference for natural gas as a generator for electricity 

nearly equaled that of coal. Meeting this increase in demand, 

total natural gas production increased significantly in recent 

years. From 2007 to 2011, marketed production of natural gas 

climbed 19.0 percent, and 2012 production is estimated to 

be another 6.2-percent above its 2011 level. The amount of 

natural gas in underground storage remains at the top of its 

5-year average, which has been the case for well over a year.

Within the food sector, smaller advances in prices for meats

and dairy products were major contributors to the slowing 

rate of producer inflation at the finished and intermediate 

goods stages of processing, while similar price movements 

for slaughter livestock and raw milk were major factors in the 

deceleration in crude goods inflation. Continued drought 

has resulted in poor grazing conditions and a severe spike in 

grain and feed prices. In response to these higher input costs 

to livestock production, slaughter cattle shipments for meat 

production increased significantly in 2012. Commercial cattle 

slaughter in 2012 remained high, nearly matching the 2011 

rate, which was the highest since similar drought conditions 

drove up the rate in 1986. However, there remains concern 

in the cattle market that inadequate cattle supply moving 

forward might lead to a lower slaughter rate and a shortfall in 

beef production in 2013. In the slaughter hog market, a higher 

slaughter rate for meat production has been roughly equaled 

by improved supply through ample breeding inventory and 

rising litter rates.13 For raw milk, production moved up 3.7 

percent from 2009 to 2011, and is projected to have increased 

again in 2012.14 Dairy cattle inventory edged up from 2009 

to 2012, while milk production per cow climbed about 5 

percent over this period. However, higher grain and feed prices 

continue to apply input price pressure to the milk market.

Inflation for industrial goods other than food and energy 

also slowed in 2012. The index for core crude goods turned 

down in 2012, led by prices for iron and steel scrap, raw 

cotton (both of which decreased following large gains in 

2011), and gold ores, which moved up at a much slower 

rate, compared with a year earlier. In terms of processed 

goods for business demand, sharp reversals in prices for 

steel mill products and industrial chemicals helped slow 

the overall rate of advance in the intermediate core index, 

following a strong runup in prices a year earlier. At the 

finished goods stage of processing, the smaller rise in the 

finished core index was broad based, as price increases 

slowed for products ranging from passenger cars and 

civilian aircraft to consumer plastics and apparel and 

related products.

15 Slower growth in U.S. Gross Domestic 

Product (GDP) likely contributed to the slowing rate of 

inflation for core goods. Although the U.S. economy grew 

at a 3.1-percent rate in the third quarter of 2012, GDP 

faltered during the first two quarters and the final quarter 

of the year, moving up at annualized rates of 2.0 percent 

in the first quarter, 1.3 percent in the second quarter, and 

declining 0.1 percent in the fourth quarter.16

Finished goods

About 60 percent of the slower rate of increase in finished 

goods prices in 2012 can be traced to the index for finished 

energy goods, which fell 1.3 percent, after climbing 7.8 

percent in 2011. Gasoline prices edged down 0.6 percent 

in 2012, after surging 13.1 percent in the prior year. Prices 

for liquefied petroleum gas, home heating oil, and finished 

lubricants also declined, following advances in 2011. The 

indexes for residential electric power and diesel fuel moved 

up less than they had a year earlier. In contrast, prices for 

residential natural gas decreased 1.8 percent in 2012, after 

falling at a 3.8-percent rate in the preceding year.

The index for finished consumer foods increased 2.3 percent 

in 2012, after climbing 6.0 percent in 2011. Over one-third 

of this slower rate of advance can be traced to meat prices, 
U.S. BUREAU OF LABOR STATISTICS | FEBRUARY 2013 5 www.bls.gov

BEYOND THENUMBERS PRICES AND SPENDING

5.7

8.2

10.8

3.8

0.3

7.1

-3.2

0.7

-5

0

5

10

15

Overall Food Energy Core

Percent change 2011 2012

Source:U.S. Bureau of Labor Statistics.

Twelve-month percent change in the Producer Price Index (PPI) for overall, food, energy, and core 

intermediate goods, 2011 and 2012

which moved up 2.5 percent, following an 11.8-percent surge 

a year earlier. Prices for dairy products and for processed 

fruits and vegetables also rose less than in the previous year. 

The index for fresh and dry vegetables fell at a faster rate 

than in 2011. In contrast, prices for fresh fruits and melons

moved up 7.9 percent in 2012, following a 13.2-percent 

drop in the preceding year. The index for processed young 

chickens increased more than it had in 2011.

The index for finished goods less foods and energy rose 2.0 

percent in 2012, following a 3.0-percent increase in 2011. 

Leading the slower rate of advance, passenger car prices 

inched up 0.3 percent, after climbing 2.5 percent a year 

earlier. Prices for apparel and other fabricated textile products, 

consumer plastic products, civilian aircraft, and platinum and 

gold jewelry also moved up less than they had the prior year. 

In contrast, the index for pharmaceutical preparations rose 6.2 

percent in 2012, compared with a 4.2-percent advance in 2011.

Intermediate goods

The Producer Price Index for intermediate goods rose 0.3 

percent in 2012, following a 5.7-percent advance in 2011. 

(See chart 3.) Prices for intermediate energy materials led 

this deceleration, declining in 2012, compared with an 

increase in the prior year. Slower rates of advance in the 

indexes for intermediate materials less foods and energy

and for intermediate foods and feeds also contributed to 

the slowing rise in prices for intermediate goods.

Prices for intermediate energy materials declined 3.2 percent 

in 2012, subsequent to a 10.8-percent gain a year earlier. A 

major factor in this downturn was the jet fuel index, which 

fell 5.4 percent, after climbing 21.5 percent in 2011. Prices for 

gasoline, lubricating oil base stocks, asphalt, and liquefied 

petroleum gas also turned down in 2012. The diesel fuel

index rose less than it had a year earlier. By contrast, the rate 

of decline for prices for natural gas to electric power slowed 

to 2.1 percent from 6.3 percent in 2011.

The index for intermediate materials less foods and 

energy edged up 0.7 percent in 2012, after a 3.8-percent 

advance a year earlier. In 2012, higher prices for plastic 

resins and materials, softwood lumber, general purpose 

machinery and equipment, paints and allied products, and 

pharmaceutical preparations slightly outweighed lower 

prices for steel mill products, ethanol, basic inorganic 

chemicals, fertilizer materials, and synthetic rubber.

Prices for intermediate foods and feeds moved up 7.1 

percent in 2012, following an 8.2-percent advance in 2011. 

The increase in the meats index slowed to 2.5 percent in 

2012 from 11.8 percent in the previous year. Similarly, prices 

Chart 3

Source: U.S. Bureau of Labor Statistics.
U.S. BUREAU OF LABOR STATISTICS | FEBRUARY 2013 6 www.bls.gov

BEYOND THENUMBERS PRICES AND SPENDING

for natural, processed, and imitation cheese rose less than 

they had in 2011. The indexes for fats and oils and for refined 

sugar products turned down in 2012. In contrast, prices for 

prepared animal feeds surged 20.0 percent, compared with 

a 5.0-percent increase a year earlier. The index for processed 

young chickens increased more than it had in 2011.

Crude goods

The PPI for crude materials for further processing increased 

1.6 in 2012, compared with a 6.6-percent climb in 2011. 

Contributing to the lower rate of advance, the indexes 

for crude energy materials and crude nonfood materials 

less energy declined in 2012, after rising in the previous 

year. The index for crude foodstuffs and feedstuffs also 

was a factor in the deceleration in crude materials prices, 

advancing less than in 2011. (See chart 4.)

The index for crude energy materials turned down 4.1 percent, 

following a 3.4-percent rise in 2011. In 2012, crude petroleum

prices declined 11.3 percent, after jumping 16.2 percent a year 

earlier. The index for coal increased less than it had in 2011. In 

contrast, prices for natural gas turned up 8.0 percent in 2012, 

subsequent to dropping 18.3 percent in the previous year.

In 2012, the index for crude nonfood materials less energy

decreased 1.4 percent, compared with a 2.4-percent 

advance in 2011. Prices for iron and steel scrap led this 

downturn, falling 15.5 percent, following an 8.7-percent 

rise a year earlier. The index for raw cotton also turned 

down in 2012, and prices for gold ores increased less than 

in 2011. In contrast, the index for nonferrous scrap moved 

up 6.4 percent in 2012, after falling 4.7 percent a year 

earlier. Prices for wastepaper also turned up in 2012, and 

the index for grains advanced more than it had in 2011.

Prices for crude foodstuffs and feedstuffs increased 10.6 

percent in 2012, subsequent to a 12.1-percent rise in the 

previous year. The index for slaughter livestock was the 

main factor in this slower rate of advance, moving up 

1.7 percent, after a 20.5-percent jump in 2011. Prices for 

raw milk and alfalfa hay also rose less in 2012. In contrast, 

oilseeds prices surged 29.1 percent in 2012, following an 

8.5-percent drop a year earlier. The indexes for grains and 

slaughter chickens increased more than they had in 2011.

Trade industries

In 2012, the increase in the Producer Price Index for 

the net output of total trade industries accelerated to 

4.0 percent from 3.0 percent in 2011. (Trade indexes 

measure changes in margins received by wholesalers and 

retailers.) Leading this faster rate of advance, the margin 

index for merchant wholesalers of nondurable goods

Chart 4

Source: U.S. Bureau of Labor Statistics.

6.6

12.1

3.4 2.4

1.6

10.6

-4.1

-1.4

-7

0

7

14

Overall Food Energy Core

Percent change 2011 2012

Source:U.S. Bureau of Labor Statistics.

Twelve-month percent change in the Producer Price Index (PPI) for overall, food, energy, and core crude 

goods, 2011 and 2012
U.S. BUREAU OF LABOR STATISTICS | FEBRUARY 2013 7 www.bls.gov

BEYOND THENUMBERS PRICES AND SPENDING

climbed 4.7 percent, after rising 1.3 percent in the prior 

year. Margins received by discount department stores and 

merchant wholesalers of durable goods also rose more 

than in 2011. The margin index for warehouse clubs and 

supercenters turned up, after declining in the previous 

year. In contrast, margins received by electronic shopping 

and mail order houses decreased at a faster rate, falling 

7.3 percent, subsequent to a 2.2-percent decrease in 

2011. The index for new car dealers rose less in 2012 than 

in the preceding year.

Transportation and warehousing industries

The advance in the Producer Price Index for the net output 

of transportation and warehousing industries slowed to 

2.6 percent, from 6.1 percent in 2011. Prices received by 

the air transportation industry group led this deceleration, 

edging up at the slower rate of 0.9 percent, compared 

with a 9.5-percent rise a year earlier. The industry indexes 

for truck transportation, couriers and express delivery 

services, and rail transportation also advanced less than 

they had in 2011. In contrast, the index for deep sea 

freight transportation rose 4.1 percent, subsequent to a 

5.3-percent decline in 2011. Prices received by the industry 

for pipeline transportation of crude oil also turned up, after 

decreasing in the prior year.

Traditional service industries

In 2012, the rise in the Producer Price Index for the net 

output of total traditional service industries slowed to 1.3 

percent from 2.0 percent in 2011. A major factor in this 

slower rate of increase was the index for insurance carriers 

and related activities, which rose 1.6 percent in 2012, 

following a 3.2-percent advance a year earlier. Prices received 

by general medical and surgical hospitals also advanced less 

than they had in 2011. The indexes for the depository credit 

intermediation industry group and for non-casino hotels and 

motels turned down, after rising in the preceding year. In 

contrast, the index for portfolio management jumped 21.0 

percent in 2012, compared with a 0.7-percent rise in the prior 

year. Prices received by the passenger car rental industry 

turned up, after declining in 2011. 

This BEYOND THE NUMBERS article was prepared by 

Brian Hergt, Joseph Kowal, Antonio Lombardozzi, and Lana 

Borgie, economists in the Producer Price Index Program. 

Email: ppi-info@bls.gov Telephone: 202-691-7705.

Information in this article will be made available to 

sensory-impaired individuals upon request. Voice phone: 

(202) 691-5200. Federal Relay Service: 1-800-877-8339. 

This article is in the public domain and may be reproduced 

without permission.

Suggested citation:

Brian Hergt, “Gold prices during and after the Great 

Recession,” and Lana Borgie, Brian Hergt, Joseph Kowal, 

and Antonio Lombardozzi, “Price trends: producer 

inflation slows in 2012, led by a downturn in energy 

prices,” Beyond the Numbers: Prices and Spending, vol. 

2, no. 4 (U.S. Bureau of Labor Statistics, February 2013), 

http://www.bls.gov/btn/volume2/gold-prices-duringand-after-the-Great-Recession.htm.

Upcoming articles

y Average food prices: a snapshot of how much has 

changed over a century

y Expenditures of urban and rural households in 2011

y Employment and wage changes caused by oil 

production in the Bakken Formation, 2007–2011

Visit our online archives to access past publications at

http://www.bls.gov/opub/btn/archive/home.htm.

1. “Heavy Metals. Hard Currencies.” The Gold & Silver Speculator, June 13, 2012, http://www.danielstrading.com/advice/dt/goldsilver-speculator/archives/The-Gold-and-Silver-Speculator_2012-06-13.pdf

2. Price movements described in this section reflect annual average comparisons for 2008 through 2012.

Notes
BEYOND THENUMBERS PRICES AND SPENDING

U.S. BUREAU OF LABOR STATISTICS | FEBRUARY 2013 8 www.bls.gov

3. “QE3 And The Economy: It Will Help, But Not Solve All Problems,” Forbes, September 13, 2012, http://www.forbes.com/sites/

billconerly/2012/09/13/qe3-and-the-economy-it-will-help-but-not-solve-all-problems/

4. “Gold Falls After Bernanke, China Rate Cut,” Marketwatch, June 7, 2012, http://articles.marketwatch.com/2012-06-07/

markets/32080912_1_gold-futures-frederic-panizzutti-silver-futures

5. “Gold Prices Hit $1,000 Milestone,” CNN Money, March 13, 2008, http://money.cnn.com/2008/03/13/markets/gold/index.htm

6. PPI data reflect prices as of Tuesday of the week of the 13th of each month. Therefore, a price change occurring in late August 

2011 would be reflected in September 2011 PPI data.

7. “Gold and Silver Prices Outlook for September 2011,” Trading Nrg, September 5, 2011, http://www.tradingnrg.com/gold-pricesforecast-silver-price-outlook-for-september-2011/. Also, Hibah Yousuf, “Gold tops $1,900, looking ‘a bit bubbly’” CNN Money, 

August 23, 2011, http://money.cnn.com/2011/08/22/markets/gold_prices/index.htm.

8. Price movements in this section reflect December to December calendar-year comparisons.

9. All PPI data are recalculated 4 months after original publication, to reflect late data received from survey respondents. Twelvemonth percent changes for December 2012 will be revised with the release of PPI data on May 15, 2013.

10. Within the PPI stage-of-processing structure, the indexes for goods other than foods and energy commonly are referred to as 

the core indexes.

11. Weekly Petroleum Status Report, DOE/EIA-0208(2012-104), U.S. Energy Information Administration, (U.S. Department of Energy, 

January 4, 2013), 

http://www.eia.gov/pub/oil_gas/petroleum/data_publications/weekly_petroleum_status_report/historical/

2013/2013_01_04/pdf/wpsrall.pdf. See page V for refinery input, capacity utilization, and net import data; see table 1 on page 

1 for domestic production data; see figure 1 on page 5 for data on crude oil stocks.

12. For data on marketed production and total consumption of natural gas, see Natural Gas Monthly December 2012, U.S. Energy 

Information Administration, (U.S. Department of Energy, January), http://www.eia.gov/naturalgas/monthly/archive/2012/

2012_12/pdf/ngm_all.pdf, p. 3. For information regarding natural gas demand from electric power generation link to Today in 

Energy, Electricity generation from coal and natural gas both increased with summer heat, Energy Information Administration, (U.S. 

Department of Energy, October 19, 2012), http://www.eia.gov/todayinenergy/detail.cfm?id=8450. For data on natural gas in 

underground storage go to Natural Gas Weekly Update, Energy Information Administration, (U.S. Department of Energy, January 

17, 2013), http://www.eia.gov/naturalgas/weekly/archive/.

13. Livestock, Dairy, and Poultry Outlook, January 2013, LDP-M-223, January 17, 2013, U. S. Department of Agriculture, Economic 

Research Service, pp. 1-8, http://www.ers.usda.gov/media/984422/ldpm223.pdf.

14. Ibid. p. 13. Also, Data Set: U.S. dairy situation at a glance (Monthly), at http://www.ers.usda.gov/data-products/

dairy-data.aspx.

15. More highly processed intermediate and finished goods commonly exhibit price movements that are somewhat different from 

price movements for less-processed goods, because basic material costs tend to be a smaller portion of total costs for producers 

of more highly processed goods than for manufacturers of less-processed goods. Contracts and escalation agreements also can 

delay or mitigate the pass-through effect of early-stage price volatility at successive stages of processing.

16. Gross Domestic Product: Fourth Quarter and Annual 2012 (Advance Estimate), BEA 13–02, Bureau of Economic Analysis, January 30, 

2013, at http://www.bea.gov/newsreleases/national/gdp/2013/pdf/gdp4q12_adv.pdf, p. 6.