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http://stats.bls.gov/ppihome.htm   OCTOBER 15, 1999
                                     
                 Producer Price Indexes -- September 1999

     The Producer Price Index for Finished Goods increased 1.1 percent in
September, seasonally adjusted, the Bureau of Labor Statistics of the U.S.
Department of Labor reported today.  This increase followed a 0.5-percent
advance in August and a 0.2-percent gain in July and represents the largest
one-month increase since September 1990, when prices for finished goods
rose 1.3 percent.  Prices received by producers of intermediate goods
gained 0.3 percent, following a 0.8-percent increase in the prior month.
The crude goods index moved up 5.1 percent, after rising 4.6 percent in
August.  (See table A.)

Table A.  Monthly and annual percent changes in selected stage-of-
processing price indexes, seasonally adjusted

                     Finish                                  
                         ed
                      goods
                                                             
                                     Change in            
                            Except   finished    Inter-    
                                       goods
                             foods    from 12   mediate  Crude
                              and     months
Month  Total  Foods  Energy energy      ago      goods   goods
                                     (unadj.)
 1998                                                   
Sept.     0.2    0.2   -0.4     0.3        -0.9   -0.3   -1.8
 Oct.      .3     .4     .8      .1         -.7    -.2    2.5
 Nov.     -.2    -.4   -1.3      .1         -.6    -.2    -.1
 Dec.      .5      0   -1.8     1.0           0    -.7   -3.6
                                                        
 1999                                                   
 Jan.      .3    1.5     .8     -.2          .8      0     .6
 Feb.     -.5   -1.2   -1.1      .1          .5    -.3   -2.3
 Mar.      .3     .3    1.7     -.1          .8     .3     .3
 Apr.      .5    -.7    5.5      .1         1.2     .7    2.5
 May       .2    r.4    r.3      .1         1.4    r.3   r6.1
June      -.1     .4   r-.6    r-.1         1.5    r.2    r.1
July       .2    -.9    3.4       0         1.5     .6    -.2
 Aug.      .5     .4    3.7     -.1         2.3     .8    4.6
Sept.     1.1    1.0    2.2      .8         3.2     .3    5.1
r=revised.  Some of the figures shown above and elsewhere in this
release may differ from those previously reported because data 
for May 1999 have been revised to reflect the availability of late
reports and corrections by respondents.

                                    -2-

     Among finished goods, the index for finished goods other than foods
and energy advanced 0.8 percent, after posting a 0.1-percent decline a
month earlier.  This acceleration was primarily due to price increases for
cigarettes and passenger cars.  (Excluding these two commodities, the index
for finished goods less foods and energy would have increased 0.1 percent
in September.)  Prices for finished consumer foods rose 1.0 percent,
following a 0.4-percent gain in August.  By contrast, the index for
finished energy goods advanced 2.2 percent, after rising 3.7 percent last
month.

     During the third quarter of 1999, the PPI for finished goods moved up
at a 7.5-percent seasonally adjusted annual rate (SAAR), after increasing
at a 2.5-percent rate in the second quarter.  Prices for finished energy
goods rose at a 43.9-percent SAAR from June to September, following a 21.9-
percent rate of advance from March to June.  The index for finished goods
other than foods and energy moved up at a 2.8-percent SAAR during the third
quarter, after showing no change in the second quarter.  Finished consumer
foods prices advanced at a 2.1-percent SAAR from June to September,
following a 0.3-percent rate of increase from March to June.  During the
third quarter of 1999, the PPI for intermediate goods rose at a 7.0-percent
SAAR, after increasing at a 5.0-percent rate during the second quarter of
this year.  Prices for crude goods advanced at a 45.3-percent SAAR from
June to September, following a 40.5-percent rate of increase from March to
June.

Table B.  Monthly and annual percent changes in selected price indexes for
intermediate goods and crude goods, seasonally adjusted

              Interm                           Crude           
              ediate                           goods
              goods
                            Change in                             
                            intermedi                          
                               ate                               Change in
                     Exclud   goods                             crude goods
                      ing      from                   Excluding    from
                     foods  12 months                   foods    12 months
                      and      ago             Energy    and        ago
Month  Foods  Energy energy  (unadj.)   Foods (unadj.)  energy    (unadj.)
                                                
 1998                                                          
Sept.    -0.9   -0.5   -0.3       -2.5   -0.9   -3.6     -1.2      -15.1
 Oct.     -.4    1.0    -.3       -2.5    3.2    5.5     -3.0      -16.6
 Nov.      .8   -1.1    -.2       -2.9    -.6    2.0     -2.2      -18.4
 Dec.     -.6   -3.5    -.2       -3.3   -4.3   -4.0     -1.7      -16.7
                                                                     
 1999                                                                
 Jan.      .6     .8    -.2       -2.7    4.9   -5.0       .2      -11.4
 Feb.    -1.9    -.9    -.1       -2.7   -3.0   -3.6      1.2      -11.9
 Mar.    -1.4    2.2     .1       -2.1    -.7    2.9     -1.1      -10.5
 Apr.    -1.5    5.1     .2       -1.4   -2.9   12.6      -.9       -9.2
 May      r.3    r.5    r.3       -1.1   r2.5  r13.2     r2.1      r-3.1
June      r.5   r-.5    r.3        -.5    r.5   r-.5       .5        -.4
July     -1.4    2.9     .4         .1   -4.8    3.7      2.3        -.7
 Aug.     1.1    3.8     .2        1.2    3.8    7.2      1.8        8.3
Sept.     1.3    1.8     .1        1.9    1.3   10.4      2.2       16.1
r=revised.  Some of the figures shown above and elsewhere in this release
may differ from those previously reported because data for May 1999 have
been revised to reflect the availability of late reports and corrections
by respondents.

                                    -3-

     Before seasonal adjustment, the Producer Price Index for Finished
Goods gained 0.8 percent in September to stand at 134.8 (1982=100).  From
September 1998 to September 1999, the finished goods index advanced 3.2
percent.  Over the past 12 months, prices for finished  energy goods
increased 13.9 percent, the index for finished goods other than foods and
energy moved up 1.7 percent, and prices for finished consumer foods rose
1.2 percent.  Prices received by producers of intermediate goods increased
1.9 percent for the 12 months ended in September, and the index for crude
materials advanced 16.1 percent during the same period.


Finished goods

     The index for finished consumer goods other than foods and energy
advanced 1.1 percent in September, after posting a 0.1-percent decline in
August.  Cigarette prices moved up 9.5 percent, following a 0.1-percent
advance a month ago.  The passenger car index increased 2.0 percent in
September, after edging down 0.1-percent in the previous month.  Light
motor truck prices rose 0.8 percent, following a 0.4-percent decline in the
prior month.  Prices for sanitary papers and health products; wines,
brandy, and brandy spirits; and women's apparel also turned up, after
falling a month earlier.  On the other hand, the index for cosmetics and
other toilet preparations declined 0.4 percent in September, following a
0.1-percent gain in August.  Prices for passenger car radial tires showed
no change, after advancing last month.  The index for toys, games, and
childen's vehicles fell, after showing no change in the prior month.
Prices for finished consumer goods other than foods and energy rose at a
4.3-percent SAAR for the three months ended in September, following a 0.3-
percent rate of increase in the previous quarter.

     The finished consumer foods index increased 1.0 percent in September,
after registering a 0.4-percent gain in August.  Prices for fresh and dry
vegetables advanced 8.4 percent, following a 5.3-percent drop a month
earlier.  The indexes for fresh fruits and melons, processed young
chickens, beef and veal, and for finfish and shellfish also turned up,
after falling in the previous month.  Prices for dairy products and pork
rose more than a month ago.  By contrast, the index for eggs for fresh use
declined 12.8 percent in September, following a 2.8-percent gain in August.
Prices for soft drinks showed no change, after posting an increase the last
month.  The roasted coffee index fell more than in the prior month.

     The index for capital equipment advanced 0.2 percent in September,
after showing no change in August.  Prices for light motor trucks increased
0.8 percent, following a 0.4-percent decrease a month earlier.  Heavy motor
truck prices also turned up, after falling last month.  The index for
electronic computers fell less than a month ago, while prices for civilian
aircraft and for construction machinery and equipment rose more than in the
previous month.  The truck trailers index rose, after showing no change in
August.  Conversely, prices for communication and related equipment
declined 0.3 percent, after showing no change in the prior month.  The
index for x-ray and electromedical equipment fell more than in August.
Capital equipment prices rose at a 0.3-percent SAAR from June to September,
after showing no change from March to June.

     Prices for finished energy goods increased 2.2 percent in September,
following a 3.7-percent rise in August.  The gasoline index advanced 2.2
percent, after registering a 9.1-percent gain a month earlier.  Residential
electric power prices also rose less than a month ago.  By contrast, the
residential natural gas index moved up 2.5 percent, following 1.1-percent
increase in the previous month.  Prices for liquefied petroleum gas and
home heating oil rose more than last month.  The finished lubricants index
fell less than in August.

                                    -4-

Intermediate goods

     The Producer Price Index for Intermediate Materials, Supplies, and
Components increased 0.3 percent in September, seasonally adjusted,
following a 0.8-percent advance in August.  Prices for intermediate energy
goods rose less than in August.  The index for durable manufacturing
materials turned down, following an increase a month ago.  Prices for
materials and components for construction fell more than in the previous
month.  The index for materials for nondurable manufacturing rose less than
last month.  Conversely, prices for intermediate foods and feeds increased
more than in August.  Prices for intermediate materials other than foods
and energy posted a 0.1-percent increase, following a 0.2-percent rise in
the prior month.  (See table B.)

     The index for intermediate energy materials increased 1.8 percent in
September, following a 3.8-percent rise in August.  Prices for commercial
electric power increased 0.1 percent, following a 2.2-percent gain in the
previous month.  The indexes for gasoline and jet fuels rose less than last
month.  Industrial electric power prices showed no change, after advancing
in August.  The diesel fuel index turned down, following an increase last
month.  By contrast, prices for residual fuels jumped 20.5 percent, after a
7.5-percent advance in the prior month.  The indexes for commercial natural
gas and industrial natural gas rose more than in the previous month.
Prices for intermediate energy materials advanced at a 40.0-percent SAAR
from June 1999 to September 1999, after rising at a 22.1-percent rate in
the previous quarter.

     The index for durable manufacturing materials declined 0.4 percent in
September, following a 0.2-percent rise in August.  Prices for steel mill
products turned down 0.4 percent, following a 0.2-percent rise in the prior
month.  The index for plywood fell more than a month ago.  Prices for
aluminum mill shapes and for building paper and board turned down, after
rising in the previous month.  The index for flat glass showed no change,
following a 0.2-percent increase last month.  On the other hand, prices for
copper and brass mill shapes moved up 1.9 percent in September, after
rising 0.4 percent in August.  The indexes for hardwood lumber, zinc, and
platinum rose more than in the previous month.  Durable manufacturing
material prices rose at a 2.6-percent SAAR from June 1999 to September
1999, after advancing at a 6.3-percent rate during the second quarter.
     
     Prices for materials and components for construction fell 0.5 percent
in September, after declining 0.1 percent in August.  The index for plywood
fell 11.4 percent, after registering a 2.7-percent decrease a month ago.
Prices for gypsum products and non-fluid power metal valves turned down,
following last month's increases.  The indexes for cement and heating
equipment rose less than in the previous month.  By contrast, prices for
softwood lumber fell 4.2 percent in September, after dropping 6.0 percent
in August.  The plastic construction products index rose more than in the
previous month.  Prices for fabricated ferrous wire products and for
plumbing fixtures and brass fittings turned up, after falling in the prior
month.  This index for materials and components for construction increased
at a 0.8-percent SAAR for the third quarter of 1999, following a 4.1-
percent rate of increase during the second quarter.
     
     The index for nondurable manufacturing materials increased 0.4 percent
in September, following a 0.6-percent gain in August.  Prices for
paperboard fell 2.2 percent, following a 3.6-percent advance in the prior
month.  The indexes for paint materials and phosphates also turned down,
after rising in the previous month.  Prices for plastic resins and
materials rose less than the month before.  By contrast, the paper index
rose 0.4 percent in September, following a 0.4-percent decline in August.
Prices for gray fabrics, inedible fats and oils, and nitrogenates also
turned up, after falling a month ago.  The index for industrial chemicals
increased faster than in the previous month.  Nondurable manufacturing
material prices rose at a 5.6-percent SAAR during the third quarter of
1999, after increasing at a 5.7-percent rate during the second quarter.

                                    -5-
     
     Prices for intermediate foods and feeds moved up 1.3 percent in
September, after rising 1.1 percent in August.  The index for fluid milk
products rose 3.6 percent, after falling 0.2 percent last month.  Prices
for confectionery materials and for beef and veal also turned up, following
a decline a month ago.  The indexes for pork and for dry, condensed, and
evaporated milk products rose more than in the prior month.  On the other
hand, prices for crude vegetable oils increased 0.4 percent in September,
following a 9.5-percent advance in August.  The index for flour turned
down, after rising a month ago.  Prices for natural, processed, and
imitation cheese and for prepared animal feeds rose less than in the
previous month.  The intermediate foods and feeds index advanced at a 4.0-
percent SAAR during the third quarter of 1999, following a 2.8-percent rate
of decline in the previous quarter.
     
Crude Goods

     The Producer Price Index for Crude Materials for Further Processing
rose 5.1 percent in September, seasonally adjusted, following a 4.6-percent
rise in August.  Prices for crude energy materials and basic industrial
materials increased more than in the previous month.  By contrast, price
increases slowed for crude foodstuffs and feedstuffs.  (See table B.)
     
     The index for crude energy materials rose 10.4 percent in September,
following a 7.2-percent increase in August.  September's acceleration was
led by the crude petroleum index, which advanced 14.3 percent, after rising
6.5 percent in the prior month.  In addition, prices for natural gas rose
13.3 percent, after advancing 10.6 percent in August.  By contrast, the
index for coal fell 3.8 percent, following a 0.2-percent decline a month
earlier.  Prices for crude energy materials increased at a 126.6-percent
seasonally adjusted annual rate from June 1999 to September 1999, following
158.3-percent rate of advance in the second quarter.

     The basic industrial materials index rose 2.2 percent, following a 1.8-
percent rise in August.  Prices for leaf tobacco rose 9.1 percent, after
increasing 0.9 percent in August.  The aluminum base scrap index also rose
more than last month.  Indexes for wastepaper and copper base scrap moved
up, following declines in the prior month.  By contrast, price increases
slowed from August to September for iron and steel scrap and cattle hides.
The indexes for raw cotton and softwood logs turned down, after rising a
month earlier.  Basic industrial material prices increased at a 28.1-
percent seasonally adjusted annual rate in the third quarter of 1999,
following a 7.3-percent annual rate of advance in the second quarter of
1999.
     
     The index for crude foodstuffs and feedstuffs advanced 1.3 percent,
following a 3.8-percent increase in August.  Corn prices turned down 5.0
percent, after advancing 25.7 percent a month ago.  Slaughter hog prices
also fell, following an increase in August.  The indexes for soybeans,
fluid milk, wheat, and fresh vegetables (except potatoes) rose less than a
month ago.  Prices for alfalfa hay and Louisiana rough rice fell more than
in the prior month.  On the other hand, prices for slaughter broilers and
fryers turned up 8.2 percent, after falling 12.6 percent in August.  The
index for Irish potatoes for processing more than doubled in September from
a sharp decline in the prior month.  Prices for fresh fruits and melons,
slaughter turkeys, and unprocessed shellfish also increased, after
declining last month.  Prices for raw cane sugar fell less than in previous
month.  The crude foodstuffs and feedstuffs index moved up at a 0.4-percent
SAAR from June 1999 to September 1999, after showing no change in the
second quarter of 1999.

                                    -6-
     
     
Net output price indexes for mining, manufacturing, and other industries

Mining.  The Producer Price Index for the net output of total domestic
mining industries rose 9.1 percent in September, after registering a 6.3-
percent advance in August.  (Net output price indexes are not seasonally
adjusted.)  Prices received by the crude petroleum, natural gas, and
natural gas liquids industry rose 14.0 percent, following a 9.6-percent
increase a month ago.  The industry indexes for oil and gas well drilling,
crushed and broken limestone, and for dimension stone rose, after falling
in the prior month.  By contrast, the industry index for bituminous coal
and lignite mining fell 2.5 percent, following a 0.2-percent decline in the
previous month.  Price increases in the copper ores and gold ores mining
industries rose less than a month ago.  The index for the potash, soda, and
borate minerals industry fell more than in the prior month.  In September,
the Producer Price Index for the net output of total domestic mining
industries stood at 90.9 (December 1984=100), 38.4 percent above its year-
ago level.  During the third quarter of 1999, this index increased at a
102.5-percent annual rate, following a 108.7-percent rate of increase in
the second quarter.

Manufacturing.  The Producer Price Index for the net output of total
domestic manufacturing industries increased 0.5 percent in September, after
posting a 0.6-percent rise in August.  Increases in the industry indexes
for petroleum refining and related products, tobacco manufactures, food and
kindred products, chemicals and allied products, and paper and allied
products outweighed declining industry indexes for lumber and wood products
(except furniture), transportation equipment, machinery (except
electrical), measuring and controlling instruments, electromedical
equipment, and primary metals.  In September, the Producer Price Index for
the net output of total domestic manufacturing industries stood at 129.7
(December 1984=100), 3.0 percent above its year-ago level.  From June 1999
to September 1999, this index rose at a 6.1-percent annual rate, after
increasing at a 4.8-percent rate in the previous quarter.

Other.  Among other industries in September, the industry indexes for
operators and lessors of nonresidential buildings, deep sea foreign
transportation of freight, telephone communications (except
radiotelephone), life insurance carriers, radio broadcasting, and scheduled
air transportation registered increases.  By contrast, the industry indexes
for real estate agents and managers, hotels and motels, wireless
communications, marine cargo handling, travel agencies, passenger car
rental, cable and other pay televisions services, and home health care
services declined in September.

                                   *****
            Producer Price Index data for October 1999 will be
      released on Wednesday, November 10, 1999 at 8:30 a.m. (E.S.T.)
                                   *****
Information in this news release will be made available to sensory impaired
 individuals upon request.  Voice phone: 202-606-7828; TDD phone: 202-606-
             5897; TDD Message Referral phone: 1-800-326-2577.
Table 1.  Producer price indexes and percent changes by stage of processing
(1982=100)
 _______________________________________________________________________________________________________________________________
                                                  |          |                       |Unadjusted     |
                                                  |          |                       |  percent      |Seasonally adjusted
                                                  | Relative |    Unadjusted index   |change to      |percent change from:
                     Grouping                     |importance|                       |Sept.1999 from:|
                                                  |          |_______________________|_______________|__________________________
                                                  |   Dec.   |       |       |       |       |       |       |         |
                                                  |          | May   |Aug.   |Sept.  |  Sept.| Aug.  |June to|July  to |Aug.  to
                                                  |   1998 1/|1999 2/|1999 2/|1999 2/|  1998 | 1999  |  July |   Aug.  |  Sept.
 _________________________________________________|__________|_______|_______|_______|_______|_______|_______|_________|________
                                                  |
 Finished goods...................................|  100.000   132.4   133.7   134.8     3.2    0.8      0.2      0.5     1.1
   Finished consumer goods........................|   74.783   131.2   133.1   134.6     4.3    1.1       .3       .7     1.3
     Finished consumer foods......................|   23.285   134.5   135.7   137.0     1.2    1.0      -.9       .4     1.0
       Crude......................................|    1.701   126.5   123.1   126.6     -.4    2.8     -4.8      -.3     1.2
       Processed..................................|   21.584   135.2   136.7   137.8     1.3     .8      -.6       .4     1.0
     Finished consumer goods, excluding foods.....|   51.498   129.6   131.8   133.4     5.6    1.2       .9       .8     1.4
       Nondurable goods less foods................|   35.202   126.6   130.3   132.8     8.1    1.9      1.3      1.3     1.7
       Durable goods..............................|   16.296   132.8   131.5   131.1      .1    -.3      -.1      -.1      .6
   Capital equipment..............................|   25.217   137.6   136.9   136.7     0      -.1      -.1      0        .2
     Manufacturing industries.....................|    6.607   138.4   138.4   138.3      .4    -.1       .1      0       0
     Nonmanufacturing industries..................|   18.610   137.2   136.3   136.1     -.1    -.1      -.2      0        .4
                                                  |
 Intermediate materials, supplies, and components.|  100.000   122.2   124.7   125.2     1.9     .4       .6       .8      .3
   Materials and components for manufacturing.....|   47.713   123.8   124.9   125.1     -.3     .2       .2       .3      .2
     Materials for food manufacturing.............|    3.633   119.6   121.1   122.5    -2.1    1.2     -1.5      1.3     1.4
     Materials for nondurable manufacturing.......|   15.730   123.3   125.3   125.8      .6     .4       .4       .6      .4
     Materials for durable manufacturing..........|   10.415   124.3   126.2   125.8    -1.1    -.3       .8       .2     -.4
     Components for manufacturing.................|   17.935   125.6   125.6   125.6     -.2    0        0        0        .1
   Materials and components for construction......|   14.004   148.5   150.4   149.7     1.6    -.5       .7      -.1     -.5
   Processed fuels and lubricants.................|   11.845    82.5    90.1    92.5    12.4    2.7      3.0      3.9     1.8
     Manufacturing industries ....................|    4.580    86.5    92.3    94.5     8.4    2.4      1.9      3.1     1.9
     Nonmanufacturing industries..................|    7.265    80.0    88.6    91.1    14.9    2.8      3.6      4.3     1.8
   Containers.....................................|    3.881   141.6   144.5   146.3     4.1    1.2      0        1.8     1.2
   Supplies.......................................|   22.557   133.7   134.4   134.4      .1    0         .1       .2      .1
     Manufacturing industries.....................|    5.131   140.4   141.0   140.9      .2    -.1       .1       .4     -.1
     Nonmanufacturing industries..................|   17.426   130.9   131.5   131.6     0       .1       .1       .2      .1
       Feeds......................................|    1.242    87.6    88.1    88.6    -4.6     .6      -.9       .8      .6
       Other supplies.............................|   16.184   136.1   136.8   136.8      .4    0         .1       .2     0
                                                  |
 Crude materials for further processing...........|  100.000    97.4   102.1   106.9    16.1    4.7      -.2      4.6     5.1
   Foodstuffs and feedstuffs......................|   45.019    99.6   100.1   100.5     -.8     .4     -4.8      3.8     1.3
   Nonfood materials..............................|   54.981    92.3    99.9   107.4    30.2    7.5      3.2      5.3     7.6
     Nonfood materials except fuel 3/.............|   29.160    87.5    96.2   102.7    23.9    6.8      5.1      3.5     6.9
       Manufacturing 3/...........................|   27.653    79.6    87.8    94.1    25.0    7.2      5.2      3.7     7.2
       Construction...............................|    1.507   195.2   198.3   197.1     2.8    -.6       .5      1.7     -.8
     Crude fuel 4/................................|   25.821    91.6    96.9   105.3    39.8    8.7       .7      7.7     8.7
       Manufacturing industries...................|    2.104    90.2    96.4   106.5    43.3   10.5      2.2      8.0    10.5
       Nonmanufacturing industries................|   23.717    93.3    98.6   107.0    39.5    8.5       .4      7.6     8.5
                                                  |
                Special groupings                 |
                                                  |
 Finished goods, excluding foods..................|5/ 76.715   131.6   133.0   134.0     3.8     .8       .5       .5     1.1
 Intermediate materials less foods and feeds......|6/ 95.125   122.9   125.4   125.9     2.0     .4       .6       .7      .3
 Intermediate foods and feeds.....................|6/  4.875   109.8   110.9   112.1    -2.7    1.1     -1.4      1.1     1.3
 Crude materials less agricultural products 3/ 7/.|8/ 52.084    92.2   100.3   108.1    33.1    7.8      3.5      5.2     7.9
                                                  |
 Finished energy goods............................|5/ 11.972    77.5    83.6    85.9    13.9    2.8      3.4      3.7     2.2
 Finished goods less energy.......................|5/ 88.028   142.5   142.5   143.2     1.6     .5      -.2      0        .8
 Finished consumer goods less energy..............|5/ 62.811   144.6   144.7   145.9     2.2     .8      -.3       .1     1.0
                                                  |
 Finished goods less foods and energy.............|5/ 64.743   145.6   145.1   145.6     1.7     .3      0        -.1      .8
 Finished consumer goods less foods and energy....|5/ 39.526   151.0   150.5   151.6     2.8     .7       .1      -.1     1.1
 Consumer nondurable goods less foods and energy..|5/ 23.230   165.2   165.5   167.7     4.8    1.3       .2      -.2     1.4
                                                  |
 Intermediate energy goods........................|6/ 11.941    82.2    89.8    92.1    12.3    2.6      2.9      3.8     1.8
 Intermediate materials less energy...............|6/ 88.059   131.1   132.3   132.4      .3     .1       .3       .3      .1
 Intermediate materials less foods and energy.....|6/ 83.184   132.5   133.7   133.7      .5    0         .4       .2      .1
                                                  |
 Crude energy materials 3/........................|8/ 33.303    77.1    85.2    94.1    51.3   10.4      3.7      7.2    10.4
 Crude materials less energy......................|8/ 66.697   107.6   109.4   110.4     -.2     .9     -2.4      3.1     1.7
 Crude nonfood materials less energy 4/...........|8/ 21.678   131.4   136.8   139.6     1.2    2.0      2.3      1.8     2.2
                                                  |
 _______________________________________________________________________________________________________________________________

   1/  Comprehensive relative importance figures are initially computed          3/  Includes crude petroleum.
       after the publication of December indexes and are recalculated            4/  Excludes crude petroleum.
       after final December indexes are available.  The first-published          5/  Percent of total finished goods.
       and final December relative importances initially appear,                 6/  Percent of total intermediate materials.
       respectively, in the release tables containing January and May data.      7/  Formerly titled "Crude materials for
   2/  The indexes for May 1999 have been recalculated to incorporate                further processing, excluding crude
       late reports and corrections by respondents.  All indexes                     foodstuffs and feedstuffs, plant and
       are subject to revision four months after original publication.               animal fibers, oilseeds, and leaf tobacco."
                                                                                 8/  Percent of total crude materials.
Table 2.  Producer price indexes and percent changes for selected commodity groupings by stage of processing
(1982=100 unless otherwise indicated)
____________________________________________________________________________________________________________________________________
           |                                                       |                       |Unadjusted     |
           |                                                       |                       | percent       |Seasonally adjusted
           |                                                       |   Unadjusted index    |change to      |percent change from:
 Commodity |                                                       |                       |Sept.1999 from:|
   code    |                      Grouping                         |_______________________|_______________|________________________
           |                                                       |       |       |       |       |       |       |       |
           |                                                       | May   |Aug.   |Sept.  | Sept. | Aug.  |June to|July to|Aug. to
           |                                                       |1999 1/|1999 1/|1999 1/| 1998  | 1999  |  July |  Aug. |  Sept.
___________|_______________________________________________________|_______|_______|_______|_______|_______|_______|_______|________
           |                                                       |
           |FINISHED GOODS.........................................| 132.4   133.7   134.8     3.2    0.8      0.2     0.5     1.1
           | FINISHED CONSUMER GOODS...............................| 131.2   133.1   134.6     4.3    1.1       .3      .7     1.3
           |  FINISHED CONSUMER FOODS..............................| 134.5   135.7   137.0     1.2    1.0      -.9      .4     1.0
           |                                                       |
01-11      |   Fresh fruits and melons 2/..........................| 115.4    96.7   105.4    14.2    9.0     -3.2    -3.2     9.0
01-13      |   Fresh and dry vegetables 2/.........................| 111.5   111.1   120.4    -8.0    8.4     -8.1    -5.3     8.4
01-71-07   |   Eggs for fresh use (Dec. 1991=100)..................|  66.8    82.7    75.7   -14.8   -8.5      7.1     2.8   -12.8
02-11      |   Bakery products 2/..................................| 177.7   177.8   178.0     1.2     .1       .1     0        .1
02-13      |   Milled rice 2/......................................| 124.2   125.3   122.9    -1.3   -1.9      -.1     -.1    -1.9
02-14-02   |   Pasta products (June 1985=100) 2/...................| 122.0   122.0   122.0     -.7    0        0        .1     0
02-21-01   |   Beef and veal.......................................| 104.3   108.6   110.0    13.2    1.3     -3.4     -.7     1.8
02-21-04   |   Pork................................................| 100.2   104.1   107.4    11.6    3.2     -3.8     7.1     9.7
02-22-03   |   Processed young chickens............................| 114.8   112.8   113.3   -18.1     .4     -4.6    -3.7      .6
02-22-06   |   Processed turkeys...................................|  89.8    96.6    99.2    -1.2    2.7     -3.0     1.3     2.0
02-23      |   Finfish and shellfish...............................| 187.1   188.4   193.4     8.2    2.7       .8     -.4     3.5
02-3       |   Dairy products......................................| 133.0   139.9   143.9    -1.2    2.9       .4     1.2     1.9
02-4       |   Processed fruits and vegetables 2/..................| 127.9   127.2   127.5     1.8     .2      0       -.5      .2
02-55      |   Confectionery end products 2/.......................| 170.6   171.0   171.4     1.1     .2       .1      .1      .2
02-62      |   Soft drinks.........................................| 137.4   138.1   138.1     2.4    0         .1     1.1     0
02-63-01   |   Roasted coffee 2/...................................| 135.3   135.3   133.3    -2.6   -1.5      0       -.1    -1.5
02-78      |   Shortening and cooking oils 2/......................| 141.9   139.2   143.0      .4    2.7     -3.3     4.3     2.7
           |                                                       |
           |  FINISHED CONSUMER GOODS EXCLUDING FOODS..............| 129.6   131.8   133.4     5.6    1.2       .9      .8     1.4
           |                                                       |
02-61      |   Alcoholic beverages.................................| 136.3   137.1   137.5     2.1     .3       .4     -.5      .6
03-81-01   |   Women's apparel 2/..................................| 124.2   121.5   122.1     -.5     .5      -.2     -.8      .5
03-81-02   |   Men's and boys' apparel.............................| 133.5   132.6   132.8     -.5     .2      -.3     0        .2
03-81-03   |   Girls', children's, and infants' apparel 2/.........| 117.8   117.2   116.3    -3.5    -.8       .1     -.5     -.8
03-82      |   Textile housefurnishings 2/.........................| 122.7   122.7   122.6     -.5    -.1      -.1     0       -.1
04-3       |   Footwear............................................| 144.4   144.5   144.6     -.1     .1      0       -.1      .1
05-41      |   Residential electric power (Dec. 1990=100)..........| 108.3   113.2   114.2     0       .9       .3     1.1      .8
05-51      |   Residential gas (Dec. 1990=100).....................| 111.0   114.1   117.2     4.5    2.7       .4     1.1     2.5
05-71      |   Gasoline............................................|  65.6    75.1    77.7    52.4    3.5     12.7     9.1     2.2
05-73-02-01|   Fuel oil No. 2......................................|  52.2    63.0    69.4    44.6   10.2     15.2     5.3     6.0
06-35      |   Pharmaceutical preps, ethical (Prescription) 2/.....| 332.8   337.0   337.5     1.5     .1       .9      .1      .1
06-36      |   Pharmaceutical preps,proprietary (Over-counter) 2/..| 185.9   186.4   186.8     1.2     .2      -.2      .1      .2
06-71      |   Soaps and synthetic detergents 2/...................| 125.5   126.7   127.3      .6     .5      1.3     -.3      .5
06-75      |   Cosmetics and other toilet preparations 2/..........| 133.9   134.7   134.2      .8    -.4      0        .1     -.4
07-12      |   Tires, tubes, tread, etc 2/.........................|  93.3    92.8    92.9    -1.2     .1     -1.6      .8      .1
09-15-01   |   Sanitary papers and health products 2/..............| 142.7   143.2   143.8    -1.0     .4      1.4    -2.5      .4
09-31-01   |   Newspaper circulation 2/............................| 207.1   207.5   207.9     2.6     .2      0       0        .2
09-32-01   |   Periodical circulation..............................| 197.2   197.1   197.1     1.3    0         .2      .2      .1
09-33      |   Book publishing 2/..................................| 211.5   211.4   211.9     2.6     .2       .1     -.3      .2
12-1       |   Household furniture 2/..............................| 150.1   150.6   150.7     1.4     .1       .1      .1      .1
12-3       |   Floor coverings 2/..................................| 126.7   127.1   127.1     -.7    0        -.4     -.2     0
12-4       |   Household appliances ...............................| 108.7   108.7   108.4     -.6    -.3       .1      .1     -.1
12-5       |   Home electronic equipment 2/........................|  74.0    73.9    73.9    -1.1    0        0       -.1     0
12-62      |   Household glassware 2/..............................| 164.2   164.3   164.4      .8     .1      -.1      .1      .1
12-64      |   Household flatware 2/...............................| 140.0   139.3   139.3      .7    0        -.5     0       0
12-66      |   Lawn and garden equip., ex. tractors 2/.............| 132.2   131.8   132.1     0       .2      0       0        .2
14-11-01   |   Passenger cars......................................| 130.2   126.8   126.4     -.5    -.3      -.2     -.1     2.0
15-11      |   Toys, games, and children's vehicles................| 123.5   123.8   122.7    -1.1    -.9      -.1     0       -.8
15-12      |   Sporting and athletic goods 2/......................| 126.3   125.7   126.2     0       .4      -.2     -.2      .4
15-2       |   Tobacco products 2/.................................| 363.5   363.8   394.5    37.3    8.4      0        .1     8.4
15-5       |   Mobile homes 2/.....................................| 158.3   158.3   159.0     2.6     .4       .7     -.5      .4
15-94-02   |   Jewelry, platinum, & karat gold 2/..................| 127.3   125.2   125.1    -2.0    -.1      -.2    -1.4     -.1
15-94-04   |   Costume jewelry and novelties 2/....................| 140.1   140.1   140.1      .2    0         .1     0       0
           |                                                       |
           | CAPITAL EQUIPMENT.....................................| 137.6   136.9   136.7     0      -.1      -.1     0        .2
           |                                                       |
11-1       |   Agricultural machinery and equipment 2/.............| 152.3   151.3   151.2      .3    -.1       .1      .1     -.1
11-2       |   Construction machinery and equipment................| 147.3   147.4   147.5     1.5     .1       .2      .1      .3
11-37      |   Metal cutting machine tools 2/......................| 160.4   160.9   160.8      .4    -.1      0        .3     -.1
11-38      |   Metal forming machine tools 2/......................| 159.7   159.9   159.8      .9    -.1      -.1      .1     -.1
11-39      |   Tools, dies, jigs, fixtures, and ind. molds 2/......| 139.7   140.1   140.1      .9    0         .4     0       0
11-41      |   Pumps, compressors, and equipment...................| 151.5   151.9   151.9     1.7    0         .3      .1      .1
11-44      |   Industrial material handling equipment 2/...........| 132.9   133.0   132.9      .8    -.1      0       0       -.1
11-51      |   Electronic computers (Dec. 1998=100) 2/.............|  88.5    83.5    83.1   -21.4    -.5     -1.0    -3.2     -.5
11-62      |   Textile machinery 2/................................| 154.1   154.3   154.3     1.0    0        0        .1     0
11-64      |   Paper industries machinery (June 1982=100)..........| 162.6   162.8   163.0     2.1     .1       .1      .2      .2
11-65      |   Printing trades machinery 2/........................| 140.8   141.4   141.4    -1.0    0        -.1     0       0
11-74      |   Transformers and power regulators 2/................| 130.7   131.1   131.4     -.3     .2       .2      .2      .2
11-76      |   Communication & related equip. (Dec. 1985=100) 2/...| 113.0   113.0   112.7     -.8    -.3      -.1     0       -.3
11-79-05   |   X-ray and electromedical equipment 2/...............| 105.1   105.2   103.9    -1.8   -1.2       .5     -.8    -1.2
11-91      |   Oil field and gas field machinery ..................| 126.5   126.6   126.3      .3    -.2      0        .2     -.2
11-92      |   Mining machinery and equipment 2/...................| 144.5   144.8   144.2     1.3    -.4       .3     -.3     -.4
11-93      |   Office and store machines and equipment 2/..........| 112.3   112.3   112.4      .1     .1      0       0        .1
12-2       |   Commercial furniture 2/.............................| 156.2   157.0   157.0     1.2    0         .1      .1     0
14-11-05   |   Light motor trucks..................................| 158.2   154.3   151.9     1.1   -1.6      -.4     -.4      .8
14-11-06   |   Heavy motor trucks 2/...............................| 146.7   147.2   147.6     2.0     .3       .1     -.1      .3
14-14      |   Truck trailers 2/...................................| 136.0   136.2   137.3     1.6     .8       .2     0        .8
14-21-02   |   Civilian aircraft (Dec. 1985=100)...................| 151.4   151.2   151.4      .9     .1      -.1      .1      .2
14-31      |   Ships (Dec. 1985=100) 2/............................| 145.8   145.8   145.8     0      0        0       0       0
14-4       |   Railroad equipment..................................| 134.5   136.0   135.6      .2    -.3      -.1      .1     -.4
           |                                                       |
           |INTERMEDIATE MATERIALS, SUPPLIES, AND COMPONENTS.......| 122.2   124.7   125.2     1.9     .4       .6      .8      .3
           |                                                       |
           | INTERMEDIATE FOODS AND FEEDS..........................| 109.8   110.9   112.1    -2.7    1.1     -1.4     1.1     1.3
           |                                                       |
02-12-03   |   Flour 2/............................................| 104.6   105.9   103.9      .6   -1.9     -2.0     2.6    -1.9
02-53      |   Refined sugar 2/....................................| 122.7   122.5   121.8     1.2    -.6       .2     -.3     -.6
02-54      |   Confectionery materials.............................|  94.1    92.8    93.4     0       .6     -2.0     -.4      .3
02-72      |   Crude vegetable oils 2/.............................|  95.1    85.1    85.4   -34.9     .4    -10.5     9.5      .4
02-9       |   Prepared animal feeds 2/............................|  97.0    97.4    97.8    -3.9     .4      -.8      .7      .4
           |                                                       |
           | INTERMEDIATE MATERIALS LESS FOODS AND FEEDS...........| 122.9   125.4   125.9     2.0     .4       .6      .7      .3
           |                                                       |
03-1       |   Synthetic fibers 2/.................................| 103.5   102.7   102.7    -6.2    0       -1.8     -.2     0
03-2       |   Processed yarns and threads 2/......................| 108.5   108.0   107.8    -4.3    -.2      -.3     -.1     -.2
03-3       |   Gray fabrics 2/.....................................| 115.5   112.1   112.5    -6.7     .4      -.4    -1.5      .4
03-4       |   Finished fabrics....................................| 122.6   122.9   123.0     -.6     .1      -.2      .3      .2
03-83-03   |   Industrial textile products 2/......................| 129.0   129.6   129.7     -.5     .1       .3     -.1      .1
04-2       |   Leather.............................................| 175.1   174.7   176.4    -1.5    1.0      -.1      .9      .5
05-32      |   Liquefied petroleum gas 2/..........................|  66.0    81.1    94.2    79.4   16.2     -1.1    15.7    16.2
____________________________________________________________________________________________________________________________________
See footnotes at end of table.

Table 2.  Producer price indexes and percent changes for selected commodity groupings by stage of processing - Continued
(1982=100 unless otherwise indicated)
____________________________________________________________________________________________________________________________________
           |                                                       |                       |Unadjusted     |
           |                                                       |                       | percent       |Seasonally adjusted
           |                                                       |   Unadjusted index    |change to      |percent change from:
 Commodity |                                                       |                       |Sept.1999 from:|
   code    |                      Grouping                         |_______________________|_______________|________________________
           |                                                       |       |       |       |       |       |       |       |
           |                                                       | May   |Aug.   |Sept.  | Sept. | Aug.  |June to|July to|Aug. to
           |                                                       |1999 1/|1999 1/|1999 1/| 1998  | 1999  |  July |  Aug. |  Sept.
___________|_______________________________________________________|_______|_______|_______|_______|_______|_______|_______|________
           |                                                       |
           | INTERMEDIATE MATERIALS LESS FOODS AND FEEDS           |
           |   -Continued..........................................|
05-42      |   Commercial electric power...........................| 126.2   136.1   136.3    -1.0    0.1     -0.2     2.2     0.1
05-43      |   Industrial electric power...........................| 127.4   133.7   134.1     -.8     .3       .1     1.9     0
05-52      |   Commercial natural gas (Dec. 1990=100)..............| 103.1   107.2   111.3     8.2    3.8       .7     3.0     4.3
05-53      |   Industrial natural gas (Dec. 1990=100)..............|  97.7   102.8   106.5     7.9    3.6      4.4     1.9     3.6
05-54      |   Natural gas to electric utilities (Dec. 1990=100)...|  77.6    80.2    84.6    17.5    5.5      -.9     1.7     6.7
05-72-03   |   Jet fuels...........................................|  48.3    57.7    63.7    47.8   10.4      6.9     9.7     7.8
05-73-03   |   No. 2 Diesel fuel...................................|  53.0    65.6    67.5    40.3    2.9     15.4     4.1    -3.8
05-74      |   Residual fuel 2/....................................|  50.8    56.2    67.7    73.6   20.5       .6     7.5    20.5
06-1       |   Industrial chemicals 2/.............................| 117.0   118.8   119.4     -.1     .5      -.3      .3      .5
06-21      |   Prepared paint......................................| 157.5   157.5   157.5     1.4    0         .1      .1     0
06-22      |   Paint materials 2/..................................| 144.4   145.0   144.2      .1    -.6     -1.3     1.0     -.6
06-31      |   Medicinal and botanical chemicals ..................| 138.8   144.4   145.3     7.5     .6       .2      .3      .7
06-4       |   Fats and oils, inedible 2/..........................|  79.2    78.8    88.3   -20.7   12.1       .3    -1.1    12.1
06-51      |   Mixed fertilizers...................................| 114.6   114.2   113.4    -1.4    -.7       .4      .4     -.4
06-52-01   |   Nitrogenates........................................|  95.0    89.0    91.5   -11.1    2.8      -.8     -.3     2.7
06-52-02   |   Phosphates 2/.......................................| 114.2   113.5   111.9     -.5   -1.4      -.5      .2    -1.4
06-53      |   Other agricultural chemicals........................| 140.4   147.0   146.7      .8    -.2      -.5     2.3     -.8
06-6       |   Plastic resins and materials 2/.....................| 122.1   128.4   130.4     9.0    1.6      1.9     3.0     1.6
07-11-02   |   Synthetic rubber 2/.................................| 113.0   113.4   113.8    -2.6     .4      -.4      .4      .4
07-21      |   Plastic construction products ......................| 126.0   129.6   130.5     3.9     .7      1.6      .2      .9
07-22      |   Unsupported plastic film, sheet, & other shapes 2/..| 125.4   127.2   127.5      .7     .2      -.3      .6      .2
07-26      |   Plastic parts and components for manufacturing 2/...| 117.6   117.5   117.6      .4     .1       .1     -.2      .1
08-11      |   Softwood lumber 2/..................................| 197.3   205.2   196.6    12.2   -4.2      5.9    -6.0    -4.2
08-12      |   Hardwood lumber ....................................| 176.5   176.2   177.2     -.5     .6      -.2      .2      .6
08-2       |   Millwork 2/.........................................| 174.1   176.7   176.9     3.1     .1       .5      .1      .1
08-3       |   Plywood 2/..........................................| 179.1   202.0   179.0     5.3  -11.4      6.2    -2.7   -11.4
09-11      |   Woodpulp 2/.........................................| 114.1   121.0   126.5     4.5    4.5      1.0     2.3     4.5
09-13      |   Paper...............................................| 140.3   140.6   141.3    -2.0     .5       .6     -.4      .4
09-14      |   Paperboard..........................................| 149.3   161.2   159.8     7.2    -.9      3.5     3.6    -2.2
09-15-03   |   Paper boxes and containers 2/.......................| 156.8   161.5   164.0     6.0    1.5      -.1     2.7     1.5
09-2       |   Building paper and board 2/.........................| 141.6   149.8   145.6     2.0   -2.8      2.7      .1    -2.8
09-37      |   Commercial printing (June 1982=100) 2/..............| 152.2   152.4   152.3     -.1    -.1      0        .2     -.1
10-15      |   Foundry and forge shop products.....................| 135.1   135.2   135.1      .1    -.1      0       0       0
10-17      |   Steel mill products 2/..............................| 104.6   105.0   104.6    -7.7    -.4      -.5      .2     -.4
10-22      |   Primary nonferrous metals 2/........................|  99.7   104.3   107.3     3.7    2.9      4.7     2.0     2.9
10-25-01   |   Aluminum mill shapes 2/.............................| 135.4   139.4   136.8    -2.8   -1.9       .5     1.4    -1.9
10-25-02   |   Copper and brass mill shapes 2/.....................| 149.3   155.8   158.7     4.7    1.9      5.1      .4     1.9
10-26      |   Nonferrous wire and cable 2/........................| 134.2   135.7   137.4    -2.4    1.3       .8     1.2     1.3
10-3       |   Metal containers 2/.................................| 106.3   106.0   106.0    -2.3    0        0       0       0
10-4       |   Hardware............................................| 147.9   149.9   149.7     1.8    -.1       .1      .5     -.1
10-5       |   Plumbing fixtures and brass fittings................| 176.1   176.4   176.7     1.2     .2       .7     -.6      .5
10-6       |   Heating equipment...................................| 154.0   154.6   154.8     1.0     .1       .1      .3      .1
10-7       |   Fabricated structural metal products................| 142.9   143.2   143.3      .1     .1       .2      .1      .1
10-88      |   Fabricated ferrous wire products (June 1982=100) 2/.| 130.4   130.5   130.9      .6     .3      -.1     -.1      .3
10-89      |   Other misc. metal products 2/.......................| 125.5   125.4   125.4     -.5    0        -.1     -.1     0
11-45      |   Mechanical power transmission equipment.............| 161.4   161.5   161.5     2.3    0         .1      .1      .2
11-48      |   Air conditioning and refrigeration equipment........| 135.7   135.7   135.8     -.3     .1      -.3      .1      .1
11-49-02   |   Metal valves, ex.fluid power (Dec. 1982=100) 2/.....| 160.2   160.5   160.3     2.2    -.1       .3      .2     -.1
11-49-05   |   Ball and roller bearings............................| 167.0   166.9   167.0      .8     .1      -.1      .1      .1
11-71      |   Wiring devices......................................| 152.2   152.6   152.3    -1.5    -.2       .3     -.3     -.1
11-73      |   Motors, generators, motor generator sets............| 145.9   145.8   145.4     -.3    -.3       .1     -.5     -.1
11-75      |   Switchgear, switchboard, etc., equipment............| 150.8   151.2   150.9     1.8    -.2       .5      .1     0
11-78      |   Electronic components and accessories 2/............|  98.1    98.0    98.7     -.8     .7       .1     -.1      .7
11-94      |   Internal combustion engines.........................| 143.0   143.1   143.1     1.5    0        0       -.1     -.1
11-95      |   Machine shop products 2/............................| 136.8   136.7   136.7      .1    0        -.1      .1     0
13-11      |   Flat glass 2/.......................................| 106.0   107.1   107.1      .4    0         .2      .2     0
13-22      |   Cement..............................................| 151.4   151.6   151.4     2.4    -.1      0        .4      .1
13-3       |   Concrete products...................................| 144.1   143.7   144.1     1.9     .3      0        .3      .3
13-6       |   Asphalt felts and coatings 2/.......................|  98.7    99.1    99.8     -.5     .7       .1      .4      .7
13-7       |   Gypsum products 2/..................................| 202.3   215.7   213.9    17.8    -.8      -.1     5.0     -.8
13-8       |   Glass containers 2/.................................| 126.0   125.9   125.7     -.2    -.2       .1     -.4     -.2
14-12      |   Motor vehicle parts 2/..............................| 114.0   113.5   113.4    -1.0    -.1      0       0       -.1
14-23      |   Aircraft engines & engine parts (Dec. 1985=100).....| 137.6   137.7   137.6      .8    -.1       .2      .2     -.1
14-25      |   Aircraft parts & aux.equip.,nec (June 1985=100) 2/..| 143.6   142.6   143.0     -.8     .3      0       -.1      .3
15-42      |   Photographic supplies 2/............................| 128.4   128.3   128.4     -.5     .1       .3     -.2      .1
15-6       |   Medical/surgical/personal aid devices...............| 144.9   144.9   144.7      .8    -.1      -.1     1.0     -.1
           |                                                       |
           | CRUDE MATERIALS FOR FURTHER PROCESSING................|  97.4   102.1   106.9    16.1    4.7      -.2     4.6     5.1
           |                                                       |
           |  CRUDE FOODSTUFFS AND FEEDSTUFFS......................|  99.6   100.1   100.5     -.8     .4     -4.8     3.8     1.3
           |                                                       |
01-21      |   Wheat 2/............................................|  78.8    79.6    80.5     7.6    1.1     -6.8     7.1     1.1
01-22-02-05|   Corn................................................|  85.5    79.2    72.7      .3   -8.2    -16.7    25.7    -5.0
01-31      |   Slaughter cattle 2/.................................|  95.5    97.3    97.5     9.1     .2     -2.4      .6      .2
01-32      |   Slaughter hogs......................................|  63.8    62.0    55.1    13.8  -11.1    -13.3    17.7    -2.9
01-41-02   |   Slaughter broilers/fryers...........................| 144.2   126.9   133.8   -24.8    5.4     -7.9   -12.6     8.2
01-42      |   Slaughter turkeys...................................| 116.9   130.6   135.4     9.8    3.7      -.2    -1.8     3.3
01-6       |   Fluid milk..........................................|  94.8   111.7   118.4    -4.0    6.0      3.5     5.8     4.5
01-83-01-31|   Soybeans 2/.........................................|  79.6    79.9    82.3    -9.1    3.0    -10.9    13.3     3.0
02-52-01-01|   Cane sugar,raw 2/...................................| 118.3   115.2   114.0    -1.6   -1.0       .9    -4.5    -1.0

           |                                                       |
           |  CRUDE NONFOOD MATERIALS..............................|  92.3    99.9   107.4    30.2    7.5      3.2     5.3     7.6
           |                                                       |
01-51-01-01|   Raw cotton..........................................|  94.9    83.4    80.7   -32.4   -3.2    -10.3     5.9    -1.6
01-92-01-01|   Leaf tobacco 2/.....................................|   (3)    96.7   105.5      .3    9.1      (3)      .9     9.1
04-11      |   Cattle hides 2/.....................................| 137.5   145.2   149.8    -7.5    3.2      -.2     6.4     3.2
05-1       |   Coal 2/.............................................|  91.4    88.8    85.4    -5.2   -3.8     -4.3     -.2    -3.8
05-31      |   Natural gas 2/......................................|  91.4   100.0   113.3    62.3   13.3      3.2    10.6    13.3
05-61      |   Crude petroleum 2/..................................|  47.2    57.2    65.4    81.7   14.3     10.0     6.5    14.3
08-5       |   Logs, timber, etc...................................| 201.2   203.8   202.7     -.1    -.5      1.3     1.3     -.5
09-12      |   Wastepaper 2/.......................................| 147.4   201.9   215.2    53.2    6.6     22.4    -2.4     6.6
10-11      |   Iron ore 2/.........................................|  94.9    94.8    94.8     -.8    0        0       0       0
10-12      |   Iron and steel scrap 2/.............................| 134.4   143.4   145.4    -1.4    1.4      -.4     4.7     1.4
10-21      |   Nonferrous metal ores (Dec. 1983=100) 2/............|  62.1    62.3    64.2    -2.3    3.0      2.7     3.5     3.0
10-23-01   |   Copper base scrap 2/................................| 104.6   114.6   117.5     3.9    2.5     13.7    -1.8     2.5
10-23-02   |   Aluminum base scrap.................................| 158.1   170.5   172.2    15.0    1.0      7.0      .6     1.6
13-21      |   Construction sand, gravel, and crushed stone........| 156.6   157.7   157.5     2.5    -.1       .1      .3     0
____________________________________________________________________________________________________________________________________

1/  The indexes for May 1999 have been recalculated to incorporate          2/  Not seasonally adjusted.
    late reports and corrections by respondents.  All indexes               3/  Not available.
    are subject to revision four months after original publication.
Table 3.  Producer price indexes for selected commodity groupings
(1982=100 unless otherwise indicated)
_______________________________________________________________________________________________
         |                                                |                                   |
         |                                                |         Unadjusted index 1/       |
Commodity|                                                |___________________________________|
  code   |                    Grouping                    |  May 1999 | Aug. 1999 |Sept. 1999 |
_________|________________________________________________|___________|___________|___________|
         |                                                |           |           |           |
         | Finished Goods (1967=100)......................|   371.5   |   375.1   |   378.2   |
         | All commodities................................|   124.7   |   126.8   |   128.0   |
         |                                                |           |           |           |
         |                                                |           |           |           |
         |            MAJOR COMMODITY GROUPS              |           |           |           |
         |                                                |           |           |           |
         | Farm products and processed foods and feeds....|   120.1   |   120.9   |   121.9   |
01       |   Farm products................................|    99.6   |    99.0   |    99.6   |
02       |   Processed foods and feeds....................|   130.3   |   131.8   |   132.9   |
         |                                                |           |           |           |
         | Industrial commodities.........................|   125.6   |   127.9   |   129.2   |
03       |   Textile products and apparel.................|   121.2   |   120.3   |   120.4   |
04       |   Hides, skins, leather, and related products..|   145.0   |   146.2   |   147.4   |
05       |   Fuels and related products and power 2/......|    78.9   |    86.1   |    89.9   |
06       |   Chemicals and allied products 2/.............|   142.6   |   144.6   |   145.2   |
07       |   Rubber and plastic products..................|   122.0   |   122.9   |   123.0   |
08       |   Lumber and wood products.....................|   183.7   |   189.5   |   184.8   |
09       |   Pulp, paper, and allied products.............|   172.6   |   175.4   |   176.1   |
10       |   Metals and metal products....................|   123.8   |   125.0   |   125.4   |
11       |   Machinery and equipment......................|   124.3   |   124.2   |   124.2   |
12       |   Furniture and household durables.............|   131.5   |   131.8   |   131.8   |
13       |   Nonmetallic mineral products.................|   138.5   |   139.6   |   139.7   |
14       |   Transportation equipment.....................|   141.5   |   140.1   |   139.8   |
15       |   Miscellaneous products.......................|   165.4   |   165.1   |   169.1   |
         |                                                |           |           |           |
         | Industrial commodities less fuels and related  |           |           |           |
         |   products and power...........................|   138.9   |   139.5   |   139.7   |
         |                                                |           |           |           |
         |                                                |           |           |           |
         |             OTHER COMMODITY GROUPINGS          |           |           |           |
         |                                                |           |           |           |
01-1     | Fruits and melons, fresh and dry vegetables,   |           |           |           |
         |   and tree nuts................................|   122.3   |   111.2   |   120.0   |
01-2     | Grains.........................................|    84.6   |    80.9   |    75.9   |
01-3     | Slaughter livestock............................|    87.9   |    88.6   |    86.7   |
01-4     | Slaughter poultry..............................|   136.6   |   126.3   |   132.6   |
01-5     | Plant and animal fibers........................|    93.8   |    82.7   |    80.0   |
01-7     | Chicken eggs...................................|    77.1   |    95.7   |    87.7   |
01-8     | Hay, hayseeds, and oilseeds....................|   107.9   |   102.1   |   101.5   |
01-83    | Oilseeds.......................................|    93.3   |    91.5   |    92.4   |
01-9     | Other farm products............................|  'N.A.'   |   144.2   |   157.4   |
02-1     | Cereal and bakery products.....................|   157.8   |   157.9   |   157.6   |
02-2     | Meats, poultry, and fish.......................|   114.1   |   116.6   |   118.2   |
02-22    | Processed poultry..............................|   114.4   |   114.5   |   115.2   |
02-5     | Sugar and confectionery........................|   135.9   |   135.6   |   135.7   |
02-6     | Beverages and beverage materials...............|   138.2   |   138.8   |   138.8   |
02-63    | Packaged beverage materials....................|   133.3   |   133.3   |   131.7   |
02-7     | Fats and oils..................................|   124.1   |   118.8   |   120.8   |
03-81    | Apparel........................................|   127.3   |   125.9   |   126.1   |
04-4     | Other leather and related products.............|   145.0   |   145.6   |   146.3   |
05-3     | Gas fuels 2/...................................|    83.6   |    93.8   |   106.9   |
05-4     | Electric power.................................|   126.7   |   133.9   |   134.5   |
05-7     | Refined petroleum products.....................|    59.8   |    68.9   |    72.4   |
06-3     | Drugs and pharmaceuticals......................|   249.8   |   252.5   |   253.3   |
06-5     | Agricultural chemicals and products............|   123.0   |   123.9   |   123.7   |
06-7     | Other chemicals and allied products............|   134.6   |   135.2   |   135.1   |
07-1     | Rubber and rubber products.....................|   114.2   |   114.1   |   114.2   |
07-11    | Rubber, except natural rubber..................|   112.4   |   112.8   |   113.3   |
07-13    | Miscellaneous rubber products..................|   138.3   |   138.4   |   138.2   |
07-2     | Plastic products...............................|   128.8   |   130.2   |   130.3   |
08-1     | Lumber.........................................|   188.9   |   194.3   |   188.6   |
09-1     | Pulp, paper, and products, excluding building  |           |           |           |
         |   paper and board..............................|   145.2   |   149.9   |   151.3   |
09-15    | Converted paper and paperboard products........|   152.3   |   155.0   |   156.8   |
10-1     | Iron and steel.................................|   113.1   |   114.2   |   114.1   |
10-2     | Nonferrous metals..............................|   117.1   |   120.2   |   121.8   |
10-25    | Nonferrous mill shapes.........................|   130.9   |   134.5   |   133.4   |
11-3     | Metalworking machinery and equipment...........|   148.1   |   148.3   |   148.4   |
11-4     | General purpose machinery and equipment........|   149.3   |   149.5   |   149.5   |
11-6     | Special industry machinery.....................|   161.3   |   161.7   |   161.6   |
11-7     | Electrical machinery and equipment.............|   119.8   |   119.9   |   119.9   |
11-9     | Miscellaneous machinery and equipment..........|   133.1   |   133.2   |   133.2   |
12-6     | Other household durable goods..................|   152.8   |   152.8   |   152.9   |
13-2     | Concrete ingredients...........................|   152.1   |   152.8   |   152.6   |
14-1     | Motor vehicles and equipment...................|   131.4   |   129.3   |   128.8   |
15-1     | Toys, sporting goods, small arms, etc..........|   132.5   |   132.4   |   132.4   |
15-4     | Photographic equipment and supplies............|   112.4   |   110.8   |   110.9   |
15-9     | Other miscellaneous products...................|   134.9   |   135.1   |   135.1   |
__________________________________________________________|___________|___________|___________|

1/  Data for May 1999 have been revised to reflect the availability of late reports and
    corrections by respondents.  All data are subject to revision 4 months after original
    publication.

2/  Prices of some items in this grouping are lagged 1 month.
Table 4.  Producer price indexes for the net output of major industry groups, not seasonally adjusted
 ____________________________________________________________________________________________________________________
                   |                                              |     |         Index         |  Percent change
   Industry        |                Industry 1/                   |Index|_______________________|to_Sep._1999_from:__
     code          |                                              |base |       |       |       |        |
                   |                                              |     |May    |Aug.   |Sep.   |  Sep.  |  Aug.
                   |                                              |     |1999 2/|1999 2/|1999 2/|  1998  |  1999
 __________________|______________________________________________|_____|_______|_______|_______|________|___________
                   |                                              |     |
                   |Total mining industries...................... |12/84|  76.5    83.3    90.9     38.4      9.1
        10         | Metal mining................................ |12/84|  69.7    69.5    71.0     -1.9      2.2
        12         | Coal mining................................. |12/85|  87.8    86.1    84.0     -3.8     -2.4
        13         | Oil and gas extraction...................... |12/85|  76.3    85.9    96.4     56.0     12.2
        14         | Mining and quarrying of non-metallic         |     |
                   |  minerals, except fuels..................... |12/84| 133.8   134.4   133.8       .7      -.4
                   |                                              |     |
                   |Total manufacturing industries............... |12/84| 127.7   129.0   129.7      3.0       .5
        20         | Food and kindred products................... |12/84| 125.3   126.7   127.6       .4       .7
        21         | Tobacco manufactures........................ |12/84| 316.1   316.4   344.4     39.4      8.8
        22         | Textile mill products....................... |12/84| 116.4   115.7   115.9     -2.0       .2
        23         | Apparel and other finished products made     |     |
                   |  from fabrics and similar materials......... |12/84| 125.3   124.9   124.9      -.2    0
        24         | Lumber and wood products, except furniture.. |12/84| 161.9   166.6   162.9      3.6     -2.2
        25         | Furniture and fixtures...................... |12/84| 140.9   141.4   141.5      1.3       .1
        26         | Paper and allied products................... |12/84| 134.8   137.8   138.8      2.4       .7
        27         | Printing, publishing, and allied industries. |12/84| 177.2   177.7   177.7      2.0    0
        28         | Chemicals and allied products............... |12/84| 148.2   149.8   150.3      1.2       .3
        29         | Petroleum refining and related products..... |12/84|  75.4    85.8    89.9     40.0      4.8
        30         | Rubber and miscellaneous plastic products... |12/84| 121.6   122.6   122.7       .7       .1
        31         | Leather and leather products................ |12/84| 136.0   136.1   137.0      -.1       .7
        32         | Stone, clay, glass, and concrete products... |12/84| 132.5   133.1   133.3      2.4       .2
        33         | Primary metal industries.................... |12/84| 114.9   116.1   115.8     -3.6      -.3
        34         | Fabricated metal products, except machinery  |     |
                   |  and transportation equipment............... |12/84| 128.9   129.1   129.2       .2       .1
        35         | Machinery, except electrical................ |12/84| 117.5   117.2   117.1      -.4      -.1
        36         | Electrical and electronic machinery,         |     |
                   |  equipment, and supplies.................... |12/84| 109.7   109.5   109.6      -.5       .1
        37         | Transportation equipment.................... |12/84| 134.1   132.8   132.4       .5      -.3
        38         | Measuring and controlling instruments;       |     |
                   |  photographic, medical, optical goods;       |     |
                   |  watches, clocks............................ |12/84| 125.9   125.5   125.4      -.4      -.1
        39         | Miscellaneous manufacturing industries...... |12/85| 130.5   130.2   130.1       .2      -.1
                   |                                              |     |
                   |Services industries                           |     |
        40         | Railroad transportation..................... |12/96| 101.5   101.0   101.5      -.3       .5
        42         | Motor freight transportation and warehousing |06/93| 114.3   115.4   115.7      2.9       .3
        43         | United states postal service................ |06/89| 135.4   135.2   135.2      2.2    0
        44         | Water transportation........................ |12/92| 114.4   116.3   118.4      8.7      1.8
        45         | Transportation by air....................... |12/92| 130.0   131.5   132.2      5.6       .5
        46         | Pipe lines, except natural gas.............. |12/86|  98.5    98.7    98.6      -.6      -.1
        80         | Health services............................. |12/94| 109.5   109.8   109.9      1.8       .1
        81         | Legal services.............................. |12/96| 108.4   108.9   109.1      2.4       .2
 ____________________________________________________________________________________________________________________
 1/ Indexes in this table are derived from the net-output-weighted industry price indexes.  Because of
    differences in coverage and aggregation methodology, they will generally not match the movements of
    similarly-titled indexes which are derived from traditional commodity groupings.
 2/ The indexes for May 1999 have been recalculated to incorporate late reports and corrections by
    respondents.  All indexes are subject to revision 4 months after original publication.
 3/ Not available.
Table 5.  Producer price indexes by stage of processing, seasonally adjusted
(1982=100)
____________________________________________________________________________________________________________
                                                       |
                                                       |                      Index 1/   
                                                       |____________________________________________________
               Grouping                                |        |        |        |        |        |       
                                                       |  Apr.  |  May   |  June  |  July  |  Aug.  |  Sep. 
                                                       |  1999  |  1999  |  1999  |  1999  |  1999  |  1999 
_______________________________________________________|________|________|________|________|________|_______
      Finished goods...................................|  132.2    132.4    132.3    132.6    133.3   134.7
        Finished consumer goods........................|  130.9    131.2    131.2    131.6    132.5   134.2
          Finished consumer foods......................|  134.3    134.8    135.3    134.1    134.6   136.0
            Crude......................................|  130.3    128.7    126.5    120.4    120.0   121.4
            Processed..................................|  134.5    135.3    136.0    135.2    135.8   137.1
          Finished consumer goods, excluding foods.....|  129.3    129.4    129.2    130.3    131.4   133.3
            Nondurable goods less foods................|  126.2    126.3    126.2    127.9    129.5   131.7
            Durable goods..............................|  132.9    133.0    132.6    132.5    132.4   133.2
        Capital equipment..............................|  137.7    137.7    137.5    137.3    137.3   137.6
          Manufacturing industries.....................|  138.4    138.4    138.4    138.5    138.5   138.5
          Nonmanufacturing industries..................|  137.3    137.4    137.1    136.8    136.8   137.3
                                                       |
      Intermediate materials, supplies, and components.|  121.9    122.3    122.6    123.3    124.3   124.7
        Materials and components for manufacturing.....|  123.3    123.8    124.2    124.5    124.9   125.1
          Materials for food manufacturing.............|  118.9    119.9    120.4    118.6    120.1   121.8
          Materials for nondurable manufacturing.......|  122.7    123.4    124.2    124.7    125.4   125.9
          Materials for durable manufacturing..........|  123.1    124.2    125.0    126.0    126.3   125.8
          Components for manufacturing.................|  125.7    125.6    125.6    125.6    125.6   125.7
        Materials and components for construction......|  147.9    148.3    149.3    150.4    150.3   149.6
        Processed fuels and lubricants.................|   82.4     82.8     82.3     84.8     88.1    89.7
          Manufacturing industries ....................|   85.5     86.6     86.0     87.6     90.3    92.0
          Nonmanufacturing industries..................|   80.4     80.3     80.0     82.9     86.5    88.1
        Containers.....................................|  140.5    141.7    142.2    142.2    144.7   146.4
        Supplies.......................................|  133.8    133.7    133.9    134.1    134.4   134.5
          Manufacturing industries.....................|  140.3    140.3    140.4    140.6    141.1   141.0
          Nonmanufacturing industries..................|  131.0    130.9    131.2    131.3    131.6   131.7
            Feeds......................................|   88.4     87.6     88.2     87.4     88.1    88.6
            Other supplies.............................|  136.1    136.1    136.3    136.5    136.8   136.8
                                                       |
      Crude materials for further processing...........|   91.3     96.9     97.0     96.8    101.3   106.5
        Foodstuffs and feedstuffs......................|   96.3     98.7     99.2     94.4     98.0    99.3
        Nonfood materials..............................|   84.6     92.2     92.0     94.9     99.9   107.5
          Nonfood materials except fuel 2/.............|   83.0     87.3     88.5     93.0     96.3   102.9
            Manufacturing 2/...........................|   75.4     79.4     80.6     84.8     87.9    94.2
            Construction...............................|  190.9    193.3    195.3    196.3    199.6   198.0
          Crude fuel 3/................................|   80.0     91.6     89.4     90.0     96.9   105.3
            Manufacturing industries...................|   77.5     90.2     87.4     89.3     96.4   106.5
            Nonmanufacturing industries................|   81.7     93.3     91.2     91.6     98.6   107.0
                                                       |
                     Special groupings                 |
                                                       |
      Finished goods, excluding foods..................|  131.5    131.6    131.4    132.1    132.8   134.2
      Intermediate materials less foods and feeds......|  122.6    123.0    123.3    124.1    125.0   125.4
      Intermediate foods and feeds.....................|  109.6    109.9    110.5    109.0    110.2   111.6
      Crude materials less agricultural products 2/....|   84.2     92.1     92.1     95.3    100.3   108.2
                                                       |
      Finished energy goods............................|   76.9     77.1     76.6     79.2     82.1    83.9
      Finished goods less energy.......................|  142.5    142.7    142.8    142.5    142.5   143.7
      Finished consumer goods less energy..............|  144.5    144.7    144.9    144.5    144.6   146.1
                                                       |
      Finished goods less foods and energy.............|  145.7    145.8    145.6    145.6    145.5   146.6
      Finished consumer goods less foods and energy....|  151.0    151.1    151.0    151.2    151.0   152.6
      Consumer nondurable goods less foods and energy..|  165.1    165.2    165.4    165.8    165.5   167.8  
                                                       |
      Intermediate energy goods........................|   82.1     82.5     82.1     84.5     87.7    89.3
      Intermediate materials less energy...............|  130.7    131.1    131.5    131.9    132.3   132.4
      Intermediate materials less foods and energy.....|  132.1    132.5    132.9    133.4    133.7   133.8
                                                       |
      Crude energy materials 2/........................|   68.1     77.1     76.7     79.5     85.2    94.1
      Crude materials less energy......................|  104.3    106.8    107.3    104.7    107.9   109.7
      Crude nonfood materials less energy 3/...........|  128.1    130.8    131.5    134.5    136.9   139.9
_____________________________________________________________________________________________________________

  1/  All seasonally adjusted indexes are subject to change up to 5 years after original publication due
      to the recalculation of seasonal factors each January.  The indexes for May 1999 have been
      recalculated to incorporate late reports and corrections by respondents.  
  2/  Includes crude petroleum.
  3/  Excludes crude petroleum.
Technical Notes





Brief Explanation of
Producer Price Indexes

     Producer price indexes (PPI) measure average changes in
prices received by domestic producers of commodities in all
stages of processing. Most of the information used in
calculating the indexes is obtained through the systematic
sampling of nearly every industry in the manufacturing and
mining sectors of the economy. The PPI program also includes
some information from other sectors--agriculture, fishing,
forestry, services, and gas and electricity. Because
producer price indexes are designed to measure only the
change in prices received for the output of domestic
industries, imports are not included. The sample currently
contains about 3,200 commodities and 80,000 quotations per
month.
     There are three primary systems of indexes within the
PPI program: (1) Stage of processing indexes; (2) commodity
indexes; and (3) indexes for the net output of industries
and their products. The stage-of-processing structure
(tables 1 and 2) organizes products by class of buyer and
degree of processing. The commodity structure (tables 2 and
3) organizes products by similarity of end-use or material
composition. The entire output of various industries is
sampled to derive price indexes for the net output of
industries and their products (table 4).
     Within the stage-of-processing system, finished goods
are commodities that will not undergo further processing and
are ready for sale to the final demand user, either an
individual consumer or business firm. Consumer foods include
unprocessed foods such as eggs and fresh vegetables, as well
as processed foods such as bakery products and meats. Other
finished consumer goods include durable goods such as
automobiles, household furniture, and appliances, and
nondurable goods such as apparel and home heating oil.
Capital equipment includes producer durable goods such as
heavy motor trucks, tractors, and machine tools.
     The stage-of-processing category for intermediate
materials, supplies, and components consists partly of
commodities that have been processed but require further
processing. Examples of such semifinished goods include
flour, cotton yarn, steel mill products, and lumber. The
intermediate goods category also encompasses nondurable,
physically complete items purchased by business firms as
inputs for their operations. Examples include diesel fuel,
belts and belting, paper boxes, and fertilizers.
     Crude materials for further processing are products
entering the market for the first time that have not been
manufactured or fabricated and that are not sold directly to
consumers. Crude foodstuffs and feedstuffs include items
such as grains and livestock. Examples of crude nonfood
materials include raw cotton, crude petroleum, coal, hides
and skins, and iron and steel scrap.
     Producer price indexes for the net output of industries
and their products are grouped according to the Standard
Industrial Classification (SIC) and the Census product code
extension of the SIC. Industry price indexes are compatible
with other economic time series organized by SIC codes, such
as data on employment, wages, and productivity. Table 4
lists indexes for the net output of major mining and
manufacturing industry groups at the 2-digit level.
     Producer price indexes are based on selling prices
reported by establishments of all sizes selected by
probability sampling, with the probability of selection
proportionate to size. Individual items and transaction
terms from these firms are also chosen by probability
proportionate to size. BLS strongly encourages cooperating
companies to supply actual transaction prices at the time of
shipment to minimize the use of list prices. Prices are
normally reported by mail questionnaire for the Tuesday of
the week containing the 13th.
     Price data are provided on a voluntary and confidential
basis; no one but sworn BLS employees are allowed access to
individual company price reports. All producer price indexes
are routinely subject to revision once, 4 months after
original publication, to reflect the availability of late
reports and corrections by respondents.
     Net output values of shipments are used as weights for
industry indexes. Net output values refer to the value of
shipments from establishments in one industry to
establishments classified in another industry. However,
weights for commodity price indexes are based on gross
shipment values, including shipment values between
establishments within the same industry. As a result, broad
commodity grouping indexes such as the all commodities index
are affected by the multiple counting of price change at
successive stages of processing, which can lead to
exaggerated or misleading signals about inflation. Stage-of-
processing indexes partially correct this defect, but
industry indexes consistently correct for this at all levels
of aggregation. Therefore, industry and stage-of-processing
indexes are more appropriate than broad commodity groupings
for economic analysis of general price trends.
     Weights for most traditional commodity groupings of the
PPI, as well as all indexes (such as stage-of-processing
indexes) calculated from traditional commodity groupings,
currently reflect 1987 values of shipments as reported in
the Census of Manufactures and other sources. From January
1987 through December 1991, PPI weights were derived from
1982 shipment values. Industry indexes shown in table 4 are
also now calculated with 1987 net output weights.
     Effective with publication of January 1988 data, many
important PPI series (including stage-of-processing
groupings and most commodity groups and individual items)
were placed on a new reference base, 1982=100, to coincide
with the reference year of the shipment weights. From 1971
through 1987, the standard reference base for most PPI
series was 1967=100. Except for rounding differences, the
shift to the new reference base did not alter any changes to
previously published percent changes for affected PPI
series. (See "Calculating Index Changes," below.) The new
reference base is not used for indexes with a base later
than December 1981, nor for indexes for the net output of
industries and their products.
     For further information on the underlying concepts and
methodology of the Producer Price Index, see chapter 16,
"Producer Prices," in BLS Handbook of Methods (September
1992), Bulletin 2414. Reprints are available from the Bureau
of Labor Statistics on request.

Calculating Index Changes

     Movements of price indexes from one month to another
are usually expressed as percent changes rather than as
changes in index points because index point chances are
affected by the level of the index in relation to its base
period, while percent changes are not. The box shows the
computation of index point and percent changes.
     Percent changes for 3-month and 6-month periods can be
expressed as annual rates that are computed according to the
standard formula for compound growth rates. These data
indicate what the percent change would be if the rate for a
given 3- or 6-month span were maintained for a 12-month
period.





                Index Point Change

     Finished Goods Price Index    107.5
     Less previous index           104.0
     Equals index point change       3.5

          Index Percent Change

     Index point change              3.5
     Divided by the previous index 104.0
     Equals                          0.034
     Result multiplied by 100        0.034 x 100
     Equals percent change           3.4

     Each index measures price changes from a reference
period which equals 100.0 (1982 or some later month). An
increase of 5.5 percent from the reference period in the
Finished Goods Price Index, for example, is shown as 105.5.
This change can also be expressed in dollars as follows:
"Prices received by domestic producers of a systematic
sample of finished goods have risen from $100 in 1982 to
$105.50 to-day." Likewise, a current index of 90.0 would
indicate that prices received by producers of finished goods
today are 10 percent lower than they were in 1982.

Seasonally Adjusted
and Unadjusted Data

     Because price data are used for different purposes by
different groups, the Bureau of Labor Statistics publishes
seasonally adjusted as well as unadjusted changes each
month.
     Seasonally adjusted data are preferred for analyzing
general price trends in the economy because they eliminate
the effect of changes that normally occur at about the same
time and in about the same magnitude every year-such as
price movements resulting from normal weather patterns,
regular production and marketing cycles, model changeovers,
seasonal discounts, and holidays. For these reasons,
seasonally adjusted data more clearly reveal underlying
cyclical trends.
     Unadjusted data are of primary interest to users who
need information which can be related to actual dollar
values of transactions. Individuals requiring this
information include marketing specialists, purchasing
agents, budget and cost analysts, contract specialists, and
commodity traders. It is the unadjusted data that are
generally cited in escalating long-term contracts such as
purchasing agreements or real estate leases. (See Escalation
and Producer Price Indexes: A Guide for Contracting Parties,
BLS Report 807, September 1991, available on request from
BLS.)
     For more information, see "Appendix A: Seasonal
Adjustment Methodology at BLS," in the BLS Handbook of
Methods (September 1992), Bulletin 2414.