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http://stats.bls.gov/ppihome.htm   AUGUST 13, 1997
                                     
                    Producer Price Indexes -- July 1997

     The Producer Price Index for Finished Goods decreased 0.1 percent in
July, seasonally adjusted, the Bureau of Labor Statistics of the U. S.
Department of Labor reported today.  This followed drops of 0.1 percent in
June and 0.3 percent in May and is the seventh consecutive monthly decline
in the index.  Prices received by domestic producers of intermediate goods
decreased in July after showing no change in the previous month.  The Crude
Goods Price Index fell 0.1 percent after declining 3.3 percent in June.
(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   mediateCrude
                              and     months
Month  Total  Foods  Energy energy      ago      goods goods
                                     (unadj.)
 1996                                                     
 July     0.0    0.1    0.4     0.0         2.6   -0.2    2.2
 Aug.     0.3    0.7    0.6     0.1         3.0    0.2    0.6
Sept.     0.3    0.4    0.7     0.1         3.0    0.4   -2.6
 Oct.     0.4    0.8    1.7    -0.1         3.1   -0.2   -0.7
 Nov.     0.2      0    0.9       0         3.0   -0.2    2.7
 Dec.     0.5   -0.2    3.3     0.1         2.8    0.5    6.2
                                                             
 1997                                                        
 Jan.    -0.3   -1.0   -0.2       0         2.5    0.2    3.8
 Feb.    -0.3   -0.4   -1.2    -0.1         2.2   -0.2   -8.3
 Mar.    -0.2   r0.8  r-3.1    r0.1        r1.5   -0.4  r-7.7
 Apr.   r-0.5   -0.4  r-2.7    -0.1         0.8   -0.3   r1.6
 May     -0.3    0.4   -2.1    -0.3         0.3   -0.2    1.3
 June    -0.1   -0.9    0.7     0.1        -0.1      0   -3.3
 July    -0.1   -0.2    0.1    -0.1        -0.2   -0.2   -0.1
r=revised.  Some of the figures shown above and elsewhere in this release
may differ from those previously
reported because data for March 1997 have been recalculated to incorporate
the availability of late reports
and corrections by respondents.
                                    -2-
                                     
     Among finished goods in July, price decreases for finished consumer
goods other than foods and energy, finished consumer foods, and capital
equipment outweighed increases for finished energy goods.  The index for
finished goods other than foods and energy turned down 0.1 percent
following a 0.1-percent rise in June.

     Before seasonal adjustment, the Producer Price Index for Finished
Goods decreased 0.2 percent in July to 131.3 (1982=100).  From July 1996 to
July 1997, the Finished Goods Price Index fell 0.2 percent.  During this
same period, consumer food prices moved up 0.1 percent, prices for finished
energy goods fell 1.4 percent, and prices for finished goods other than
foods and energy showed no change.  Prices received by domestic producers
of intermediate goods moved down 0.3 percent during the 12 months ended in
June 1997, and crude material prices fell 7.3 percent over the same period.

Finished goods

     The index for consumer goods other than foods and energy declined 0.1
percent after rising 0.1 percent in June.  Prices for passenger cars turned
down 1.6 percent after rising 0.3 percent in the prior month.  The indexes
for alcoholic beverages and floor coverings also fell after rising a month
ago.  Prices for sanitary paper products showed no change after rising in
June.  By contrast, the index for book publishing rose 0.1 percent
following a 1.1-percent decline in the prior month.  Prices for men's and
boys' apparel also turned up after falling in June.  The index for women's
apparel rose more than a month ago.

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                        Change in
                            intermedi                          crude
                               ate
                     Exclud   goods                  Excludi   goods
                      ing      from                    ng
                     foods  12 months         Energy  foods   from 12
                      and      ago                     and   months ago
Month  Foods  Energy energy  (unadj.)   Foods (unadj energy   (unadj.)
                                                .)
 1996                                                             
 July     0.4    0.0   -0.3       -0.1    1.7    5.4   -1.6     13.2
 Aug.     0.3    0.8    0.1        0.1   -0.6    2.4    0.5     15.4
Sept.     0.8    1.1    0.2        0.6   -3.5   -3.3    0.5     10.1
 Oct.    -2.0    1.3   -0.2        0.5   -3.1    2.1   -0.1     9.4
 Nov.    -3.2   -0.2    0.1        0.5   -2.5   11.1   -0.2     10.6
 Dec.    -0.6    2.9    0.1        0.7   -2.7   19.3      0     14.7
                                                                  
 1997                                                             
 Jan.    -0.5    0.6    0.1        0.9   -1.2    8.9    2.3     16.1
 Feb.    -0.1   -0.8    0.1        1.1   -1.4  -17.9    1.1     4.5
 Mar.    r1.8  r-3.8      0        0.6   r2.0 r-21.3   r0.3    r-2.2
 Apr.    r0.6  r-2.4      0       -0.1   r3.2   r2.1  r-2.5     -4.8
 May      0.5   -1.9      0       -0.7   -0.3    3.4    1.2     -4.6
 June    -1.4    0.6    0.1       -0.4   -5.4   -2.9    0.4     -5.4
 July    -1.2   -1.1      0       -0.3    0.3   -0.4   -0.5     -7.3
r=revised.  Some of the figures shown above and elsewhere in this release
may differ from those previously reported because
data for March 1997 have been recalculated to incorporate the availability
of late reports and corrections by respondents.
                                    -3-
                                     
     Prices for finished consumer foods fell 0.2 percent in July following
a 0.9-percent decline in the prior month.  The index for eggs for fresh use
turned up 21.7 percent after decreasing 8.6 percent in the previous month.
Prices for pork, processed young chickens, and for fresh and dry vegetables
also rose after falling a month earlier.  The index for fresh fruits and
melons declined less than in June.  On the other hand, prices for roasted
coffee decreased 0.4 percent following a 3.8-percent gain a month ago.  The
index for processed turkeys also turned down after rising in the prior
month.  Prices for dairy products decreased more than in June.

     The index for capital equipment fell 0.1 percent after rising 0.1
percent in the previous month.  Prices for light motor trucks dropped 0.8
percent following a 0.3-percent decline in June.  The indexes for
electronic computers and railroad equipment fell after rising in the prior
month.  Conversely, the index for civilian aircraft increased 0.4 percent
following a 0.1 percent gain in June.  Prices for x-ray equipment and for
transformers and power regulators turned up after falling in the prior
month.

     The Producer Price Index for finished energy goods rose 0.1 percent in
July following a 0.7-percent gain in June.  Prices for unleaded regular
gasoline advanced 1.7 percent after increasing 3.5 percent a month ago.
The index for residential natural gas also rose less than in the prior
month.  Prices for residential electric power remained unchanged after
increasing 0.2 percent in the previous month.  By contrast, the index for
home heating oil fell 3.4 percent after declining 5.8 percent in June.
Prices for finished lubricants rose more than a month ago.

Intermediate goods

     The Producer Price Index for Intermediate Materials, Supplies, and
Components declined 0.2 percent in July, seasonally adjusted, after showing
no change in June.  The indexes for intermediate energy goods and durable
manufacturing materials decreased after increasing a month earlier.  By
contrast, prices for nondurable manufacturing materials rose after showing
no change in the prior month.  The index for construction materials rose
after falling in the previous month.  Prices for intermediate foods and
feeds fell less than a month ago.  Excluding foods and energy, the
intermediate materials index was unchanged for July after rising slightly
in June.  (See table B.)

     The index for intermediate energy goods declined 1.1 percent following
a 0.6-percent advance in the previous month.  Prices for commercial
electric power decreased 1.8 percent after a 1.2-percent increase in June.
The indexes for jet fuels, residual fuels, and liquefied petroleum gas
turned down after rising a month ago.  Prices for No. 2 diesel fuel fell
more than in the prior month.  By contrast, the index for industrial
electric power advanced 0.7 percent following a 0.6-percent decline in
June.  Prices for coke oven products increased more than last month.  The
index for natural gas to electric utilities turned up after falling a month
earlier.

     The index for durable manufacturing materials declined 0.6 percent
following a 0.3-percent advance in the previous month.  Prices for copper
cathode and refined copper decreased 9.7 percent after a 4.0-percent
increase in June.  The indexes for copper and brass mill shapes and
aluminum mill shapes fell after rising in the prior month.  The index for
hot rolled sheet and strip moved down after showing no change a month ago.
Prices for plywood rose less than a month earlier.  By contrast, the index
for semifinished steel mill products advanced 2.6 percent after showing no
change in June.  Prices for hot rolled bars, plates, and structural shapes
rose more than in the previous month.  The index for cement turned up after
falling a month ago.
                                    -4-
                                     
     The index for nondurable manufacturing materials advanced 0.2 percent
after showing no change in the previous month.  Prices for basic organic
chemicals increased 0.8 percent following a 0.6-percent decrease in June.
The indexes for paper, fertilizer materials, and woodpulp rose more than a
month ago.  Prices for medicinal and botanical chemicals turned up after
falling in the prior month.  By contrast, the index for paperboard advanced
0.2 percent following a 0.7-percent advance in June.  Prices for inedible
fats and oils and plastic resins and materials decreased after increasing a
month ago.  The index for basic inorganic chemicals rose less than in the
previous month.

     The index for construction materials advanced 0.1 percent following a
0.1-percent decline in the previous month.  Prices for softwood lumber
decreased 0.1 percent after a 2.7-percent decrease in June.  The index for
plastic construction materials showed no change after falling a month ago.
The indexes for fabricated structural metal products and fabricated ferrous
wire products rose after showing no change a month earlier.  Prices for
millwork, cement, and air conditioning and refrigeration equipment advanced
after declining in the prior month.  By contrast, the index for plywood
increased 0.1 percent following a 2.7-percent increase in June.  Prices for
nonferrous wire and cable and asphalt felts and coatings turned down after
rising a month earlier.  The index for gypsum products fell more than in
the prior month.

     The index for intermediate foods and feeds declined 1.2 percent
following a 1.4-percent decline in the previous month.  Prices for pork
increased 1.2 percent after a 3.4-percent decrease in June.  The indexes
for prepared animal feeds and fluid milk products fell less than a month
ago.  By contrast, the index for refined sugar declined 2.9 percent
following a 0.1-percent advance in June.  Prices for flour fell more than
in the previous month.  The index for butter decreased after increasing a
month ago.

Crude Goods

     The Producer Price Index for Crude Materials for Further Processing
decreased 0.1 percent, seasonally adjusted, following a 3.3-percent
decrease in June.  Prices for crude foodstuffs and feedstuffs rose after
falling in the prior month.  The index for crude energy materials fell less
than a month ago.  Prices for basic industrial materials fell after rising
in June.  (See table B.)
     
     Prices for crude foodstuffs and feedstuffs gained 0.3 percent
following a 5.4-percent decrease in June.  Prices for slaughter cattle rose
2.8 percent following a 6.9-percent decline in the prior month.  The
indexes for slaughter hogs and corn also rose after falling in the previous
month.  Prices for slaughter broilers and fryers rose more than in June.
By contrast, prices for wheat fell 10.4 percent after decreasing 4.4
percent a month ago.  The index for fluid milk fell more than in June.
Prices for fresh vegetables, except potatoes, rose less than in the prior
month.
     
     The index for crude energy materials dropped 0.4 percent in July, led
by declines of 2.4-percent for natural gas and 5.0 percent for coal.  The
July decrease in the crude energy materials index follows a 2.9-percent
decline in the prior month.  This slowing rate of decline was led by an
upturn in prices for crude petroleum.  By contrast, the indexes for coal
and natural gas turned down after rising in June.
     
     The index for crude nonfood materials less energy fell 0.5 percent
following a 0.4-percent increase in June.  Prices for copper ores turned
down 7.6 percent after rising 11.9 percent in the prior month.  The index
for copper base scrap also decreased after increasing in June.  Prices for
gold ores fell more than in the previous month. By contrast, raw cotton
moved up 8.4 percent after rising 0.7 percent in the prior month.  Prices
for iron and steel scrap also increased more than in the previous month.
The index for softwood logs, bolts, and timber turned up after falling a
month ago.
                                    -5-
                                     
Net output price indexes for mining, manufacturing, and other industries

Mining.  The Producer Price Index for the net output of total domestic
mining industries fell 0.3 percent in July following a decline of 1.8
percent in June.  (Net output price indexes are not seasonally adjusted.).
In July, prices for the oil and gas extraction industry group increased 0.5
percent following a 3.0-percent decrease in the previous month.  By
contrast, the index for the nonmetallic minerals mining industry group
increased 0.2 percent after a 0.4-percent rise a month ago.  Prices for the
coal mining industry group turned down 2.8 percent following a 1.3-percent
gain last month.  Similarly, the index for the metal mining industry group
fell 4.8 percent after increasing 3.4 percent in the prior month.  In July,
the Producer Price Index for total mining industries stood at 79.5
(December 1984=100), 1.9 percent lower than a year earlier.

Manufacturing.  The Producer Price Index for the net output of total
domestic manufacturing industries fell 0.2 percent in July, following a
similar decrease in June.  In July, price declines for the industry groups
for petroleum refining and related products, transportation equipment,
primary metal industries, textile mill products, and non-electrical
machinery offset price increases for measuring and controlling instruments,
chemicals and allied products, furniture and fixtures, lumber and wood
products, and for the rubber and miscellaneous plastic products industry
groups.  In July, the Producer Price Index for the net output of total
manufacturing industries stood at 127.0 (December 1984=100), 0.1 percent
below its level a year ago.

Other.  Among other industries in July, the indexes for hotels and motels,
scheduled air transportation, travel agencies, and for offices and clinics
of doctors of medicine turned down after rising in June.  Prices for scrap
and waste materials collection, crude petroleum pipelines, and for general
warehousing and storage decreased after showing no change a month ago.  The
indexes for real estate agents and managers, tugging and towing services,
non-local trucking, passenger car rental (without drivers), cable and other
pay TV services, railroad line-haul operations, building cleaning and
maintenance services, home health care services, and for architectural
design, analysis, and consulting services rose less than in June.  Prices
for radio broadcasting, truck rental and leasing, and water transportation
of freight fell more than a month earlier.  The indexes for legal services,
help supply services, farm product warehousing and storage, and for
refrigerated warehousing and storage showed no change in July after
increasing in the previous month.

     By contrast, the indexes for freight transportation arrangement,
airports and airport services, non-psychiatric specialty hospitals,
telephone communications (except radiotelephone), and local trucking
without storage turned up in July after falling in June.  Prices for
psychiatric hospitals, employment agencies, and air courier services showed
no change after declining a month ago.  The indexes for marine cargo
handling, refined petroleum pipelines, freight transportation on the Great
Lakes-St. Lawrence Seaway, nonscheduled air transportation, general medical
and surgical hospitals, and for engineering design, analysis, and
consulting services increased after showing no change in the prior month.
Prices for advertising agencies, skilled and intermediate care facilities,
medical laboratories, and for accounting, auditing, and bookkeeping
services rose more than last month.  The indexes for operators and lessors
of nonresidential buildings and for deep sea domestic transportation of
freight fell less than in June.

                                   *****
             Producer Price Index data for August 1997 will be
          released on Friday, September 12, at 8:30 a.m. (E.D.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.
                                    -6-
                                     
Resampling of Industries

     Effective with this release, another set of resampled industries is
introduced.  Two (2) mining industries, twenty-five (25) manufacturing
industries, and one (1) service industry were resampled this month.
Indexes for these industries appear in table 5 of the PPI Detailed Report.

     Under the resampling procedure, the sample for an industry is updated
to reflect more accurately the current structure, membership, technology,
or product mix.  The Bureau of Labor Statistics published the first results
of this systematic process in July 1986.  Subsequent efforts have been
completed at 6-month intervals.

Standard
Industrial
Classification
(SIC) Code               Industry

1459           Clay and related materials, not elsewhere classified
1479           Chemical and fertilizer mineral mining, not elsewhere
classified
2037           Frozen fruits and vegetables
2091           Canned and cured seafoods
2431           Millwork
2514           Metal household furniture
2541           Wood partitions and fixtures
2678           Stationery products
2741           Miscellaneous publishing
2891           Adhesives and sealants
2899           Chemicals and chemical preparations, not elsewhere
classified
3053           Gaskets, packing, and sealing devices
3271           Concrete block and brick
3273           Ready-mixed concrete
3312           Blast furnaces and steel mills
3315           Steel wire and related products - made from purchased
materials
3316           Cold finishing of steel shapes - made from purchased
materials
3317           Steel pipe and tubes - made from purchased materials
3341           Secondary nonferrous metals
3442           Metal doors, sash, and trim
3471           Metal plating and polishing
3479           Metal coating and allied services
3585           Refrigeration and heating equipment
3599           Machinery, except electrical, not elsewhere classified
3629           Electrical industrial apparatus, not elsewhere classified
3843           Dental equipment and supplies
3851           Ophthalmic goods
4424           Domestic deep sea transportation of freight

     For information on specific additions, deletions, and recodes of
indexes that are effective this month, see tables of sample changes in the
July 1997 issue of the Producer Price Index Detailed Report.
 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|                       |July 1997 from:|
                                                  |          |_______________________|_______________|_______________________________
                                                  |   Dec.   |       |       |       |       |       |       |         |
                                                  |           Mar.   |June   |July   |  July | June  |Apr. to| May  to |June  to
                                                  |   1996 1/|1997 2/|1997 2/|1997 2/|  1996 | 1997  |   May |   June  |  July
 _________________________________________________|__________|_______|_______|_______|_______|_______|_______|_________|____________
                                                  |
 Finished goods...................................|  100.000   132.1   131.6   131.3    -0.2   -0.2     -0.3     -0.1    -0.1
   Finished consumer goods........................|   76.423   130.4   130.1   129.7     -.2    -.3      -.4      0       -.2
     Finished consumer foods......................|   23.644   135.2   134.0   134.0      .1    0         .4      -.9     -.2
       Crude......................................|    1.639   140.4   115.5   115.2    -6.9    -.3      3.1     -6.5    -1.7
       Processed..................................|   22.005   134.8   135.3   135.3      .5    0         .3      -.5     -.1
     Finished consumer goods, excluding foods.....|   52.779   128.2   128.2   127.7     -.2    -.4      -.8       .3     -.1
       Nondurable goods less foods................|   36.392   123.8   124.4   124.1      .1    -.2      -.8       .5      .1
       Durable goods..............................|   16.387   135.0   133.5   132.5    -1.0    -.7      -.6      0       -.5
   Capital equipment..............................|   23.577   138.8   138.1   137.9     -.1    -.1      -.2       .1     -.1
     Manufacturing industries.....................|    6.028   137.9   137.6   137.5      .3    -.1      -.1       .1     0
     Nonmanufacturing industries..................|   17.549   139.0   138.1   137.9     -.4    -.1      -.3       .1     -.1
                                                  |
 Intermediate materials, supplies, and components.|  100.000   125.6   125.7   125.5     -.3    -.2      -.2      0       -.2
   Materials and components for manufacturing.....|   49.031   128.6   128.3   128.3     0      0        0         .1     -.1
     Materials for food manufacturing.............|    3.318   124.1   122.8   122.3    -4.8    -.4      -.3      -.9     -.6
     Materials for nondurable manufacturing.......|   15.610   129.4   129.1   129.4     0       .2       .2      0        .2
     Materials for durable manufacturing..........|   10.965   133.4   133.8   133.1     1.8    -.5       .2       .3     -.6
     Components for manufacturing.................|   19.138   126.7   126.4   126.5     -.2     .1      -.2      0        .1
   Materials and components for construction......|   12.691   146.2   147.1   147.1     2.4    0         .4      -.1      .1
   Processed fuels and lubricants.................|   13.665    88.7    89.6    88.5    -2.9   -1.2     -2.1       .8    -1.1
     Manufacturing industries ....................|    5.415    91.0    91.4    91.2    -2.4    -.2     -2.0      0       -.1
     Nonmanufacturing industries..................|    8.250    87.2    88.5    86.8    -3.1   -1.9     -2.1      1.2    -1.7
   Containers.....................................|    3.527   136.0   134.2   133.9    -4.1    -.2       .1      -.4     -.3
   Supplies.......................................|   21.086   135.8   135.9   135.9     -.4    0         .1      -.2     0
     Manufacturing industries.....................|    7.535   138.8   138.9   139.3      .3     .3      0        -.1      .3
     Nonmanufacturing industries..................|   13.551   134.3   134.4   134.1     -.7    -.2       .2      -.3     -.1
       Feeds......................................|    1.607   132.9   133.6   130.7    -5.6   -2.2      2.0     -2.3    -2.4
       Other supplies.............................|   11.944   134.5   134.5   134.6     0       .1      -.1       .1      .1
                                                  |
 Crude materials for further processing...........|  100.000   107.6   107.2   107.2    -7.3    0        1.3     -3.3     -.1
   Foodstuffs and feedstuffs......................|   38.004   114.1   111.5   112.1   -14.4     .5      -.3     -5.4      .3
   Nonfood materials..............................|   61.996    99.4   100.5   100.0    -1.2    -.5      2.5     -1.6     -.5
     Nonfood materials except fuel 3/.............|   36.095   104.0   101.3   101.4    -1.2     .1      1.4     -3.4      .2
       Manufacturing 3/...........................|   32.588    95.5    92.6    92.7    -1.9     .1      1.6     -4.0      .2
       Construction...............................|    3.507   202.0   202.6   203.1     5.2     .2       .6      0        .2
     Crude fuel 4/................................|   25.901    82.1    89.7    88.2    -1.1   -1.7      4.9      2.3    -1.7
       Manufacturing industries...................|    5.258    81.4    88.0    86.8     -.9   -1.4      4.5      1.9    -1.4
       Nonmanufacturing industries................|   20.643    83.3    91.3    89.7    -1.2   -1.8      5.1      2.4    -1.8
                                                  |
                Special groupings                 |
                                                  |
 Finished goods, excluding foods..................|5/ 76.356   131.1   130.9   130.4     -.3    -.4      -.5       .2     -.1
 Intermediate materials less foods and feeds......|6/ 95.065   125.6   125.7   125.5     -.1    -.2      -.2       .2     -.2
 Intermediate foods and feeds.....................|6/  4.935   127.2   126.5   125.2    -5.1   -1.0       .5     -1.4    -1.2
 Crude materials less agricultural products 3/ 7/.|8/ 59.898    98.6    99.8    99.3    -1.3    -.5      2.6     -1.7     -.7
                                                  |
 Finished energy goods............................|5/ 14.720    83.0    83.6    83.0    -1.4    -.7     -2.1       .7      .1
 Finished goods less energy.......................|5/ 85.280   140.7   139.9   139.7      .1    -.1      -.1      -.1     -.1
 Finished consumer goods less energy..............|5/ 61.703   141.4   140.6   140.4      .1    -.1      0        -.2     -.2
                                                  |
 Finished goods less foods and energy.............|5/ 61.636   142.8   142.3   141.9     0      -.3      -.3       .1     -.1
 Finished consumer goods less foods and energy....|5/ 38.059   145.3   144.9   144.5      .1    -.3      -.3       .1     -.1
 Consumer nondurable goods less foods and energy..|5/ 21.672   152.7   153.2   153.2      .9    0        -.1       .3     0
                                                  |
 Intermediate energy goods........................|6/ 13.796    88.5    89.3    88.2    -3.0   -1.2     -1.9       .6    -1.1
 Intermediate materials less energy...............|6/ 86.204   133.8   133.7   133.7      .1    0         .1      -.1     0
 Intermediate materials less foods and energy.....|6/ 81.269   134.2   134.2   134.2      .4    0        0         .1     0
                                                  |
 Crude energy materials 3/........................|8/ 42.427    77.1    79.0    78.7    -3.8    -.4      3.4     -2.9     -.4
 Crude materials less energy......................|8/ 57.573   125.7   123.4   123.5    -9.1     .1       .2     -3.4     0
 Crude nonfood materials less energy 4/...........|8/ 19.569   159.6   158.1   157.0     3.0    -.7      1.2       .4     -.5
                                                  |
 ____________________________________________________________________________________________________________________________________
 
   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 March 1997 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 |                                                       |                       |July 1997 from:|
    code    |                      Grouping                         |_______________________|_______________|________________________
            |                                                       |       |       |       |       |       |       |       |
            |                                                       |Mar.   |June   |July   | July  | June  |Apr. to| May to|June to
            |                                                       |1997 1/|1997 1/|1997 1/| 1996  | 1997  |   May |  June |  July
 ___________|_______________________________________________________|_______|_______|_______|_______|_______|_______|_______|________
            |                                                       |
            |FINISHED GOODS.........................................| 132.1   131.6   131.3    -0.2   -0.2     -0.3    -0.1    -0.1
            | FINISHED CONSUMER GOODS...............................| 130.4   130.1   129.7     -.2    -.3      -.4     0       -.2
            |  FINISHED CONSUMER FOODS..............................| 135.2   134.0   134.0      .1    0         .4     -.9     -.2
            |                                                       |
 01-11      |   Fresh fruits and melons 2/..........................| 108.1    91.1    82.3   -14.1   -9.7      7.9   -15.6    -9.7
 01-13      |   Fresh and dry vegetables 2/.........................| 139.7   108.8   112.1   -15.3    3.0       .1    -2.2     3.0
 01-71-07   |   Eggs for fresh use (Dec. 1991=100) 2/...............|  98.8    79.4    96.6     1.6   21.7      -.8    -8.6    21.7
 02-11      |   Bakery products 2/..................................| 173.0   173.5   173.9     2.2     .2       .3     0        .2
 02-13      |   Milled rice 2/......................................| 128.3   127.5   126.5    -4.7    -.8      -.7     -.1     -.8
 02-14-02   |   Pasta products (June 1985=100) 2/...................| 126.8   126.7   123.4    -2.4   -2.6       .1      .2    -2.6
 02-21-01   |   Beef and veal.......................................| 105.2   102.1   100.9     1.8   -1.2      1.8    -1.5    -1.3
 02-21-04   |   Pork................................................| 119.5   128.7   130.9     4.4    1.7      3.2    -3.4     1.2
 02-22-03   |   Processed young chickens............................| 118.9   117.5   119.9    -5.0    2.0     -1.5    -2.4     2.2
 02-22-06   |   Processed turkeys 2/................................|  98.6   104.1   102.9    -4.2   -1.2      2.2      .3    -1.2
 02-23      |   Finfish and shellfish...............................| 187.1   173.1   168.7     3.0   -2.5      7.9    -3.2    -2.5
 02-3       |   Dairy products......................................| 128.4   125.3   124.5    -7.5    -.6     -1.5    -1.1    -1.3
 02-4       |   Processed fruits and vegetables 2/..................| 127.3   126.3   126.6    -1.2     .2      -.3     -.4      .2
 02-55      |   Confectionery end products 2/.......................| 168.4   168.4   168.7      .8     .2       .2     -.3      .2
 02-62      |   Soft drinks.........................................| 133.5   133.4   133.2      .1    -.1      -.4     -.1      .2
 02-63-01   |   Roasted coffee 2/...................................| 142.9   166.5   165.9    30.3    -.4      5.8     3.8     -.4
 02-76      |   Shortening and cooking oils 2/......................| 137.2   136.6   141.4     1.4    3.5      1.4     -.4     3.5
            |                                                       |
            |  FINISHED CONSUMER GOODS EXCLUDING FOODS..............| 128.2   128.2   127.7     -.2    -.4      -.8      .3     -.1
            |                                                       |
 02-61      |   Alcoholic beverages.................................| 135.8   135.8   135.4     1.7    -.3      -.2      .5     -.1
 03-81-01   |   Women's apparel 2/..................................| 120.2   119.9   120.2     0       .3       .2      .1      .3
 03-81-02   |   Men's and boys' apparel.............................| 132.7   132.4   132.7      .2     .2       .2     -.1      .2
 03-81-03   |   Girls', children's, and infants' apparel 2/.........| 124.0   124.4   124.3     2.1    -.1      -.1      .1     -.1
 03-82      |   Textile housefurnishings 2/.........................| 122.3   122.4   122.2     -.9    -.2      0        .2     -.2
 04-3       |   Footwear............................................| 143.5   143.8   143.9     1.6     .1       .3      .1      .1
 05-41      |   Residential electric power (Dec. 1990=100)..........| 110.5   116.6   116.9      .1     .3      0        .2     0
 05-51      |   Residential gas (Dec. 1990=100).....................| 116.2   112.1   112.5     1.7     .4     -1.3     1.8      .6
 05-71      |   Gasoline............................................|  73.5    71.3    69.4    -5.7   -2.7     -7.1      .4    -1.0
 05-73-02-01|   Fuel oil No. 2......................................|  64.0    60.9    58.8    -6.1   -3.4      2.2    -5.8    -3.4
 06-35      |   Pharmaceutical preps, ethical (Prescription)........| 271.9   273.4   273.3     2.3    0         .4      .1     0
 06-36      |   Pharmaceutical preps,proprietary (Over-counter).....| 187.4   188.2   188.2     2.7    0         .3      .2      .2
 06-71      |   Soaps and synthetic detergents 2/...................| 126.1   126.5   126.3      .8    -.2      -.1     0       -.2
 06-75      |   Cosmetics and other toilet preparations 2/..........| 130.5   130.9   130.9      .5    0         .2     0       0
 07-12      |   Tires, tubes, tread, etc 2/.........................|  95.6    95.1    95.0    -1.3    -.1      -.6     -.7     -.1
 09-15-01   |   Sanitary papers and health products 2/..............| 148.1   146.6   146.6    -1.5    0       -1.2     2.5     0
 09-31-01   |   Newspaper circulation...............................| 201.9   202.5   202.7     1.6     .1      -.2      .6     -.3
 09-32-01   |   Periodical circulation..............................| 187.0   187.3   188.0     4.0     .4      -.5      .5      .5
 09-33      |   Book publishing 2/..................................| 198.9   198.2   198.3     3.0     .1       .1    -1.1      .1
 12-1       |   Household furniture 2/..............................| 145.9   146.1   146.3     1.2     .1      0        .1      .1
 12-3       |   Floor coverings 2/..................................| 129.0   128.9   125.9     -.7   -2.3       .2      .4    -2.3
 12-4       |   Household appliances 2/.............................| 111.1   110.5   109.8    -2.8    -.6       .1     -.3     -.6
 12-5       |   Home electronic equipment 2/........................|  78.2    78.3    78.3    -1.1    0        0       0       0
 12-62      |   Household glassware 2/..............................| 159.8   161.9   161.9     2.6    0        1.2     -.1     0
 12-64      |   Household flatware 2/...............................| 138.6   138.6   137.8      .1    -.6      0       0       -.6
 12-66      |   Lawn and garden equip., ex. tractors 2/.............| 132.9   132.9   132.2     -.2    -.5      0       0       -.5
 14-11-01   |   Passenger cars......................................| 136.3   132.6   130.1    -3.0   -1.9     -1.6      .3    -1.6
 15-11      |   Toys, games, and children's vehicles................| 125.3   125.2   125.1     -.2    -.1      -.2     0        .1
 15-12      |   Sporting and athletic goods 2/......................| 124.6   124.1   125.0     1.1     .7      -.2      .4      .7
 15-2       |   Tobacco products 2/.................................| 241.4   248.5   248.4     3.5    0         .4      .1     0
 15-5       |   Mobile homes 2/.....................................| 151.3   151.9   151.8     1.1    -.1      -.1      .1     -.1
 15-94-02   |   Jewelry, platinum, & karat gold 2/..................| 128.5   128.5   128.0     -.9    -.4      -.1     0       -.4
 15-94-04   |   Costume jewelry and novelties 2/....................| 139.8   139.8   140.3     2.4     .4      0       0        .4
            |                                                       |
            | CAPITAL EQUIPMENT.....................................| 138.8   138.1   137.9     -.1    -.1      -.2      .1     -.1
            |                                                       |
 11-1       |   Agricultural machinery and equipment 2/.............| 148.9   147.4   148.0     1.2     .4      -.1     0        .4
 11-2       |   Construction machinery and equipment................| 141.9   142.3   142.1     1.5    -.1       .1      .1     -.1
 11-37      |   Metal cutting machine tools 2/......................| 154.7   155.7   156.4     2.4     .4       .5      .1      .4
 11-38      |   Metal forming machine tools 2/......................| 152.5   153.3   154.2     2.7     .6       .4      .1      .6
 11-39      |   Tools, dies, jigs, fixtures, and ind. molds 2/......| 137.7   138.0   138.3     1.3     .2       .2     0        .2
 11-41      |   Pumps, compressors, and equipment...................| 145.8   146.9   147.0     2.5     .1       .3      .6      .3
 11-44      |   Industrial material handling equipment 2/...........| 128.9   129.7   129.9     2.0     .2       .2      .1      .2
 11-51      |   Electronic computers (Dec. 1990=100) 2/.............|  36.0    33.3    32.7   -21.6   -1.8     -4.6      .6    -1.8
 11-62      |   Textile machinery 2/................................| 151.6   152.5   152.5     2.8    0         .8     0       0
 11-64      |   Paper industries machinery (June 1982=100)..........| 156.7   158.3   158.7     3.1     .3       .1      .7      .3
 11-65      |   Printing trades machinery 2/........................| 139.6   140.0   140.3     2.4     .2      -.5      .5      .2
 11-74      |   Transformers and power regulators 2/................| 129.8   127.6   130.6     1.6    2.4      -.1     -.5     2.4
 11-76      |   Communication & related equip. (Dec. 1985=100) 2/...| 113.4   114.1   114.6     1.5     .4      0        .4      .4
 11-79-05   |   X-ray and electromedical equipment 2/...............| 107.8   107.1   107.8    -1.7     .7      0       -.9      .7
 11-91      |   Oil field and gas field machinery 2/................| 122.1   122.7   122.6     3.9    -.1      -.1      .6     -.1
 11-92      |   Mining machinery and equipment 2/...................| 138.6   140.1   140.4      .7     .2       .6     -.3      .2
 11-93      |   Office and store machines and equipment 2/..........| 112.4   112.5   112.5      .7    0        0       0       0
 12-2       |   Commercial furniture 2/.............................| 153.2   153.6   154.2     1.6     .4       .2     -.1      .4
 14-11-05   |   Light motor trucks..................................| 161.6   159.0   157.1    -1.4   -1.2      -.5     -.3     -.8
 14-11-06   |   Heavy motor trucks..................................| 140.5   141.1   142.0    -2.3     .6      -.4      .6      .6
 14-14      |   Truck trailers 2/...................................| 130.3   130.4   129.8     -.6    -.5      0       0       -.5
 14-21-02   |   Civilian aircraft (Dec. 1985=100)...................| 149.7   149.6   150.3     2.0     .5       .4      .1      .4
 14-31      |   Ships (Dec. 1985=100) 2/............................| 142.6   141.3   143.0     3.2    1.2     -2.7     -.1     1.2
 14-4       |   Railroad equipment..................................| 132.2   132.7   132.2    -3.7    -.4       .7      .8     -.3
            |                                                       |
            |INTERMEDIATE MATERIALS, SUPPLIES, AND COMPONENTS.......| 125.6   125.7   125.5     -.3    -.2      -.2     0       -.2
            |                                                       |
            | INTERMEDIATE FOODS AND FEEDS..........................| 127.2   126.5   125.2    -5.1   -1.0       .5    -1.4    -1.2
            |                                                       |
 02-12-03   |   Flour 2/............................................| 119.6   120.2   114.2   -19.4   -5.0      -.2    -2.6    -5.0
 02-53      |   Refined sugar 2/....................................| 126.2   124.5   120.9    -3.6   -2.9     -1.0      .1    -2.9
 02-54      |   Confectionery materials.............................| 108.0   107.6   108.0     1.1     .4      -.2     -.3     -.4
 02-72      |   Crude vegetable oils 2/.............................| 119.4   115.8   114.3    -3.7   -1.3      3.1    -1.8    -1.3
 02-9       |   Prepared animal feeds 2/............................| 136.1   136.8   134.5    -3.8   -1.7      1.7    -2.2    -1.7
            |                                                       |
            | INTERMEDIATE MATERIALS LESS FOODS AND FEEDS...........| 125.6   125.7   125.5     -.1    -.2      -.2      .2     -.2
            |                                                       |
 03-1       |   Synthetic fibers 2/.................................| 111.4   111.1   110.7     -.9    -.4      0       -.4     -.4
 03-2       |   Processed yarns and threads 2/......................| 114.4   114.0   114.0     -.4    0        -.5      .3     0
 03-3       |   Gray fabrics 2/.....................................| 121.6   121.9   122.0      .7     .1       .3      .1      .1
 03-4       |   Finished fabrics....................................| 123.6   123.8   123.8      .1    0        0       0        .1
 03-83-03   |   Industrial textile products 2/......................| 127.7   127.6   128.0      .5     .3       .1     0        .3
 04-2       |   Leather.............................................| 185.5   182.7   181.0     4.8    -.9     -2.7     -.5     -.8
 05-32      |   Liquefied petroleum gas 2/..........................|  86.0    76.2    73.3    -3.6   -3.8     -9.2     1.6    -3.8
 ____________________________________________________________________________________________________________________________________
 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 |                                                       |                       |July 1997 from:|
    code    |                      Grouping                         |_______________________|_______________|________________________
            |                                                       |       |       |       |       |       |       |       |
            |                                                       |Mar.   |June   |July   | July  | June  |Apr. to| May to|June to
            |                                                       |1997 1/|1997 1/|1997 1/| 1996  | 1997  |   May |  June |  July
 ___________|_______________________________________________________|_______|_______|_______|_______|_______|_______|_______|________
            |                                                       |
            | INTERMEDIATE MATERIALS LESS FOODS AND FEEDS           |
            |   -Continued..........................................|
 05-42      |   Commercial electric power...........................| 127.6   139.1   137.6    -1.1   -1.1     -1.3     1.2    -1.8
 05-43      |   Industrial electric power...........................| 128.2   133.2   134.8     -.9    1.2     -1.8     -.6      .7
 05-52      |   Commercial natural gas (Dec. 1990=100)..............| 110.3   103.5   103.8     2.6     .3      1.2     2.4      .8
 05-53      |   Industrial natural gas (Dec. 1990=100)..............| 107.3    99.3   100.2     2.2     .9     -1.2      .8     1.2
 05-54      |   Natural gas to electric utilities (Dec. 1990=100)...|  99.6    88.1    88.6     1.5     .6      7.2     -.3     1.2
 05-72-03   |   Jet fuels...........................................|  66.7    59.8    57.4    -7.4   -4.0     -6.2     3.1    -3.5
 05-73-03   |   No. 2 Diesel fuel...................................|  66.5    60.9    57.8   -12.6   -5.1     -2.7    -1.9    -5.0
 05-74      |   Residual fuel 2/....................................|  57.6    58.5    54.6   -11.2   -6.7     13.4     3.4    -6.7
 06-1       |   Industrial chemicals 2/.............................| 126.7   125.7   126.6     -.2     .7      -.5     -.2      .7
 06-21      |   Prepared paint......................................| 151.6   152.3   152.3     4.0    0         .1      .1      .2
 06-22      |   Paint materials 2/..................................| 139.7   141.6   140.4     -.5    -.8      1.7     -.4     -.8
 06-31      |   Medicinal and botanical chemicals 2/................| 132.2   132.3   133.4     3.3     .8       .1     -.1      .8
 06-4       |   Fats and oils, inedible 2/..........................| 132.5   127.5   124.4    -8.7   -2.4      5.1     4.3    -2.4
 06-51      |   Mixed fertilizers...................................| 113.7   113.6   113.7    -1.2     .1       .3      .1      .9
 06-52-01   |   Nitrogenates........................................| 140.9   136.4   133.7     8.8   -2.0      -.1      .1      .7
 06-52-02   |   Phosphates 2/.......................................| 112.1   109.7   108.9    -2.5    -.7      -.6    -1.6     -.7
 06-53      |   Other agricultural chemicals........................| 145.1   145.7   144.9      .4    -.5      1.3      .2     -.5
 06-6       |   Plastic resins and materials 2/.....................| 138.7   139.5   139.4     4.7    -.1       .1      .2     -.1
 07-11-02   |   Synthetic rubber 2/.................................| 120.7   119.2   118.4    -3.0    -.7      -.1     -.3     -.7
 07-21      |   Plastic construction products 2/....................| 127.4   128.3   128.3    -2.7    0         .6    -1.1     0
 07-22      |   Unsupported plastic film, sheet, & other shapes.....| 131.2   132.1   132.3     -.8     .2       .4      .3      .1
 07-26      |   Plastic parts and components for manufacturing 2/...| 117.4   117.1   117.2     -.3     .1      0       -.3      .1
 08-11      |   Softwood lumber 2/..................................| 210.5   211.8   211.6    10.4    -.1      1.3    -2.7     -.1
 08-12      |   Hardwood lumber 2/..................................| 171.2   173.8   175.4     7.5     .9       .6      .4      .9
 08-2       |   Millwork 2/.........................................| 170.4   171.1   171.4     2.6     .2       .2     -.1      .2
 08-3       |   Plywood 2/..........................................| 163.6   162.5   162.6     5.6     .1      -.4     2.7      .1
 09-11      |   Woodpulp 2/.........................................| 124.5   124.9   128.8     2.6    3.1       .6     1.9     3.1
 09-13      |   Paper 2/............................................| 140.8   143.0   144.3    -1.4     .9       .6      .4      .9
 09-14      |   Paperboard..........................................| 139.7   137.8   137.8    -6.9    0        1.2      .7      .2
 09-15-03   |   Paper boxes and containers 2/.......................| 144.6   141.1   140.6    -6.9    -.4       .1     -.9     -.4
 09-2       |   Building paper and board 2/.........................| 130.9   129.8   128.6    -6.4    -.9      -.8      .9     -.9
 09-37      |   Commercial printing (June 1982=100) 2/..............| 147.4   147.9   148.6     -.1     .5      -.1      .1      .5
 10-15      |   Foundry and forge shop products.....................| 134.3   134.1   134.3     1.2     .1      0        .1      .2
 10-17      |   Steel mill products 2/..............................| 116.1   116.4   116.5      .9     .1      -.1      .2      .1
 10-22      |   Primary nonferrous metals 2/........................| 130.3   132.2   125.2     2.3   -5.3       .5     1.9    -5.3
 10-25-01   |   Aluminum mill shapes 2/.............................| 147.6   148.2   147.3     1.1    -.6      -.5     1.4     -.6
 10-25-02   |   Copper and brass mill shapes 2/.....................| 183.5   186.8   181.8     5.5   -2.7       .2     2.4    -2.7
 10-26      |   Nonferrous wire and cable 2/........................| 149.4   151.0   149.9     2.7    -.7       .5      .1     -.7
 10-3       |   Metal containers 2/.................................| 108.2   107.6   107.8    -1.6     .2      -.1     -.2      .2
 10-4       |   Hardware............................................| 145.2   145.7   145.7     1.4    0         .1      .1      .1
 10-5       |   Plumbing fixtures and brass fittings................| 174.5   175.2   175.0     2.0    -.1       .2      .2      .2
 10-6       |   Heating equipment...................................| 152.0   152.5   153.1     1.1     .4       .1      .3      .5
 10-7       |   Fabricated structural metal products................| 139.2   140.3   140.6     1.9     .2       .4     0        .2
 10-88      |   Fabricated ferrous wire products (June 1982=100) 2/.| 127.3   127.3   127.6      .3     .2      0       0        .2
 10-89      |   Other misc. metal products 2/.......................| 126.2   126.1   126.2      .5     .1      0       -.1      .1
 11-45      |   Mechanical power transmission equipment.............| 154.5   154.9   154.8     2.2    -.1       .3     0        .1
 11-48      |   Air conditioning and refrigeration equipment........| 132.7   132.7   132.8     0       .1       .1     -.1      .1
 11-49-02   |   Metal valves, ex.fluid power (Dec. 1982=100) 2/.....| 152.1   153.8   154.2     2.9     .3      -.1      .5      .3
 11-49-05   |   Ball and roller bearings............................| 163.1   163.4   163.6     3.7     .1       .2      .1     0
 11-71      |   Wiring devices......................................| 152.8   154.8   154.9     2.2     .1       .4      .5      .3
 11-73      |   Motors, generators, motor generator sets............| 144.5   144.5   144.4    -1.2    -.1       .1     0       0
 11-75      |   Switchgear, switchboard, etc., equipment............| 144.8   145.5   145.6     2.5     .1       .3      .8      .3
 11-78      |   Electronic components and accessories 2/............| 105.8   104.6   104.8    -3.0     .2      -.9     0        .2
 11-94      |   Internal combustion engines.........................| 139.8   139.9   140.0      .6     .1       .1      .1     -.1
 11-95      |   Machine shop products 2/............................| 134.9   135.1   135.3      .9     .1      0        .1      .1
 13-11      |   Flat glass 2/.......................................| 108.2   108.2   108.1    -1.3    -.1      -.1     -.1     -.1
 13-22      |   Cement..............................................| 136.4   139.6   139.9     3.6     .2      -.4     -.1      .6
 13-3       |   Concrete products...................................| 135.4   136.2   136.3     2.0     .1       .6      .1      .1
 13-6       |   Asphalt felts and coatings 2/.......................|  99.4   101.0   100.7     1.0    -.3       .3      .5     -.3
 13-7       |   Gypsum products 2/..................................| 168.2   172.1   168.9    10.8   -1.9      1.9     -.9    -1.9
 13-8       |   Glass containers 2/.................................| 125.9   125.9   125.9    -2.9    0        0       0       0
 14-12      |   Motor vehicle parts 2/..............................| 115.7   115.4   115.4     -.8    0        0        .1     0
 14-23      |   Aircraft engines & engine parts (Dec. 1985=100).....| 137.6   135.4   135.4      .7    0       -1.9     -.1      .1
 14-25      |   Aircraft parts & aux.equip.,nec (June 1985=100) 2/..| 141.7   140.7   139.8      .6    -.6       .4     -.1     -.6
 15-42      |   Photographic supplies 2/............................| 129.3   127.3   127.3    -1.9    0       -1.2     -.4     0
 15-6       |   Medical/surgical/personal aid devices...............| 142.8   143.1   143.0     -.4    -.1      -.9      .2     -.2
            |                                                       |
            | CRUDE MATERIALS FOR FURTHER PROCESSING................| 107.6   107.2   107.2    -7.3    0        1.3    -3.3     -.1
            |                                                       |
            |  CRUDE FOODSTUFFS AND FEEDSTUFFS......................| 114.1   111.5   112.1   -14.4     .5      -.3    -5.4      .3
            |                                                       |
 01-21      |   Wheat 2/............................................| 113.2   110.1    98.7   -29.0  -10.4     -5.3    -4.4   -10.4
 01-22-02-05|   Corn................................................| 120.3   110.4   106.0   -49.5   -4.0     -3.1    -4.6      .6
 01-31      |   Slaughter cattle....................................| 100.5    94.4    96.4     1.0    2.1       .7    -6.9     2.8
 01-32      |   Slaughter hogs......................................|  79.8    95.6   100.1     3.5    4.7      2.3    -6.7     2.0
 01-41-02   |   Slaughter broilers/fryers...........................| 123.4   138.4   155.9    -3.1   12.6    -10.3     3.0    10.0
 01-42      |   Slaughter turkeys...................................|  99.4   119.4   120.6    -4.3    1.0      5.3    -1.1    -1.2
 01-6       |   Fluid milk..........................................|  98.7    93.2    90.7   -19.9   -2.7     -3.5    -3.3    -3.7
 01-83-01-31|   Soybeans............................................| 144.8   140.0   137.1     3.2   -2.1      5.1    -5.2    -3.0
 02-52-01-01|   Cane sugar,raw 2/...................................| 116.3   115.8   117.6     -.6    1.6      -.3     0       1.6
 
            |                                                       |
            |  CRUDE NONFOOD MATERIALS..............................|  99.4   100.5   100.0    -1.2    -.5      2.5    -1.6     -.5
            |                                                       |
 01-51-01-01|   Raw cotton..........................................| 122.5   116.8   119.4    -7.3    2.2      1.2      .7     8.4
 01-92-01-01|   Leaf tobacco 2/.....................................| 111.7     (3)     (3)     (3)    (3)      (3)     (3)     (3)
 04-11      |   Cattle hides 2/.....................................| 211.7   197.9   180.1    -3.2   -9.0     -1.9    -4.8    -9.0
 05-1       |   Coal 2/.............................................|  96.7    97.7    92.8     -.5   -5.0     -6.4     3.0    -5.0
 05-31      |   Natural gas 2/......................................|  78.5    88.0    85.9    -1.6   -2.4      5.8     3.3    -2.4
 05-61      |   Crude petroleum 2/..................................|  56.3    51.7    54.9    -8.3    6.2      7.3   -14.1     6.2
 08-5       |   Logs, timber, etc. 2/...............................| 216.2   216.2   217.6     7.9     .6       .6     -.1      .6
 09-12      |   Wastepaper 2/.......................................| 155.9   163.4   163.0    20.8    -.2      6.9     -.8     -.2
 10-11      |   Iron ore 2/.........................................|  99.7    95.2    95.2    -1.6    0       -4.5     0       0
 10-12      |   Iron and steel scrap 2/.............................| 186.0   186.3   189.2     -.7    1.6      2.7      .7     1.6
 10-21      |   Nonferrous metal ores (Dec. 1983=100) 2/............|  87.8    88.9    83.5    -3.6   -6.1      1.7     4.7    -6.1
 10-23-01   |   Copper base scrap 2/................................| 167.7   174.1   160.6     1.7   -7.8      4.4     1.1    -7.8
 10-23-02   |   Aluminum base scrap.................................| 202.2   197.4   192.6    15.2   -2.4      4.8     -.9    -3.8
 13-21      |   Construction sand, gravel, and crushed stone........| 147.4   148.3   148.5     1.8     .1       .3      .1     0
 ____________________________________________________________________________________________________________________________________
 
 1/  The indexes for March 1997 have been recalculated                                2/  Not seasonally adjusted.
     to incorporate late reports and corrections by respondents.                      3/  Not available.
     All indexes 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                    |March 1997 | June 1997 | July 1997 |
 _________|________________________________________________|___________|___________|___________|
          |                                                |           |           |           |
          | Finished Goods (1967=100)......................|   370.7   |   369.4   |   368.5   |
          | All commodities................................|   127.3   |   127.2   |   126.9   |
          |                                                |           |           |           |
          |                                                |           |           |           |
          |            MAJOR COMMODITY GROUPS              |           |           |           |
          |                                                |           |           |           |
          | Farm products and processed foods and feeds....|   128.4   |   126.9   |   126.7   |
 01       |   Farm products................................|   116.2   |   111.7   |   112.0   |
 02       |   Processed foods and feeds....................|   134.5   |   134.4   |   134.0   |
          |                                                |           |           |           |
          | Industrial commodities.........................|   127.1   |   127.2   |   127.0   |
 03       |   Textile products and apparel.................|   122.6   |   122.6   |   122.6   |
 04       |   Hides, skins, leather, and related products..|   156.8   |   154.6   |   151.7   |
 05       |   Fuels and related products and power 2/......|    83.4   |    84.4   |    83.6   |
 06       |   Chemicals and allied products 2/.............|   143.7   |   143.7   |   143.9   |
 07       |   Rubber and plastic products..................|   122.9   |   123.0   |   123.2   |
 08       |   Lumber and wood products.....................|   184.8   |   185.2   |   186.0   |
 09       |   Pulp, paper, and allied products.............|   166.5   |   166.4   |   166.7   |
 10       |   Metals and metal products....................|   132.2   |   132.7   |   131.9   |
 11       |   Machinery and equipment......................|   126.3   |   125.9   |   126.1   |
 12       |   Furniture and household durables.............|   131.0   |   131.1   |   130.7   |
 13       |   Nonmetallic mineral products.................|   132.6   |   133.4   |   133.3   |
 14       |   Transportation equipment.....................|   142.7   |   141.2   |   140.5   |
 15       |   Miscellaneous products.......................|   149.5   |   150.6   |   150.9   |
          |                                                |           |           |           |
          | Industrial commodities less fuels and related  |           |           |           |
          |   products and power...........................|   139.3   |   139.1   |   139.0   |
          |                                                |           |           |           |
          |                                                |           |           |           |
          |             OTHER COMMODITY GROUPINGS          |           |           |           |
          |                                                |           |           |           |
 01-1     | Fruits and melons, fresh and dry vegetables,   |           |           |           |
          |   and tree nuts................................|   127.2   |   105.0   |   101.2   |
 01-2     | Grains.........................................|   119.3   |   112.4   |   105.9   |
 01-3     | Slaughter livestock............................|    96.3   |    96.2   |    98.8   |
 01-4     | Slaughter poultry..............................|   117.5   |   133.4   |   146.9   |
 01-5     | Plant and animal fibers........................|   122.5   |   117.5   |   120.0   |
 01-7     | Chicken eggs...................................|   119.7   |    97.4   |   117.7   |
 01-8     | Hay, hayseeds, and oilseeds....................|   164.2   |   161.1   |   157.2   |
 01-83    | Oilseeds.......................................|   154.3   |   149.8   |   146.6   |
 01-9     | Other farm products............................|   166.6   |  'N.A.'   |  'N.A.'   |
 02-1     | Cereal and bakery products.....................|   158.0   |   158.2   |   157.1   |
 02-2     | Meats, poultry, and fish.......................|   119.5   |   119.2   |   119.2   |
 02-22    | Processed poultry..............................|   117.4   |   117.4   |   118.5   |
 02-5     | Sugar and confectionery........................|   138.6   |   138.2   |   137.8   |
 02-6     | Beverages and beverage materials...............|   137.1   |   139.4   |   139.1   |
 02-63    | Packaged beverage materials....................|   139.6   |   158.9   |   158.7   |
 02-7     | Fats and oils..................................|   131.3   |   129.6   |   130.9   |
 03-81    | Apparel........................................|   125.5   |   125.4   |   125.7   |
 04-4     | Other leather and related products.............|   143.0   |   143.6   |   143.7   |
 05-3     | Gas fuels 2/...................................|    79.5   |    83.8   |    81.5   |
 05-4     | Electric power.................................|   128.4   |   136.3   |   136.3   |
 05-7     | Refined petroleum products.....................|    69.5   |    66.5   |    64.5   |
 06-3     | Drugs and pharmaceuticals......................|   218.6   |   219.5   |   219.8   |
 06-5     | Agricultural chemicals and products............|   134.1   |   132.6   |   131.4   |
 06-7     | Other chemicals and allied products............|   132.6   |   133.4   |   133.7   |
 07-1     | Rubber and rubber products.....................|   116.0   |   115.8   |   115.6   |
 07-11    | Rubber, except natural rubber..................|   120.1   |   118.6   |   117.7   |
 07-13    | Miscellaneous rubber products..................|   137.5   |   138.0   |   138.0   |
 07-2     | Plastic products...............................|   129.5   |   129.7   |   130.0   |
 08-1     | Lumber.........................................|   196.4   |   198.1   |   198.4   |
 09-1     | Pulp, paper, and products, excluding building  |           |           |           |
          |   paper and board..............................|   143.1   |   142.5   |   142.9   |
 09-15    | Converted paper and paperboard products........|   148.7   |   146.7   |   146.4   |
 10-1     | Iron and steel.................................|   126.2   |   126.2   |   126.6   |
 10-2     | Nonferrous metals..............................|   139.7   |   140.5   |   136.9   |
 10-25    | Nonferrous mill shapes.........................|   146.1   |   147.1   |   145.5   |
 11-3     | Metalworking machinery and equipment...........|   144.7   |   145.3   |   145.5   |
 11-4     | General purpose machinery and equipment........|   144.5   |   145.1   |   145.4   |
 11-6     | Special industry machinery.....................|   156.3   |   156.8   |   156.8   |
 11-7     | Electrical machinery and equipment.............|   122.7   |   122.6   |   122.9   |
 11-9     | Miscellaneous machinery and equipment..........|   130.6   |   130.7   |   130.8   |
 12-6     | Other household durable goods..................|   149.7   |   150.2   |   149.9   |
 13-2     | Concrete ingredients...........................|   140.8   |   142.6   |   142.9   |
 14-1     | Motor vehicles and equipment...................|   134.3   |   132.4   |   131.2   |
 15-1     | Toys, sporting goods, small arms, etc..........|   131.5   |   131.2   |   131.7   |
 15-4     | Photographic equipment and supplies............|   119.6   |   117.0   |   118.2   |
 15-9     | Other miscellaneous products...................|   133.4   |   133.4   |   133.3   |
 __________________________________________________________|___________|___________|___________|
 
 1/  Data for March 1997 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_July_1997_from:__
     code          |                                              |base |       |       |       |        |
                   |                                              |     |Mar.   |June   |July   |  July  |  June
                   |                                              |     |1997 2/|1997 2/|1997 2/|  1996  |  1997
 __________________|______________________________________________|_____|_______|_______|_______|________|___________
                   |                                              |     |
                   |Total mining industries...................... |12/84|  78.8    79.7    79.5    -1.9    -0.3
        10         | Metal mining................................ |12/84|  90.9    90.9    86.5    -3.0    -4.8
        12         | Coal mining................................. |12/85|  92.8    93.1    90.5     0      -2.8
        13         | Oil and gas extraction...................... |12/85|  77.3    78.5    78.9    -2.2      .5
        14         | Mining and quarrying of non-metallic         |     |
                   |  minerals, except fuels..................... |12/84| 127.7   128.8   129.1     1.5      .2
                   |                                              |     |
                   |Total manufacturing industries............... |12/84| 127.8   127.3   127.0     -.1     -.2
        20         | Food and kindred products................... |12/84| 128.1   128.4   128.0     -.2     -.3
        21         | Tobacco manufactures........................ |12/84| 203.3   209.8   209.4     4.1     -.2
        22         | Textile mill products....................... |12/84| 118.8   118.9   118.4      .1     -.4
        23         | Apparel and other finished products made     |     |
                   |  from fabrics and similar materials......... |12/84| 123.2   123.1   123.4      .7      .2
        24         | Lumber and wood products, except furniture.. |12/84| 159.3   159.8   160.1     4.4      .2
        25         | Furniture and fixtures...................... |12/84| 137.7   137.9   138.3     1.5      .3
        26         | Paper and allied products................... |12/84| 132.5   131.7   131.8    -3.3      .1
        27         | Printing, publishing, and allied industries. |12/84| 168.0   168.3   168.6     2.1      .2
        28         | Chemicals and allied products............... |12/84| 146.9   146.9   147.3     1.0      .3
        29         | Petroleum refining and related products..... |12/84|  87.3    83.7    81.5    -5.6    -2.6
        30         | Rubber and miscellaneous plastic products... |12/84| 122.4   122.7   122.9     -.2      .2
        31         | Leather and leather products................ |12/84| 137.2   136.9   136.9     2.1     0
        32         | Stone, clay, glass, and concrete products... |12/84| 127.1   127.6   127.5     1.4     -.1
        33         | Primary metal industries.................... |12/84| 124.8   125.5   125.0     1.5     -.4
        34         | Fabricated metal products, except machinery  |     |
                   |  and transportation equipment............... |12/84| 127.1   127.5   127.7     1.2      .2
        35         | Machinery, except electrical................ |12/84| 119.1   118.6   118.1     -.8     -.4
        36         | Electrical and electronic machinery,         |     |
                   |  equipment, and supplies.................... |12/84| 112.2   112.0   111.7    -1.2     -.3
        37         | Transportation equipment.................... |12/84| 135.3   133.8   133.0     -.6     -.6
        38         | Measuring and controlling instruments;       |     |
                   |  photographic, medical, optical goods;       |     |
                   |  watches, clocks............................ |12/84| 125.5   125.2   125.8      .5      .5
        39         | Miscellaneous manufacturing industries...... |12/85| 128.9   128.9   129.0      .9      .1
                   |                                              |     |
                   |Services industries                           |     |
        40         | Railroad transportation..................... |12/96| 100.1   100.4   100.4     (3)     0
        42         | Motor freight transportation and warehousing |06/93| 108.6   109.0   109.2     2.8      .2
        43         | United states postal service................ |06/89| 132.3   132.3   132.3     0       0
        44         | Water transportation........................ |12/92| 104.1   104.5   105.9     2.8     1.3
        45         | Transportation by air....................... |12/92| 124.6   126.4   126.3     3.1     -.1
        46         | Pipe lines, except natural gas.............. |12/86|  98.8    98.9    98.7    -5.1     -.2
        80         | Health services............................. |12/94| 105.9   106.1   106.2     1.5      .1
        81         | Legal services.............................. |12/96| 102.0   102.2   102.2     (3)     0
 ____________________________________________________________________________________________________________________
 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 March 1997 have been recalculated to incorporate late reports and corrections by respondents.
    All indexes are subject to revision four months  after original publication.
 3/ Not available.

Table 5.  Producer Price Indexes by stage of processing, seasonally adjusted
(1982=100)
________________________________________________________________________________________________________________
                                                       |      
                                                       |                      Index 1/   
                                                       |________________________________________________________
               Grouping                                |         |        |        |        |        |        
                                                       |   Feb.  |  Mar.  |  Apr.  |  May.  |  Jun.  |  Jul.    
                                                       |   1997  |  1997  |  1997  |  1997  |  1997  |  1997  
_______________________________________________________|_________|________|________|________|________|__________
      Finished goods...................................|   132.6    132.3    131.6    131.2    131.1    131.0
        Finished consumer goods........................|   131.1    130.8    129.9    129.4    129.4    129.2
          Finished consumer foods......................|   134.1    135.2    134.7    135.2    134.0    133.7
            Crude......................................|   134.1    140.5    120.9    124.7    116.6    114.6
            Processed..................................|   134.1    134.8    135.6    136.0    135.3    135.1
          Finished consumer goods, excluding foods.....|   129.7    128.8    127.8    126.8    127.2    127.1
            Nondurable goods less foods................|   126.1    124.7    123.4    122.4    123.0    123.1
            Durable goods..............................|   134.5    134.6    134.4    133.6    133.6    132.9
        Capital equipment..............................|   138.5    138.5    138.3    138.0    138.1    138.0
          Manufacturing industries.....................|   137.8    137.8    137.7    137.5    137.6    137.6
          Nonmanufacturing industries..................|   138.7    138.7    138.5    138.1    138.2    138.1
                                                       |  
      Intermediate materials, supplies, and components.|   126.4    125.9    125.5    125.3    125.3    125.1
        Materials and components for manufacturing.....|   128.4    128.5    128.3    128.3    128.4    128.3
          Materials for food manufacturing.............|   123.2    124.2    124.2    123.8    122.7    122.0
          Materials for nondurable manufacturing.......|   129.8    129.3    129.0    129.2    129.2    129.5
          Materials for durable manufacturing..........|   132.5    133.3    133.3    133.5    133.9    133.1
          Components for manufacturing.................|   126.7    126.7    126.6    126.4    126.4    126.5
        Materials and components for construction......|   145.7    146.1    146.5    147.1    147.0    147.1
        Processed fuels and lubricants.................|    94.3     90.7     88.6     86.7     87.4     86.4
          Manufacturing industries ....................|    96.3     92.8     90.8     89.0     89.0     88.9
          Nonmanufacturing industries..................|    93.0     89.3     87.1     85.3     86.3     84.8
        Containers.....................................|   137.0    136.2    134.8    134.9    134.3    133.9
        Supplies.......................................|   135.4    135.7    136.0    136.2    135.9    135.9
          Manufacturing industries.....................|   138.8    138.7    139.0    139.0    138.9    139.3
          Nonmanufacturing industries..................|   133.6    134.2    134.5    134.8    134.4    134.2
            Feeds......................................|   127.4    132.5    134.6    137.3    134.1    130.9
            Other supplies.............................|   134.5    134.4    134.5    134.4    134.5    134.6
                                                       |   
      Crude materials for further processing...........|   116.2    107.3    109.0    110.4    106.8    106.7
        Foodstuffs and feedstuffs......................|   111.5    113.7    117.3    117.0    110.7    111.0
        Nonfood materials..............................|   115.1     99.2     99.5    102.0    100.4     99.9
          Nonfood materials except fuel 2/.............|   107.9    103.8    103.3    104.7    101.1    101.3
            Manufacturing 2/...........................|    99.4     95.2     94.7     96.2     92.4     92.6
            Construction...............................|   201.5    201.8    201.3    202.5    202.5    202.9
          Crude fuel 3/................................|   116.6     82.1     83.6     87.7     89.7     88.2
            Manufacturing industries...................|   112.0     81.4     82.7     86.4     88.0     86.8
            Nonmanufacturing industries................|   119.3     83.3     84.9     89.2     91.3     89.7
                                                       |  
                     Special groupings                 |   
                                                       |   
      Finished goods, excluding foods..................|   132.0    131.4    130.6    129.9    130.2    130.1
      Intermediate materials less foods and feeds......|   126.6    125.9    125.4    125.1    125.3    125.1
      Intermediate foods and feeds.....................|   124.9    127.1    127.8    128.4    126.6    125.1
      Crude materials less agricultural products 2/....|   114.8     98.5     99.0    101.6     99.9     99.2
                                                       |   
      Finished energy goods............................|    87.3     84.6     82.3     80.6     81.2     81.3
      Finished goods less energy.......................|   140.1    140.5    140.3    140.2    140.0    139.8
      Finished consumer goods less energy..............|   140.6    141.3    141.0    141.0    140.7    140.4
                                                       |   
      Finished goods less foods and energy.............|   142.4    142.6    142.5    142.1    142.3    142.1
      Finished consumer goods less foods and energy....|   144.8    145.1    145.1    144.7    144.9    144.7
      Consumer nondurable goods less foods and energy..|   152.1    152.6    152.8    152.7    153.2    153.2
                                                       |   
      Intermediate energy goods........................|    94.1     90.5     88.3     86.6     87.1     86.1
      Intermediate materials less energy...............|   133.5    133.7    133.7    133.8    133.7    133.7
      Intermediate materials less foods and energy.....|   134.1    134.1    134.1    134.1    134.2    134.2
                                                       |   
      Crude energy materials 2/........................|    98.0     77.1     78.7     81.4     79.0     78.7
      Crude materials less energy......................|   123.5    125.2    126.7    127.0    122.7    122.7
      Crude nonfood materials less energy 3/...........|   158.4    158.9    155.0    156.9    157.5    156.7
______________________________________________________________________________________________________________

  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 March 1997 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.