FOR DATA ONLY:  (202) 606-7828     USDL 97-226
FOR TECHNICAL INFORMATION:         TRANSMISSION OF MATERIAL IN
(202) 606-7705                     THIS RELEASE IS EMBARGOED
MEDIA CONTACT:  (202) 606-5902     UNTIL 8:30 A.M. (E.D.T), FRIDAY,
http://stats.bls.gov/ppihome.htm   JULY 11, 1997

                    Producer Price Indexes -- June 1997

     The Producer Price Index for Finished Goods decreased 0.1 percent in
June, seasonally adjusted, the Bureau of Labor Statistics of the U. S.
Department of Labor reported today.  This followed drops of 0.3 percent in
May and 0.6 percent in April and is the sixth consecutive monthly decline
in the index.  Prices received by domestic producers of intermediate goods
were unchanged in June following a 0.2-percent decrease in the previous
month.  The Crude Goods Price Index fell 3.3 percent after increasing 1.3
percent in May.  (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                                                     
 June     0.3    1.4   -0.8     0.1         2.7   -0.3   -2.4
 July       0    0.1    0.4       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.   r-0.3   -0.4  r-1.2   r-0.1         2.2  r-0.2  r-8.3
 Mar.   r-0.2    0.9  r-3.2    r0.2         1.6  r-0.4  r-5.3
 Apr.    -0.6   -0.4   -2.6    -0.1         0.8   -0.3   -0.9
 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
r=revised.  Some of the figures shown above and elsewhere in this release
may differ from those previously
reported because data for February 1997 have been recalculated to
incorporate late reports and corrections
by respondents.
                                    -2-

     Among finished goods in June, the index for finished energy goods rose
0.7 percent, while the index for finished goods other than foods and energy
increased 0.1 percent.  Both indexes fell in the previous month.  Prices
for consumer foods, on the other hand, turned down in June after rising in
the prior month.

     During the first six months of 1997, the Finished Goods Price Index
fell at a seasonally adjusted annual rate of 3.4 percent after rising at an
equal rate in the last half of 1996.  Prices for consumer foods declined at
a seasonally adjusted annual rate of 2.8 percent during the first six
months of 1997 following a 3.5-percent rate of increase in the latter half
of 1996.  The index for finished goods less foods and energy fell at a 0.3-
percent seasonally adjusted annual rate for the first six months of 1997
after increasing at a 0.6-percent rate from June 1996 to December 1996.
Prices for finished energy goods declined at a 16.0-percent seasonally
adjusted annual rate in the first half of 1997 following a 16.2-percent
rate of increase in the previous six months.  The Intermediate Goods Price
Index moved down at a 1.7-percent seasonally adjusted annual rate from
December 1996 to June 1997 after posting a 1.1-percent rate of increase for
the last six months of 1996.  The Crude Goods Price Index fell at a 23.5-
percent seasonally adjusted annual rate in the first half of 1997 after
increasing at a 17.6-percent rate in the previous six months.

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                                                             
 June     0.7   -2.4    0.0        0.3    0.7   -6.8   -1.8     9.6
 July     0.4      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.   r-0.1  r-0.8    0.1       r1.1  r-1.4 r-17.9   r1.1     r4.5
 Mar.    r1.9  r-4.3      0        0.6   r1.9 r-15.3   r0.2     0.3
 Apr.     0.4   -2.0      0       -0.1    3.3   -5.2   -2.3     -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
r=revised.  Some of the figures shown above and elsewhere in this release
may differ from those previously
reported because data for February 1997 have been recalculated to
incorporate late reports and corrections
by respondents.

                                    -3-
                                     
     Before seasonal adjustment, the Producer Price Index for Finished
Goods increased 0.1 percent in June to 131.6 (1982=100).  From June 1996 to
June 1997, the Finished Goods Price Index fell 0.1 percent.  During this
same period, consumer food prices moved up 0.3 percent, prices for finished
energy goods fell 1.3 percent, and prices for finished goods other than
foods and energy rose 0.2 percent.  Prices received by domestic producers
of intermediate goods moved down 0.4 percent during the 12 months ended in
June 1997, and crude material prices fell 5.4 percent over the same period.

Finished goods

     The Producer Price Index for finished energy goods rose 0.7 percent in
June following a 2.1-percent decline in May.  Gasoline prices advanced 0.4
percent after falling 7.1 percent in May.  The index for residential
natural gas also turned up after falling a month earlier.  Prices for
finished lubricants rose more than a month ago.  The index for residential
electric power rose after showing no change in May.  By contrast, home
heating oil prices turned down 5.8 percent after increasing 2.2 percent in
the previous month.

     Prices for finished consumer foods fell 0.9 percent in June following
a 0.4-percent increase in the prior month.  The index for fresh fruits and
melons decreased 15.6 percent after rising 7.9 percent in the previous
month.  Prices for finfish and shellfish, pork, and beef and veal also
turned down following increases a month earlier.  The indexes for eggs for
fresh use and for processed young chickens fell more than in May.  On the
other hand, prices for dairy products decreased 1.1 percent after declining
1.5 percent a month ago.  The indexes for soft drinks and milled rice also
fell less than in the previous month.

     The index for consumer goods other than foods and energy moved up 0.1
percent after falling 0.3 percent in May.  On a seasonally adjusted annual
rate basis, this index showed no change from December 1996 to June 1997,
compared with a 0.6-percent rate of increase in the latter half of 1996.
In June, the index for passenger cars rose 0.3 percent following a 1.6-
percent decline in May.  Prices for sanitary papers, alcoholic beverages,
and periodical circulation also turned up after falling in the previous
month.  By contrast, the index for book publishing turned down 1.1 percent
in June after rising 0.1 percent a month earlier.  Prices for men's and
boys' apparel and for household appliances also fell after increasing in
May.  The indexes for tobacco products, prescription drugs, and women's
apparel rose less than a month ago.

     In June, the capital equipment index increased 0.1 percent after
declining 0.2 percent in May.  This index moved down at a 0.6-percent
seasonally adjusted annual rate in the first half of 1997 after increasing
at a 0.3-percent rate in the last half of 1996.  In June, the index for
electronic computers rose 0.6 percent after decreasing 4.6 percent in May.
Prices for heavy motor trucks also turned up after falling a month earlier.
The index for communications and related equipment rose after showing no
change in the previous month.  Prices for light motor trucks and ships fell
less than a month ago.  Conversely, the index for civilian aircraft
increased 0.1 percent following a 0.4 percent gain in May.  Prices for x-
ray equipment turned down after showing no change in the prior month.
Commercial furniture prices fell after rising in May.  The index for tools
and dies showed no change after increasing a month ago.

                                    -4-
                                     
Intermediate goods

     The Producer Price Index for Intermediate Materials, Supplies, and
Components showed no change in June, seasonally adjusted, after declining
0.2 percent in May.  The index for intermediate energy goods turned up
after falling a month ago.  Prices for durable manufacturing materials rose
more than in the prior month.  By contrast, the indexes for both
intermediate foods and feeds and construction materials turned down after
rising a month earlier.  Prices for nondurable manufacturing materials were
unchanged after increasing in May.  Excluding foods and energy prices, the
index for intermediate materials increased 0.1 percent after showing no
change in each of the previous 3 months.  (See table B.)
     
     The index for intermediate energy materials rose 0.6 percent,
seasonally adjusted, after falling 1.9 percent in June.  This index
declined at a 14.7 percent seasonally adjusted annual rate in the first
half of 1997 after rising at a 12.5-percent rate in the final half of 1996.
In June, gasoline prices rose 0.4 percent after falling 7.1 percent a month
ago.  Prices for commercial electric power and jet fuels increased after
decreasing a month earlier.  By contrast, the index for residual fuel rose
3.4 percent after advancing 13.4 percent in the prior month.  Prices for
natural gas to electric utilities and petroleum coke fell after rising in
May.
     
     The index for durable manufacturing materials advanced 0.3 percent in
June following a 0.2-percent increase in May.  From December 1996 to June
1997, this index advanced at a 3.7-percent seasonally adjusted annual rate
after falling at a 1.7-percent rate in the latter half of 1996.  In June,
price increases for aluminum mill shapes, copper and brass mill shapes,
plywood, and for copper cathode and refined copper outweighed price
declines for cold rolled sheets and strip, silver, gold, and cold finished
bars.
     
     The index for construction materials declined 0.1 percent following a
0.4-percent advance in May.  Prices for this category advanced at a 2.9-
percent seasonally adjusted annual rate during the first 6 months of 1997
after rising at a 1.4-percent rate during the last 6 months of 1996.  In
June, the index for softwood lumber turned down 2.7 percent after rising
1.3 percent in the prior month.  Prices for plastic construction products
also turned down after rising a month earlier.  Fabricated structural metal
products showed no changed after advancing a month ago.  Prices decreased
for gypsum products and millwork after increasing in May.  By contrast, the
index for plywood advanced 2.7 percent after falling 0.4 percent a month
earlier.  Prices for metal valves, except fluid power, also turned up after
falling in May.
     
     The index for intermediate foods and feeds declined 1.4 percent in
June following a 0.5-percent rise in May.  This index advanced at a 1.6-
percent seasonally adjusted annual rate in the first half of 1997 after
falling at an 8.5-percent rate in the latter half of 1996.  In June, the
index for prepared animal feeds turned down 2.2 percent following a 1.7-
percent rise in the prior month.  Prices for pork, beef and veal, and crude
vegetable oils also declined after rising a month ago.  By contrast,
natural, processed, and imitation cheese declined 0.7 percent following a
3.3-percent decrease a month ago.  Dry milk products showed no change after
declining in May.
     
     The index for nondurable manufacturing materials showed no change in
June following a 0.2-percent increase in May.  This index declined at a 0.9-
percent seasonally adjusted annual rate during the first 6 months of 1997
after falling at a 0.3-percent rate in the second half of 1996.  In June,
prices for primary basic organic chemicals declined 0.2 percent after a 0.5-
percent decline a month ago.  The index for paint materials turned down
after rising in May.  Prices for both paper and paperboard rose less than
in the previous month.  By contrast, prices for miscellaneous basic organic
chemicals declined 0.1 percent after a 0.9-percent fall a month earlier.
The indexes for sodium compounds and for processed yarns and threads rose
after falling in the prior month.  Prices for woodpulp increased more than
in May.
                                    -5-
                                     
Crude Goods

     The Producer Price Index for Crude Materials for Further Processing
decreased 3.3 percent, seasonally adjusted following a 1.3-percent increase
in May.  Prices for crude energy materials also fell after rising in the
prior month.  The index for crude foodstuffs and feedstuffs decreased more
than a month ago.  Prices for basic industrial materials rose less than in
May.  (See table B.)

     Prices for crude energy materials dropped 2.9 percent following a 3.4-
percent gain in May.  This index decreased at a 48.0-percent seasonally
adjusted annual rate during the first half of 1997 following a 99.5-percent
rate of increase in the last half of 1996.  In June, prices for crude
petroleum turned down 14.1 percent after rising 7.3 percent in the previous
month.  The index for natural gas increased 3.3 percent after gaining 5.8
percent in the prior month.  By contrast, prices for coal turned up 3.0
percent after falling 6.4 percent in May.
     
     Prices for crude foodstuffs and feedstuffs declined 5.4 percent
following a 0.3-percent decrease in May.  From December 1996 through June
1997, this index fell at a 6.5-percent seasonally adjusted annual rate
after declining at a 19.5-percent rate in the second half of 1996.  In
June, prices for slaughter cattle fell 6.9 percent following a 0.7-percent
increase in the prior month.  The indexes for slaughter hogs, soybeans,
Irish potatoes for processing, and for fresh fruits and melons also turned
down after rising in May.  On the other hand, the index for slaughter
broilers and fryers rose 3.0 percent after decreasing 10.3 percent a month
ago.  Prices for fresh vegetables, except potatoes also turned up after
falling in the previous month.  The indexes for wheat and fluid milk fell
less than in May.
     
     The index for crude nonfood materials less energy increased 0.4
percent following a 1.2-percent gain in May.  This index increased at a
seasonally adjusted annual rate of 5.7 percent in the first six months of
1997 following a 1.9-percent rate of decline in the latter half of 1996.
In June, prices for aluminum base scrap decreased 0.9 percent after a 4.8-
percent rise a month ago.  The indexes for wastepaper, gold ores, and for
softwood logs, bolts, and timber also turned down after rising in May.
Prices for iron and steel scrap and copper base scrap rose less than in the
previous month.  Conversely, the index for copper ores increased 11.9
percent after rising 3.6 percent in the prior month.  Prices for iron ore
showed no change after falling in May.  The index for pulpwood logs fell
less than in the prior month.
     
Net output price indexes for mining, manufacturing, and other industries

Mining.  The Producer Price Index for the net output of total domestic
mining industries declined 1.8 percent in June following a 2.3-percent
advance in May.  (Net output price indexes are not seasonally adjusted.)
During the first half of 1997 this index declined at an annual rate of 41.5
percent, after advancing at a 78.0-percent annual rate for the latter half
of 1996.  In June, prices for the oil and gas extraction industry group
fell 3.0 percent following a 4.0-percent rise in the previous month.  By
contrast, the index for the coal mining industry group increased 1.3
percent after a 3.9-percent decrease a month ago.  Prices for the metal
mining industry group rose 3.4 percent following a 0.3-percent gain in the
previous month.  The index for the nonmetallic minerals mining industry
group advanced 0.4 percent after a 0.1-percent advance the prior month.  In
June, the Producer Price Index for total mining industries stood at 79.7
(December 1984=100), 2.0 percent above its year-ago level.

                                    -6-
                                     
Manufacturing.  The Producer Price Index for the net output of total
domestic manufacturing industries decreased 0.2 percent in June following a
0.1-percent decrease in May.  During the first half of 1997 this index
declined at an annual rate of 1.1 percent, after increasing at a 1.4-
percent annual rate for the latter half of 1996.  In June, price decreases
for the industry groups for petroleum refining and related products, food
and kindred products, lumber and wood products, rubber and plastic
products, and measuring and controlling instruments more than offset price
increases for the paper and allied products, primary metal industries, and
electrical machinery and equipment industry groups.  In June, the Producer
Price Index for the net output of the domestic manufacturing sector stood
at 127.3 (December 1984=100), 0.2 percent above its year-ago level.

Other.  Among other industries in June, the indexes for railroads (line-
haul operating), trucking (except local), travel agencies, natural gas
utilities, real estate agents and managers, hotels and motels, and medical
laboratories advanced following declines a month ago.  Prices for air
passenger transportation rose after showing no change in the prior month.
The indexes for tugging and towing services, electric power utilities,
passenger car rental, skilled and intermediate care facilities, legal
services, and architectural services increased more than in the previous
month.  Prices for general warehousing and storage and nonscheduled air
transportation were unchanged following declines in May.  The indexes for
water transportation of freight (not elsewhere classified), freight
transportation arrangement, operators and lessors of nonresidential
buildings, and other specialty hospitals fell less than in the previous
month.

     By contrast, prices for local trucking without storage, deep sea
foreign transportation of freight, airports and airport services, radio
broadcasting, and truck rental and leasing declined following advances a
month ago.  The indexes for scheduled air cargo transportation and
telephone communications (except radiotelephone) fell after showing no
change in the prior month.  The index for psychiatric hospitals fell more
than last month.  Prices for local trucking with storage, marine cargo
handling, refined petroleum pipelines, and scrap and waste materials were
unchanged following advances in May.  Prices for cable and other pay
television services, advertising agencies, and accounting services rose
less than in the previous month.

                                   *****
              Producer Price Index data for July 1997 will be
          released on Wednesday, August 13, 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.
 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|                       |June 1997 from:|
                                                  |          |_______________________|_______________|_______________________________
                                                  |   Dec.   |       |       |       |       |       |       |         |
                                                  |           Feb.   | May   |June   |  June |  May  |Mar. to|Apr.  to | May  to
                                                  |   1996 1/|1997 2/|1997 2/|1997 2/|  1996 | 1997  |  Apr. |    May  |  June
 _________________________________________________|__________|_______|_______|_______|_______|_______|_______|_________|____________
                                                  |
 Finished goods...................................|  100.000   132.2   131.5   131.6    -0.1    0.1     -0.6     -0.3    -0.1
   Finished consumer goods........................|   76.423   130.6   129.8   130.1      .1     .2      -.7      -.4     0
     Finished consumer foods......................|   23.644   133.8   135.0   134.0      .3    -.7      -.4       .4     -.9
       Crude......................................|    1.639   133.2   123.1   115.5   -10.3   -6.2    -13.2      3.1    -6.5
       Processed..................................|   22.005   133.9   135.9   135.3     1.0    -.4       .5       .3     -.5
     Finished consumer goods, excluding foods.....|   52.779   129.0   127.4   128.2     -.1     .6      -.7      -.8      .3
       Nondurable goods less foods................|   36.392   124.9   123.3   124.4      .2     .9     -1.0      -.8      .5
       Durable goods..............................|   16.387   135.0   133.6   133.5     -.7    -.1      -.1      -.6     0
   Capital equipment..............................|   23.577   138.9   138.1   138.1     -.1    0        -.4      -.2      .1
     Manufacturing industries.....................|    6.028   137.9   137.5   137.6      .3     .1      -.1      -.1      .1
     Nonmanufacturing industries..................|   17.549   139.1   138.2   138.1     -.3    -.1      -.5      -.3      .1
                                                  |
 Intermediate materials, supplies, and components.|  100.000   126.1   125.3   125.7     -.4     .3      -.3      -.2     0
   Materials and components for manufacturing.....|   49.031   128.4   128.4   128.3     -.4    -.1      -.1      0        .1
     Materials for food manufacturing.............|    3.318   122.9   123.8   122.8    -4.2    -.8      -.1      -.3     -.9
     Materials for nondurable manufacturing.......|   15.610   129.9   129.3   129.1     -.6    -.2      -.2       .2     0
     Materials for durable manufacturing..........|   10.965   132.6   133.5   133.8      .9     .2      -.1       .2      .3
     Components for manufacturing.................|   19.138   126.8   126.4   126.4     -.2    0         .1      -.2     0
   Materials and components for construction......|   12.691   145.7   147.2   147.1     2.2    -.1       .3       .4     -.1
   Processed fuels and lubricants.................|   13.665    92.1    86.8    89.6    -1.9    3.2     -1.9     -2.1      .8
     Manufacturing industries ....................|    5.415    94.1    89.6    91.4    -3.0    2.0     -1.7     -2.0     0
     Nonmanufacturing industries..................|    8.250    90.7    85.0    88.5    -1.1    4.1     -2.1     -2.1     1.2
   Containers.....................................|    3.527   136.9   134.9   134.2    -4.2    -.5     -1.5       .1     -.4
   Supplies.......................................|   21.086   135.5   136.2   135.9     -.1    -.2       .1       .1     -.2
     Manufacturing industries.....................|    7.535   138.8   139.0   138.9      .1    -.1      0        0       -.1
     Nonmanufacturing industries..................|   13.551   133.8   134.8   134.4     -.3    -.3       .2       .2     -.3
       Feeds......................................|    1.607   127.8   137.1   133.6    -2.2   -2.6      1.4      2.0    -2.3
       Other supplies.............................|   11.944   134.6   134.5   134.5     0      0        0        -.1      .1
                                                  |
 Crude materials for further processing...........|  100.000   116.1   110.6   107.2    -5.4   -3.1      -.9      1.3    -3.3
   Foodstuffs and feedstuffs......................|   38.004   111.0   117.4   111.5   -13.6   -5.0      3.3      -.3    -5.4
   Nonfood materials..............................|   61.996   115.2   102.1   100.5     1.8   -1.6     -4.1      2.5    -1.6
     Nonfood materials except fuel 3/.............|   36.095   108.1   104.9   101.3    -1.6   -3.4      -.4      1.4    -3.4
       Manufacturing 3/...........................|   32.588    99.6    96.4    92.6    -2.3   -3.9      -.5      1.6    -4.0
       Construction...............................|    3.507   201.6   202.7   202.6     5.0    0        -.1       .6     0
     Crude fuel 4/................................|   25.901   116.6    87.7    89.7     9.0    2.3    -11.0      4.9     2.3
       Manufacturing industries...................|    5.258   112.0    86.4    88.0     8.0    1.9    -10.0      4.5     1.9
       Nonmanufacturing industries................|   20.643   119.3    89.2    91.3     9.3    2.4    -11.2      5.1     2.4
                                                  |
                Special groupings                 |
                                                  |
 Finished goods, excluding foods..................|5/ 76.356   131.7   130.3   130.9     -.1     .5      -.7      -.5      .2
 Intermediate materials less foods and feeds......|6/ 95.065   126.2   125.2   125.7     -.2     .4      -.3      -.2      .2
 Intermediate foods and feeds.....................|6/  4.935   124.8   128.3   126.5    -3.6   -1.4       .4       .5    -1.4
 Crude materials less agricultural products 3/ 7/.|8/ 59.898   114.9   101.6    99.8     1.9   -1.8     -4.0      2.6    -1.7
                                                  |
 Finished energy goods............................|5/ 14.720    85.2    82.0    83.6    -1.3    2.0     -2.6     -2.1      .7
 Finished goods less energy.......................|5/ 85.280   140.2   140.2   139.9      .1    -.2      -.2      -.1     -.1
 Finished consumer goods less energy..............|5/ 61.703   140.7   141.0   140.6      .3    -.3      -.2      0       -.2
                                                  |
 Finished goods less foods and energy.............|5/ 61.636   142.7   142.2   142.3      .2     .1      -.1      -.3      .1
 Finished consumer goods less foods and energy....|5/ 38.059   145.1   144.7   144.9      .3     .1      0        -.3      .1
 Consumer nondurable goods less foods and energy..|5/ 21.672   152.3   152.8   153.2     1.1     .3       .1      -.1      .3
                                                  |
 Intermediate energy goods........................|6/ 13.796    91.8    86.7    89.3    -2.0    3.0     -2.0     -1.9      .6
 Intermediate materials less energy...............|6/ 86.204   133.6   133.8   133.7     -.1    -.1      0         .1     -.1
 Intermediate materials less foods and energy.....|6/ 81.269   134.2   134.2   134.2      .1    0        0        0        .1
                                                  |
 Crude energy materials 3/........................|8/ 42.427    98.0    81.4    79.0     1.8   -2.9     -5.2      3.4    -2.9
 Crude materials less energy......................|8/ 57.573   123.3   127.4   123.4    -8.7   -3.1      1.3       .2    -3.4
 Crude nonfood materials less energy 4/...........|8/ 19.569   158.9   157.4   158.1     1.8     .4     -2.3      1.2      .4
                                                  |
 ____________________________________________________________________________________________________________________________________
 
   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 Feb. 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 4 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 |                                                       |                       |June 1997 from:|
    code    |                      Grouping                         |_______________________|_______________|________________________
            |                                                       |       |       |       |       |       |       |       |
            |                                                       |Feb.   | May   |June   | June  |  May  |Mar. to|Apr. to| May to
            |                                                       |1997 1/|1997 1/|1997 1/| 1996  | 1997  |  Apr. |   May |  June
 ___________|_______________________________________________________|_______|_______|_______|_______|_______|_______|_______|________
            |                                                       |
            |FINISHED GOODS.........................................| 132.2   131.5   131.6    -0.1    0.1     -0.6    -0.3    -0.1
            | FINISHED CONSUMER GOODS...............................| 130.6   129.8   130.1      .1     .2      -.7     -.4     0
            |  FINISHED CONSUMER FOODS..............................| 133.8   135.0   134.0      .3    -.7      -.4      .4     -.9
            |                                                       |
 01-11      |   Fresh fruits and melons 2/..........................| 111.7   108.0    91.1   -22.3  -15.6     -4.9     7.9   -15.6
 01-13      |   Fresh and dry vegetables 2/.........................| 123.3   111.3   108.8   -14.9   -2.2    -20.4      .1    -2.2
 01-71-07   |   Eggs for fresh use (Dec. 1991=100) 2/...............| 105.8    86.9    79.4   -17.2   -8.6    -11.3     -.8    -8.6
 02-11      |   Bakery products 2/..................................| 173.2   173.5   173.5     2.5    0        -.1      .3     0
 02-13      |   Milled rice 2/......................................| 129.4   127.6   127.5    -2.9    -.1       .9     -.7     -.1
 02-14-02   |   Pasta products (June 1985=100) 2/...................| 126.9   126.5   126.7     -.1     .2     -1.6      .1      .2
 02-21-01   |   Beef and veal.......................................|  97.9   105.3   102.1     4.8   -3.0      -.2     1.8    -1.5
 02-21-04   |   Pork................................................| 122.4   131.3   128.7     1.1   -2.0      5.6     3.2    -3.4
 02-22-03   |   Processed young chickens............................| 120.4   117.6   117.5    -5.3    -.1     -1.0    -1.5    -2.4
 02-22-06   |   Processed turkeys 2/................................|  97.9   103.8   104.1    -2.5     .3      1.7     2.2      .3
 02-23      |   Finfish and shellfish...............................| 173.1   179.9   173.1     9.7   -3.8     -5.0     7.9    -3.2
 02-3       |   Dairy products......................................| 127.3   126.0   125.3    -4.9    -.6     -1.0    -1.5    -1.1
 02-4       |   Processed fruits and vegetables 2/..................| 127.8   126.8   126.3    -1.3    -.4      -.1     -.3     -.4
 02-55      |   Confectionery end products 2/.......................| 168.4   168.9   168.4      .2    -.3       .3      .2     -.3
 02-62      |   Soft drinks.........................................| 133.6   133.9   133.4     0      -.4       .5     -.4     -.1
 02-63-01   |   Roasted coffee 2/...................................| 127.7   160.4   166.5    30.4    3.8      4.8     5.8     3.8
 02-76      |   Shortening and cooking oils 2/......................| 136.1   137.2   136.6    -2.6    -.4      -.9     1.4     -.4
            |                                                       |
            |  FINISHED CONSUMER GOODS EXCLUDING FOODS..............| 129.0   127.4   128.2     -.1     .6      -.7     -.8      .3
            |                                                       |
 02-61      |   Alcoholic beverages.................................| 135.1   135.3   135.8     2.2     .4       .1     -.2      .5
 03-81-01   |   Women's apparel 2/..................................| 120.2   119.8   119.9     -.2     .1      -.5      .2      .1
 03-81-02   |   Men's and boys' apparel.............................| 132.3   132.6   132.4      .1    -.2      -.1      .2     -.1
 03-81-03   |   Girls', children's, and infants' apparel 2/.........| 124.0   124.3   124.4     2.1     .1      0       -.1      .1
 03-82      |   Textile housefurnishings 2/.........................| 122.2   122.2   122.4      .8     .2      0       0        .2
 04-3       |   Footwear............................................| 143.3   143.7   143.8     1.6     .1      -.1      .3      .1
 05-41      |   Residential electric power (Dec. 1990=100)..........| 110.6   111.7   116.6     -.3    4.4      -.1     0        .2
 05-51      |   Residential gas (Dec. 1990=100).....................| 122.2   110.1   112.1     1.6    1.8     -3.3    -1.3     1.8
 05-71      |   Gasoline............................................|  75.0    72.3    71.3    -5.9   -1.4     -4.1    -7.1      .4
 05-73-02-01|   Fuel oil No. 2......................................|  72.4    66.1    60.9     1.3   -7.9      1.4     2.2    -5.8
 06-35      |   Pharmaceutical preps, ethical (Prescription)........| 271.0   274.0   273.4     2.7    -.2      -.7      .4      .1
 06-36      |   Pharmaceutical preps,proprietary (Over-counter).....| 185.7   187.8   188.2     2.7     .2      1.0      .3      .2
 06-71      |   Soaps and synthetic detergents 2/...................| 126.1   126.5   126.5     1.0    0        1.0     -.1     0
 06-75      |   Cosmetics and other toilet preparations 2/..........| 130.7   130.9   130.9      .6    0        0        .2     0
 07-12      |   Tires, tubes, tread, etc 2/.........................|  95.7    95.8    95.1    -1.1    -.7       .5     -.6     -.7
 09-15-01   |   Sanitary papers and health products 2/..............| 147.6   143.0   146.6    -2.4    2.5      -.5    -1.2     2.5
 09-31-01   |   Newspaper circulation...............................| 201.6   202.1   202.5     2.5     .2       .4     -.2      .6
 09-32-01   |   Periodical circulation..............................| 187.3   186.7   187.3     3.7     .3      2.0     -.5      .5
 09-33      |   Book publishing 2/..................................| 199.0   200.4   198.2     2.0   -1.1      0        .1    -1.1
 12-1       |   Household furniture 2/..............................| 145.7   146.0   146.1     1.1     .1      0       0        .1
 12-3       |   Floor coverings 2/..................................| 128.8   128.4   128.9     2.6     .4      -.6      .2      .4
 12-4       |   Household appliances 2/.............................| 111.0   110.8   110.5    -2.3    -.3      -.3      .1     -.3
 12-5       |   Home electronic equipment 2/........................|  78.3    78.3    78.3     -.9    0         .1     0       0
 12-62      |   Household glassware 2/..............................| 158.5   162.0   161.9     2.5    -.1      1.5     1.2     -.1
 12-64      |   Household flatware 2/...............................| 138.6   138.6   138.6      .1    0        0       0       0
 12-66      |   Lawn and garden equip., ex. tractors 2/.............| 133.1   132.9   132.9      .5    0        -.2     0       0
 14-11-01   |   Passenger cars......................................| 136.7   132.8   132.6    -2.4    -.2      -.5    -1.6      .3
 15-11      |   Toys, games, and children's vehicles................| 125.4   125.2   125.2     -.2    0         .2     -.2     0
 15-12      |   Sporting and athletic goods 2/......................| 123.6   123.6   124.1      .6     .4     -1.1     -.2      .4
 15-2       |   Tobacco products 2/.................................| 239.2   248.3   248.5     3.6     .1       .9      .4      .1
 15-5       |   Mobile homes 2/.....................................| 151.1   151.8   151.9     1.3     .1       .7     -.1      .1
 15-94-02   |   Jewelry, platinum, & karat gold 2/..................| 128.0   128.5   128.5     -.6    0         .2     -.1     0
 15-94-04   |   Costume jewelry and novelties 2/....................| 139.8   139.8   139.8     2.0    0         .9     0       0
            |                                                       |
            | CAPITAL EQUIPMENT.....................................| 138.9   138.1   138.1     -.1    0        -.4     -.2      .1
            |                                                       |
 11-1       |   Agricultural machinery and equipment 2/.............| 148.5   147.4   147.4      .9    0         .1     -.1     0
 11-2       |   Construction machinery and equipment................| 142.0   142.3   142.3     1.7    0         .1      .1      .1
 11-37      |   Metal cutting machine tools 2/......................| 154.6   155.6   155.7     1.9     .1       .2      .5      .1
 11-38      |   Metal forming machine tools 2/......................| 152.3   153.1   153.3     2.3     .1      0        .4      .1
 11-39      |   Tools, dies, jigs, fixtures, and ind. molds 2/......| 137.6   138.0   138.0     1.3    0        -.1      .2     0
 11-41      |   Pumps, compressors, and equipment...................| 145.4   146.0   146.9     2.4     .6       .3      .3      .6
 11-44      |   Industrial material handling equipment 2/...........| 128.8   129.6   129.7     1.7     .1       .5      .2      .1
 11-51      |   Electronic computers (Dec. 1990=100) 2/.............|  36.7    33.1    33.3   -21.5     .6     -4.1    -4.6      .6
 11-62      |   Textile machinery 2/................................| 151.4   152.5   152.5     2.8    0        -.2      .8     0
 11-64      |   Paper industries machinery (June 1982=100)..........| 156.4   157.3   158.3     2.9     .6       .3      .1      .7
 11-65      |   Printing trades machinery 2/........................| 139.1   139.3   140.0     2.3     .5       .1     -.5      .5
 11-74      |   Transformers and power regulators 2/................| 128.5   128.3   127.6     -.9    -.5      0       -.1     -.5
 11-76      |   Communication & related equip. (Dec. 1985=100) 2/...| 114.0   113.7   114.1     1.3     .4       .1     0        .4
 11-79-05   |   X-ray and electromedical equipment 2/...............| 107.9   108.1   107.1    -2.4    -.9       .6     0       -.9
 11-91      |   Oil field and gas field machinery 2/................| 121.3   122.0   122.7     4.2     .6       .3     -.1      .6
 11-92      |   Mining machinery and equipment 2/...................| 138.5   140.5   140.1      .6    -.3       .9      .6     -.3
 11-93      |   Office and store machines and equipment 2/..........| 111.7   112.5   112.5      .4    0         .1     0       0
 12-2       |   Commercial furniture 2/.............................| 153.4   153.8   153.6     1.7    -.1       .5      .2     -.1
 14-11-05   |   Light motor trucks..................................| 162.0   159.7   159.0     -.7    -.4      -.4     -.5     -.3
 14-11-06   |   Heavy motor trucks..................................| 140.0   141.2   141.1    -3.0    -.1      -.2     -.4      .6
 14-14      |   Truck trailers 2/...................................| 130.2   130.4   130.4     -.2    0        -.1     0       0
 14-21-02   |   Civilian aircraft (Dec. 1985=100)...................| 149.7   149.6   149.6     1.8    0       -2.0      .4      .1
 14-31      |   Ships (Dec. 1985=100) 2/............................| 142.6   141.5   141.3     2.2    -.1      2.0    -2.7     -.1
 14-4       |   Railroad equipment..................................| 136.6   131.8   132.7    -3.4     .7     -2.1      .7      .8
            |                                                       |
            |INTERMEDIATE MATERIALS, SUPPLIES, AND COMPONENTS.......| 126.1   125.3   125.7     -.4     .3      -.3     -.2     0
            |                                                       |
            | INTERMEDIATE FOODS AND FEEDS..........................| 124.8   128.3   126.5    -3.6   -1.4       .4      .5    -1.4
            |                                                       |
 02-12-03   |   Flour 2/............................................| 122.2   123.4   120.2   -19.9   -2.6      3.5     -.2    -2.6
 02-53      |   Refined sugar 2/....................................| 125.5   124.4   124.5     -.4     .1      -.9    -1.0      .1
 02-54      |   Confectionery materials.............................| 107.8   107.8   107.6      .8    -.2     -1.7     -.2     -.3
 02-72      |   Crude vegetable oils 2/.............................| 112.8   117.9   115.8    -7.2   -1.8     -4.3     3.1    -1.8
 02-9       |   Prepared animal feeds 2/............................| 131.7   139.9   136.8     -.9   -2.2      1.0     1.7    -2.2
            |                                                       |
            | INTERMEDIATE MATERIALS LESS FOODS AND FEEDS...........| 126.2   125.2   125.7     -.2     .4      -.3     -.2      .2
            |                                                       |
 03-1       |   Synthetic fibers 2/.................................| 111.4   111.5   111.1     1.5    -.4       .5     0       -.4
 03-2       |   Processed yarns and threads 2/......................| 114.4   113.7   114.0     -.5     .3      -.3     -.5      .3
 03-3       |   Gray fabrics 2/.....................................| 121.7   121.8   121.9      .8     .1      -.3      .3      .1
 03-4       |   Finished fabrics....................................| 123.8   123.9   123.8      .1    -.1      0       0       0
 03-83-03   |   Industrial textile products 2/......................| 126.1   127.6   127.6      .2    0        -.5      .1     0
 04-2       |   Leather.............................................| 185.3   185.5   182.7     4.3   -1.5      2.0    -2.7     -.5
 05-32      |   Liquefied petroleum gas 2/..........................| 103.1    75.0    76.2     2.0    1.6     -5.3    -9.2     1.6
 ____________________________________________________________________________________________________________________________________
 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 |                                                       |                       |June 1997 from:|
    code    |                      Grouping                         |_______________________|_______________|________________________
            |                                                       |       |       |       |       |       |       |       |
            |                                                       |Feb.   | May   |June   | June  |  May  |Mar. to|Apr. to| May to
            |                                                       |1997 1/|1997 1/|1997 1/| 1996  | 1997  |  Apr. |   May |  June
 ___________|_______________________________________________________|_______|_______|_______|_______|_______|_______|_______|________
            |                                                       |
            | INTERMEDIATE MATERIALS LESS FOODS AND FEEDS           |
            |   -Continued..........................................|
 05-42      |   Commercial electric power...........................| 127.7   128.4   139.1     0.5    8.3      0.5    -1.3     1.2
 05-43      |   Industrial electric power...........................| 128.1   128.4   133.2    -3.1    3.7      -.1    -1.8     -.6
 05-52      |   Commercial natural gas (Dec. 1990=100)..............| 119.1   101.9   103.5     3.0    1.6     -4.9     1.2     2.4
 05-53      |   Industrial natural gas (Dec. 1990=100)..............| 121.9    99.9    99.3     2.2    -.6     -2.2    -1.2      .8
 05-54      |   Natural gas to electric utilities (Dec. 1990=100)...| 114.6    91.2    88.1      .9   -3.4     -4.8     7.2     -.3
 05-72-03   |   Jet fuels...........................................|  74.8    58.5    59.8    -3.7    2.2     -6.1    -6.2     3.1
 05-73-03   |   No. 2 Diesel fuel...................................|  73.1    64.1    60.9    -6.2   -5.0      -.3    -2.7    -1.9
 05-74      |   Residual fuel 2/....................................|  61.4    56.6    58.5    -4.1    3.4     -7.2    13.4     3.4
 06-1       |   Industrial chemicals 2/.............................| 127.7   126.0   125.7    -1.5    -.2      -.9     -.5     -.2
 06-21      |   Prepared paint......................................| 151.2   152.4   152.3     4.0    -.1       .4      .1      .1
 06-22      |   Paint materials 2/..................................| 140.2   142.2   141.6     -.1    -.4      -.5     1.7     -.4
 06-31      |   Medicinal and botanical chemicals 2/................| 132.2   132.4   132.3     2.5    -.1      2.4      .1     -.1
 06-4       |   Fats and oils, inedible 2/..........................| 146.4   122.2   127.5    -3.9    4.3    -12.4     5.1     4.3
 06-51      |   Mixed fertilizers...................................| 113.2   113.7   113.6    -2.1    -.1      -.9      .3      .1
 06-52-01   |   Nitrogenates........................................| 140.5   140.2   136.4     7.0   -2.7      3.8     -.1      .1
 06-52-02   |   Phosphates 2/.......................................| 111.6   111.5   109.7    -5.9   -1.6      0       -.6    -1.6
 06-53      |   Other agricultural chemicals........................| 144.9   145.7   145.7      .3    0         .7     1.3      .2
 06-6       |   Plastic resins and materials 2/.....................| 137.5   139.2   139.5     5.6     .2       .1      .1      .2
 07-11-02   |   Synthetic rubber 2/.................................| 121.1   119.5   119.2    -2.3    -.3     -1.0     -.1     -.3
 07-21      |   Plastic construction products 2/....................| 128.1   129.7   128.3    -2.6   -1.1       .5      .6    -1.1
 07-22      |   Unsupported plastic film, sheet, & other shapes.....| 132.3   131.8   132.1      .1     .2       .5      .4      .3
 07-26      |   Plastic parts and components for manufacturing 2/...| 117.5   117.4   117.1     -.5    -.3      -.1     0       -.3
 08-11      |   Softwood lumber 2/..................................| 209.5   217.7   211.8     7.6   -2.7      2.2     1.3    -2.7
 08-12      |   Hardwood lumber 2/..................................| 169.7   173.1   173.8     6.3     .4       .9      .6      .4
 08-2       |   Millwork 2/.........................................| 170.3   171.2   171.1     2.6    -.1       .2      .2     -.1
 08-3       |   Plywood 2/..........................................| 158.8   158.3   162.5     4.3    2.7     -3.0     -.4     2.7
 09-11      |   Woodpulp 2/.........................................| 125.2   122.6   124.9     4.1    1.9     -2.9      .6     1.9
 09-13      |   Paper 2/............................................| 140.9   142.4   143.0    -3.6     .4      1.2      .6      .4
 09-14      |   Paperboard..........................................| 144.2   137.0   137.8    -8.5     .6     -2.7     1.2      .7
 09-15-03   |   Paper boxes and containers 2/.......................| 146.3   142.4   141.1    -7.4    -.9     -2.2      .1     -.9
 09-2       |   Building paper and board 2/.........................| 130.9   128.6   129.8    -4.5     .9     -1.1     -.8      .9
 09-37      |   Commercial printing (June 1982=100) 2/..............| 147.8   147.8   147.9     -.5     .1      0       -.1      .1
 10-15      |   Foundry and forge shop products.....................| 134.0   134.1   134.1     1.1    0        -.1     0        .1
 10-17      |   Steel mill products 2/..............................| 116.1   116.2   116.4      .7     .2       .3     -.1      .2
 10-22      |   Primary nonferrous metals 2/........................| 127.6   129.7   132.2    -3.4    1.9     -1.7      .5     1.9
 10-25-01   |   Aluminum mill shapes 2/.............................| 144.1   146.2   148.2      .7    1.4       .3     -.5     1.4
 10-25-02   |   Copper and brass mill shapes 2/.....................| 178.5   182.4   186.8     3.3    2.4     -1.5      .2     2.4
 10-26      |   Nonferrous wire and cable 2/........................| 147.9   150.9   151.0     1.1     .1       .2      .5      .1
 10-3       |   Metal containers 2/.................................| 108.0   107.8   107.6    -1.7    -.2      -.4     -.1     -.2
 10-4       |   Hardware............................................| 144.7   145.4   145.7     1.4     .2       .5      .1      .1
 10-5       |   Plumbing fixtures and brass fittings................| 174.3   175.1   175.2     2.0     .1       .1      .2      .2
 10-6       |   Heating equipment...................................| 152.0   152.3   152.5      .9     .1       .3      .1      .3
 10-7       |   Fabricated structural metal products................| 139.1   140.2   140.3     1.7     .1       .2      .4     0
 10-88      |   Fabricated ferrous wire products (June 1982=100) 2/.| 127.1   127.3   127.3      .1    0         .2     0       0
 10-89      |   Other misc. metal products 2/.......................| 126.3   126.2   126.1      .4    -.1      0       0       -.1
 11-45      |   Mechanical power transmission equipment.............| 154.4   154.9   154.9     2.2    0        0        .3     0
 11-48      |   Air conditioning and refrigeration equipment........| 132.3   132.7   132.7      .2    0         .3      .1     -.1
 11-49-02   |   Metal valves, ex.fluid power (Dec. 1982=100) 2/.....| 151.9   153.1   153.8     2.4     .5       .5     -.1      .5
 11-49-05   |   Ball and roller bearings............................| 161.0   163.5   163.4     3.8    -.1       .8      .2      .1
 11-71      |   Wiring devices......................................| 152.7   153.9   154.8     2.1     .6       .5      .4      .5
 11-73      |   Motors, generators, motor generator sets............| 144.4   144.7   144.5    -1.1    -.1       .1      .1     0
 11-75      |   Switchgear, switchboard, etc., equipment............| 144.6   144.7   145.5     2.0     .6       .1      .3      .8
 11-78      |   Electronic components and accessories 2/............| 106.0   104.6   104.6    -3.1    0        -.2     -.9     0
 11-94      |   Internal combustion engines.........................| 139.7   139.7   139.9      .8     .1       .1      .1      .1
 11-95      |   Machine shop products 2/............................| 134.9   134.9   135.1     1.7     .1       .2     0        .1
 13-11      |   Flat glass 2/.......................................| 108.7   108.3   108.2    -1.0    -.1      -.1     -.1     -.1
 13-22      |   Cement..............................................| 136.7   140.1   139.6     3.4    -.4       .7     -.4     -.1
 13-3       |   Concrete products...................................| 135.2   136.1   136.2     2.3     .1       .1      .6      .1
 13-6       |   Asphalt felts and coatings 2/.......................|  99.9   100.5   101.0     1.7     .5       .8      .3      .5
 13-7       |   Gypsum products 2/..................................| 168.3   173.7   172.1    13.0    -.9      1.2     1.9     -.9
 13-8       |   Glass containers 2/.................................| 126.0   125.9   125.9    -2.9    0        0       0       0
 14-12      |   Motor vehicle parts 2/..............................| 115.7   115.3   115.4     -.7     .1      0       0        .1
 14-23      |   Aircraft engines & engine parts (Dec. 1985=100).....| 136.9   135.3   135.4     1.0     .1       .9    -1.9     -.1
 14-25      |   Aircraft parts & aux.equip.,nec (June 1985=100) 2/..| 141.4   140.8   140.7      .9    -.1      -.1      .4     -.1
 15-42      |   Photographic supplies 2/............................| 129.3   127.8   127.3    -1.9    -.4      0      -1.2     -.4
 15-6       |   Medical/surgical/personal aid devices...............| 142.9   142.9   143.1     -.2     .1       .5     -.9      .2
            |                                                       |
            | CRUDE MATERIALS FOR FURTHER PROCESSING................| 116.1   110.6   107.2    -5.4   -3.1      -.9     1.3    -3.3
            |                                                       |
            |  CRUDE FOODSTUFFS AND FEEDSTUFFS......................| 111.0   117.4   111.5   -13.6   -5.0      3.3     -.3    -5.4
            |                                                       |
 01-21      |   Wheat 2/............................................| 112.4   115.2   110.1   -29.3   -4.4      7.5    -5.3    -4.4
 01-22-02-05|   Corn................................................| 108.4   114.7   110.4   -43.9   -3.7     -3.9    -3.1    -4.6
 01-31      |   Slaughter cattle....................................|  94.0   101.6    94.4     1.7   -7.1      5.0      .7    -6.9
 01-32      |   Slaughter hogs......................................|  87.4   100.2    95.6     1.0   -4.6     19.2     2.3    -6.7
 01-41-02   |   Slaughter broilers/fryers...........................| 140.1   135.4   138.4   -17.5    2.2     13.5   -10.3     3.0
 01-42      |   Slaughter turkeys...................................|  99.8   119.2   119.4     -.7     .2      8.1     5.3    -1.1
 01-6       |   Fluid milk..........................................|  97.8    95.8    93.2   -13.7   -2.7      -.7    -3.5    -3.3
 01-83-01-31|   Soybeans............................................| 127.1   149.8   140.0     6.4   -6.5     -3.5     5.1    -5.2
 02-52-01-01|   Cane sugar,raw 2/...................................| 115.1   115.8   115.8    -2.4    0        -.3     -.3     0
 
            |                                                       |
            |  CRUDE NONFOOD MATERIALS..............................| 115.2   102.1   100.5     1.8   -1.6     -4.1     2.5    -1.6
            |                                                       |
 01-51-01-01|   Raw cotton..........................................| 116.7   115.5   116.8   -14.4    1.1    -10.2     1.2      .7
 01-92-01-01|   Leaf tobacco 2/.....................................| 120.8     (3)     (3)     (3)    (3)      (3)     (3)     (3)
 04-11      |   Cattle hides 2/.....................................| 209.4   207.9   197.9     9.2   -4.8       .1    -1.9    -4.8
 05-1       |   Coal 2/.............................................|  94.6    94.9    97.7     2.8    3.0      5.2    -6.4     3.0
 05-31      |   Natural gas 2/......................................| 119.9    85.2    88.0    11.5    3.3    -13.3     5.8     3.3
 05-61      |   Crude petroleum 2/..................................|  64.5    60.2    51.7   -10.4  -14.1      -.4     7.3   -14.1
 08-5       |   Logs, timber, etc. 2/...............................| 215.9   216.4   216.2     7.3    -.1      0        .6     -.1
 09-12      |   Wastepaper 2/.......................................| 157.5   164.7   163.4    27.1    -.8     -7.6     6.9     -.8
 10-11      |   Iron ore 2/.........................................|  99.7    95.2    95.2      .6    0        0      -4.5     0
 10-12      |   Iron and steel scrap 2/.............................| 191.1   185.0   186.3    -4.4     .7     -3.2     2.7      .7
 10-21      |   Nonferrous metal ores (Dec. 1983=100) 2/............|  84.8    84.9    88.9    -3.8    4.7     -5.1     1.7     4.7
 10-23-01   |   Copper base scrap 2/................................| 164.6   172.2   174.1     3.8    1.1     -2.5     4.4     1.1
 10-23-02   |   Aluminum base scrap.................................| 195.5   199.3   197.4    13.1   -1.0     -2.1     4.8     -.9
 13-21      |   Construction sand, gravel, and crushed stone........| 147.0   148.2   148.3     1.9     .1       .1      .3      .1
 ____________________________________________________________________________________________________________________________________
 
 1/  The indexes for February 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 4 months after original
     publication.
 
 
 
 
 
 Table 3.  Producer Price Indexes for selected commodity groupings
 (1982=100 unless otherwise indicated)
 _______________________________________________________________________________________________
          |                                                |                                   |
          |                                                |         Unadjusted index 1/       |
 Commodity|                                                |___________________________________|
   code   |                    Grouping                    | Feb. 1997 |  May 1997 | June 1997 |
 _________|________________________________________________|___________|___________|___________|
          |                                                |           |           |           |
          | Finished Goods (1967=100)......................|   371.1   |   369.0   |   369.4   |
          | All commodities................................|   128.5   |   127.3   |   127.2   |
          |                                                |           |           |           |
          |                                                |           |           |           |
          |            MAJOR COMMODITY GROUPS              |           |           |           |
          |                                                |           |           |           |
          | Farm products and processed foods and feeds....|   126.3   |   129.3   |   126.9   |
 01       |   Farm products................................|   113.0   |   117.3   |   111.7   |
 02       |   Processed foods and feeds....................|   132.9   |   135.3   |   134.4   |
          |                                                |           |           |           |
          | Industrial commodities.........................|   128.9   |   126.9   |   127.2   |
 03       |   Textile products and apparel.................|   122.5   |   122.5   |   122.6   |
 04       |   Hides, skins, leather, and related products..|   156.2   |   156.5   |   154.6   |
 05       |   Fuels and related products and power 2/......|    90.3   |    83.3   |    84.4   |
 06       |   Chemicals and allied products 2/.............|   143.8   |   143.8   |   143.7   |
 07       |   Rubber and plastic products..................|   123.1   |   123.4   |   123.0   |
 08       |   Lumber and wood products.....................|   183.4   |   186.1   |   185.2   |
 09       |   Pulp, paper, and allied products.............|   167.1   |   166.1   |   166.4   |
 10       |   Metals and metal products....................|   131.6   |   132.2   |   132.7   |
 11       |   Machinery and equipment......................|   126.3   |   125.9   |   125.9   |
 12       |   Furniture and household durables.............|   130.9   |   131.1   |   131.1   |
 13       |   Nonmetallic mineral products.................|   132.5   |   133.4   |   133.4   |
 14       |   Transportation equipment.....................|   142.8   |   141.3   |   141.2   |
 15       |   Miscellaneous products.......................|   148.9   |   150.3   |   150.6   |
          |                                                |           |           |           |
          | Industrial commodities less fuels and related  |           |           |           |
          |   products and power...........................|   139.2   |   139.1   |   139.1   |
          |                                                |           |           |           |
          |                                                |           |           |           |
          |             OTHER COMMODITY GROUPINGS          |           |           |           |
          |                                                |           |           |           |
 01-1     | Fruits and melons, fresh and dry vegetables,   |           |           |           |
          |   and tree nuts................................|   122.8   |   115.9   |   105.0   |
 01-2     | Grains.........................................|   111.0   |   116.6   |   112.4   |
 01-3     | Slaughter livestock............................|    93.8   |   102.6   |    96.2   |
 01-4     | Slaughter poultry..............................|   130.2   |   130.9   |   133.4   |
 01-5     | Plant and animal fibers........................|   116.5   |   116.0   |   117.5   |
 01-7     | Chicken eggs...................................|   129.4   |   106.2   |    97.4   |
 01-8     | Hay, hayseeds, and oilseeds....................|   149.6   |   170.6   |   161.1   |
 01-83    | Oilseeds.......................................|   137.0   |   159.1   |   149.8   |
 01-9     | Other farm products............................|   180.2   |  'N.A.'   |  'N.A.'   |
 02-1     | Cereal and bakery products.....................|   158.4   |   158.6   |   158.2   |
 02-2     | Meats, poultry, and fish.......................|   116.7   |   121.2   |   119.2   |
 02-22    | Processed poultry..............................|   118.3   |   117.0   |   117.4   |
 02-5     | Sugar and confectionery........................|   138.4   |   138.5   |   138.2   |
 02-6     | Beverages and beverage materials...............|   135.2   |   138.8   |   139.4   |
 02-63    | Packaged beverage materials....................|   126.9   |   154.2   |   158.9   |
 02-7     | Fats and oils..................................|   127.8   |   130.9   |   129.6   |
 03-81    | Apparel........................................|   125.4   |   125.4   |   125.4   |
 04-4     | Other leather and related products.............|   142.3   |   143.3   |   143.6   |
 05-3     | Gas fuels 2/...................................|   113.9   |    81.4   |    83.8   |
 05-4     | Electric power.................................|   128.4   |   129.3   |   136.3   |
 05-7     | Refined petroleum products.....................|    72.9   |    67.7   |    66.5   |
 06-3     | Drugs and pharmaceuticals......................|   218.2   |   219.7   |   219.5   |
 06-5     | Agricultural chemicals and products............|   133.8   |   134.0   |   132.6   |
 06-7     | Other chemicals and allied products............|   132.6   |   133.2   |   133.4   |
 07-1     | Rubber and rubber products.....................|   116.1   |   116.1   |   115.8   |
 07-11    | Rubber, except natural rubber..................|   120.4   |   118.8   |   118.6   |
 07-13    | Miscellaneous rubber products..................|   137.5   |   137.9   |   138.0   |
 07-2     | Plastic products...............................|   129.7   |   130.1   |   129.7   |
 08-1     | Lumber.........................................|   195.3   |   202.0   |   198.1   |
 09-1     | Pulp, paper, and products, excluding building  |           |           |           |
          |   paper and board..............................|   144.1   |   142.0   |   142.5   |
 09-15    | Converted paper and paperboard products........|   149.5   |   146.2   |   146.7   |
 10-1     | Iron and steel.................................|   126.6   |   126.0   |   126.2   |
 10-2     | Nonferrous metals..............................|   137.0   |   138.9   |   140.5   |
 10-25    | Nonferrous mill shapes.........................|   143.0   |   144.8   |   147.1   |
 11-3     | Metalworking machinery and equipment...........|   144.6   |   145.3   |   145.3   |
 11-4     | General purpose machinery and equipment........|   144.0   |   145.0   |   145.1   |
 11-6     | Special industry machinery.....................|   156.1   |   156.5   |   156.8   |
 11-7     | Electrical machinery and equipment.............|   122.9   |   122.4   |   122.6   |
 11-9     | Miscellaneous machinery and equipment..........|   130.3   |   130.7   |   130.7   |
 12-6     | Other household durable goods..................|   149.3   |   150.2   |   150.2   |
 13-2     | Concrete ingredients...........................|   140.7   |   142.7   |   142.6   |
 14-1     | Motor vehicles and equipment...................|   134.5   |   132.6   |   132.4   |
 15-1     | Toys, sporting goods, small arms, etc..........|   130.9   |   130.9   |   131.2   |
 15-4     | Photographic equipment and supplies............|   118.6   |   117.5   |   117.0   |
 15-9     | Other miscellaneous products...................|   133.2   |   133.4   |   133.4   |
 __________________________________________________________|___________|___________|___________|
 
 1/  Data for  Feb. 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_June_1997_from:__
     code          |                                              |base |       |       |       |        |
                   |                                              |     |Feb.   |May    |June   |  June  |  May
                   |                                              |     |1997 2/|1997 2/|1997 2/|  1996  |  1997
 __________________|______________________________________________|_____|_______|_______|_______|________|___________
                   |                                              |     |
                   |Total mining industries...................... |12/84|  95.1    81.2    79.7     2.0    -1.8
        10         | Metal mining................................ |12/84|  88.5    87.9    90.9    -2.6     3.4
        12         | Coal mining................................. |12/85|  91.3    91.9    93.1     1.5     1.3
        13         | Oil and gas extraction...................... |12/85|  99.6    80.9    78.5     3.4    -3.0
        14         | Mining and quarrying of non-metallic         |     |
                   |  minerals, except fuels..................... |12/84| 127.7   128.3   128.8      .5      .4
                   |                                              |     |
                   |Total manufacturing industries............... |12/84| 127.9   127.6   127.3      .2     -.2
        20         | Food and kindred products................... |12/84| 127.1   128.8   128.4      .6     -.3
        21         | Tobacco manufactures........................ |12/84| 201.2   209.5   209.8     4.4      .1
        22         | Textile mill products....................... |12/84| 118.8   118.9   118.9      .8     0
        23         | Apparel and other finished products made     |     |
                   |  from fabrics and similar materials......... |12/84| 122.9   123.0   123.1      .5      .1
        24         | Lumber and wood products, except furniture.. |12/84| 158.2   160.3   159.8     3.4     -.3
        25         | Furniture and fixtures...................... |12/84| 137.6   138.0   137.9     1.5     -.1
        26         | Paper and allied products................... |12/84| 133.5   131.0   131.7    -4.0      .5
        27         | Printing, publishing, and allied industries. |12/84| 168.1   168.4   168.3     1.8     -.1
        28         | Chemicals and allied products............... |12/84| 146.8   147.1   146.9      .6     -.1
        29         | Petroleum refining and related products..... |12/84|  91.2    85.5    83.7    -4.1    -2.1
        30         | Rubber and miscellaneous plastic products... |12/84| 122.8   122.9   122.7     -.2     -.2
        31         | Leather and leather products................ |12/84| 137.3   137.2   136.9     1.9     -.2
        32         | Stone, clay, glass, and concrete products... |12/84| 126.9   127.7   127.6     1.7     -.1
        33         | Primary metal industries.................... |12/84| 124.0   125.1   125.5      .7      .3
        34         | Fabricated metal products, except machinery  |     |
                   |  and transportation equipment............... |12/84| 127.0   127.4   127.5     1.0      .1
        35         | Machinery, except electrical................ |12/84| 119.0   118.7   118.6     -.4     -.1
        36         | Electrical and electronic machinery,         |     |
                   |  equipment, and supplies.................... |12/84| 112.2   111.7   112.0     -.9      .3
        37         | Transportation equipment.................... |12/84| 135.4   134.0   133.8     -.4     -.1
        38         | Measuring and controlling instruments;       |     |
                   |  photographic, medical, optical goods;       |     |
                   |  watches, clocks............................ |12/84| 125.4   125.4   125.2      .2     -.2
        39         | Miscellaneous manufacturing industries...... |12/85| 128.7   128.8   128.9      .9      .1
                   |                                              |     |
                   |Services industries                           |     |
        40         | Railroad transportation..................... |12/96| 100.0   100.1   100.4     (3)      .3
        42         | Motor freight transportation and warehousing |06/93| 108.5   108.6   109.0     2.0      .4
        43         | United states postal service................ |06/89| 132.3   132.3   132.3     0       0
        44         | Water transportation........................ |12/92| 104.2   104.6   104.5     1.6     -.1
        45         | Transportation by air....................... |12/92| 128.9   125.8   126.4     4.1      .5
        46         | Pipe lines, except natural gas.............. |12/86|  98.8    98.9    98.9    -4.6     0
        80         | Health services............................. |12/94| 105.8   106.0   106.1     1.5      .1
        81         | Legal services.............................. |12/96| 101.9   101.9   102.2     (3)      .3
 ____________________________________________________________________________________________________________________
 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 Feb. 1997 have been recalculated to incorporate late reports and corrections by respondents.
    All indexes are subject to revision 4 months after original publication.
 3/ Not available.
Table 5.  Producer Price Indexes by stage of processing, seasonally adjusted
(1982=100)
________________________________________________________________________________________________________________
                                                       |      
                                                       |                      Index 1/   
                                                       |________________________________________________________
               Grouping                                |         |        |        |        |        |        
                                                       |   Jan.  |  Feb.  |  Mar.  |  Apr.  |  May.  |  June    
                                                       |   1997  |  1997  |  1997  |  1997  |  1997  |  1997  
_______________________________________________________|_________|________|________|________|________|__________
      Finished goods...................................|   133.0    132.6    132.4    131.6    131.2    131.1
        Finished consumer goods........................|   131.6    131.1    130.8    129.9    129.4    129.4
          Finished consumer foods......................|   134.6    134.1    135.3    134.7    135.2    134.0
            Crude......................................|   130.8    134.1    139.3    120.9    124.7    116.6
            Processed..................................|   134.8    134.1    134.9    135.6    136.0    135.3
          Finished consumer goods, excluding foods.....|   130.2    129.7    128.7    127.8    126.8    127.2
            Nondurable goods less foods................|   126.8    126.1    124.6    123.4    122.4    123.0
            Durable goods..............................|   134.4    134.5    134.6    134.4    133.6    133.6
        Capital equipment..............................|   138.6    138.5    138.9    138.3    138.0    138.1
          Manufacturing industries.....................|   137.7    137.8    137.8    137.7    137.5    137.6
          Nonmanufacturing industries..................|   138.9    138.7    139.2    138.5    138.1    138.2
                                                       |  
      Intermediate materials, supplies, and components.|   126.6    126.4    125.9    125.5    125.3    125.3
        Materials and components for manufacturing.....|   128.4    128.4    128.4    128.3    128.3    128.4
          Materials for food manufacturing.............|   123.6    123.2    124.3    124.2    123.8    122.7
          Materials for nondurable manufacturing.......|   130.1    129.8    129.3    129.0    129.2    129.2
          Materials for durable manufacturing..........|   131.9    132.5    133.4    133.3    133.5    133.9
          Components for manufacturing.................|   126.8    126.7    126.5    126.6    126.4    126.4
        Materials and components for construction......|   145.0    145.7    146.1    146.5    147.1    147.0
        Processed fuels and lubricants.................|    95.2     94.3     90.3     88.6     86.7     87.4
          Manufacturing industries ....................|    97.9     96.3     92.4     90.8     89.0     89.0
          Nonmanufacturing industries..................|    93.4     93.0     89.0     87.1     85.3     86.3
        Containers.....................................|   137.9    137.0    136.8    134.8    134.9    134.3 
        Supplies.......................................|   135.4    135.4    135.9    136.0    136.2    135.9
          Manufacturing industries.....................|   138.7    138.8    139.0    139.0    139.0    138.9
          Nonmanufacturing industries..................|   133.7    133.6    134.2    134.5    134.8    134.4
            Feeds......................................|   126.9    127.4    132.7    134.6    137.3    134.1
            Other supplies.............................|   134.7    134.5    134.5    134.5    134.4    134.5
                                                       |   
      Crude materials for further processing...........|   126.7    116.2    110.0    109.0    110.4    106.8
        Foodstuffs and feedstuffs......................|   113.1    111.5    113.6    117.3    117.0    110.7
        Nonfood materials..............................|   131.0    115.1    103.7     99.5    102.0    100.4
          Nonfood materials except fuel 2/.............|   112.9    107.9    103.7    103.3    104.7    101.1
            Manufacturing 2/...........................|   104.6     99.4     95.2     94.7     96.2     92.4
            Construction...............................|   200.6    201.5    201.6    201.3    202.5    202.5
          Crude fuel 3/................................|   149.8    116.6     93.9     83.6     87.7     89.7
            Manufacturing industries...................|   141.6    112.0     91.9     82.7     86.4     88.0
            Nonmanufacturing industries................|   153.9    119.3     95.6     84.9     89.2     91.3
                                                       |  
                     Special groupings                 |   
                                                       |   
      Finished goods, excluding foods..................|   132.4    132.0    131.5    130.6    129.9    130.2
      Intermediate materials less foods and feeds......|   126.7    126.6    125.8    125.4    125.1    125.3
      Intermediate foods and feeds.....................|   125.0    124.9    127.3    127.8    128.4    126.6
      Crude materials less agricultural products 2/....|   131.3    114.8    103.1     99.0    101.6     99.9
                                                       |   
      Finished energy goods............................|    88.4     87.3     84.5     82.3     80.6     81.2
      Finished goods less energy.......................|   140.2    140.1    140.6    140.3    140.2    140.0
      Finished consumer goods less energy..............|   140.9    140.6    141.3    141.0    141.0    140.7
                                                       |   
      Finished goods less foods and energy.............|   142.5    142.4    142.7    142.5    142.1    142.3
      Finished consumer goods less foods and energy....|   144.8    144.8    145.1    145.1    144.7    144.9
      Consumer nondurable goods less foods and energy..|   152.3    152.1    152.6    152.8    152.7    153.2
                                                       |   
      Intermediate energy goods........................|    94.9     94.1     90.1     88.3     86.6     87.1
      Intermediate materials less energy...............|   133.5    133.5    133.7    133.7    133.8    133.7
      Intermediate materials less foods and energy.....|   134.0    134.1    134.1    134.1    134.1    134.2
                                                       |   
      Crude energy materials 2/........................|   119.4     98.0     83.0     78.7     81.4     79.0
      Crude materials less energy......................|   124.2    123.5    125.1    126.7    127.0    122.7
      Crude nonfood materials less energy 3/...........|   156.7    158.4    158.7    155.0    156.9    157.5
______________________________________________________________________________________________________________

  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 February 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.