FOR DATA ONLY:  (202) 691-5200      USDL 04-1763
FOR TECHNICAL INFORMATION:          TRANSMISSION OF MATERIAL IN
(202) 691-7705                      THIS RELEASE IS EMBARGOED
MEDIA CONTACT:  (202) 691-5902      UNTIL 8:30 A.M. (EDT), FRIDAY,
http://www.bls.gov/ppi              SEPTEMBER 10, 2004
                                     
                   Producer Price Indexes -- August 2004

     The Producer Price Index for Finished Goods declined 0.1 percent in
August, seasonally adjusted, the Bureau of Labor Statistics of the U.S.
Department of Labor reported today.  This decrease followed a 0.1-percent
advance in July and a 0.3-percent decline in June.  At the earlier stages
of processing, prices received by manufacturers of intermediate goods
jumped 1.0 percent in August, after a 0.8-percent gain in the preceding
month, while the crude goods index fell 0.7 percent, compared with a 0.2-
percent decrease in July.  (See table A.)

Table A.  Monthly and annual percent changes in selected stage-of-processing price
indexes, seasonally adjusted
 ______________________________________________________________________________________
|        |                                                         |         |         |
|        |                   Finished goods                        |         |         |
|        |                                                         |         |         |
|        |---------------------------------------------------------|         |         |
|        |          |          |          |         |  Change in   |         |         |
|        |          |          |          | Except  |finished goods| Inter-  |         |
|        |          |          |          |foods and|from 12 months| mediate |  Crude  |
| Month  |  Total   |  Foods   |  Energy  | energy  |  ago(unadj.) | goods   |  goods  |
|--------------------------------------------------------------------------------------|
 2003                                                    
  Aug.        0.5        0.8        1.4       0.1         3.5          0.6      -1.0
  Sept.        .2        1.2        -.1         0         3.5          -.1       2.7
  Oct.         .6        2.0        -.4        .5         3.4           .3       2.8
  Nov.        -.1        -.3        -.7         0         3.4            0         0
  Dec.         .2         .2        1.4       -.1         4.0           .4       3.4
                                                                              
 2004                                                                          
  Jan.         .6       -1.3        4.7        .3         3.3           .9       4.1
  Feb.         .1         .4         .3       -.1         2.1          1.0       1.5
  Mar.         .6        1.5         .6        .3         1.5           .8       1.6
  Apr.       r .7      r 1.3      r 1.8      r .1         3.7        r 1.4     r 1.8
  May        r .7      r 1.4      r 1.4      r .4         5.0         r .9     r 1.8
  June        -.3        -.6       -1.6        .2         4.0           .5       1.6
  July         .1       -1.6        2.3        .1         4.0           .8       -.2
  Aug.        -.1        -.2         .2       -.1         3.4          1.0       -.7
r=revised.  Some of the figures shown above and elsewhere in this release may differ 
from those previously reported because data for April 2004 have been revised to 
reflect the availability of late reports and corrections by respondents.

                                    -2-
                                     
     Among finished goods, prices for both finished goods other than foods
and energy and finished consumer foods edged down in August -- falling 0.1
and 0.2 percent, respectively.  By contrast, the finished energy goods
index moved up 0.2 percent in August.

     Before seasonal adjustment, the Producer Price Index for Finished
Goods decreased 0.1 percent in August to 148.6 (1982=100).  From August
2003 to August 2004, the finished goods index rose 3.4 percent.  Over the
same period, prices for finished energy goods climbed 9.9 percent, the
index for finished consumer foods increased 4.0 percent, and prices for
finished goods other than foods and energy advanced 1.5 percent.  At the
earlier stages of processing, the index for intermediate goods moved up 8.1
percent, and prices for crude goods rose 22.4 percent for the 12-month
period ended August 2004.

Finished goods

     The index for finished consumer goods other than foods and energy
decreased 0.2 percent in August, after inching up 0.1 percent in July.  The
light motor trucks index fell 2.5 percent, after showing no change in July,
while passenger car prices declined 1.2 percent in August, compared with a
0.4-percent decrease a month earlier.  The indexes for cosmetics and other
toilet preparations, sanitary papers and health products, and household
appliances fell, following increases in July.  Prices for book publishing,
periodical circulation, and men's and boys' apparel were unchanged in
August, after rising in the preceding month.  By contrast, the alcoholic
beverages index jumped 1.3 percent, compared with a 0.1-percent increase in
July.  Prices for pharmaceutical preparations also rose at a quicker pace
in August than they did in July.  The indexes for women's, girls', and
infants' apparel and for household furniture turned up, after falling in
July.

Table B.  Monthly and annual percent changes in selected price indexes for 
intermediate goods and crude goods, seasonally adjusted
 __________________________________________________________________________________
|      |                                     |                                     |
|      |       Intermediate goods            |       Crude goods                   |
|      |                                     |                                     |
|      |---------------------------------------------------------------------------|
|      |       |        |         |Change in |       |         |         | Change  |
|      |       |        |         | interme- |       |         |         |in crude |
|      |       |        |         |  diate   |       |         |         | goods   |
|      |       |        |         |goods from|       |         |         | from 12 |
|      |       |        | Except  |12 months |       |         | Except  | months  |
|      |       |        |foods and|   ago    |       | Energy  |foods and|  ago    |
|Month | Foods | Energy | energy  | (unadj.) | Foods | (unadj.)| energy  |(unadj.) |
|----------------------------------------------------------------------------------|
 2003                                                            
  Aug.     0.2      2.4      0.1       4.4       3.7     -6.1       2.0      20.8
  Sept.    2.7     -2.0       .2       3.7       7.0     -1.1       2.7      21.5
  Oct.     2.7      -.2       .3       3.4       8.5     -2.8       3.0      22.6
  Nov.     2.6     -1.3       .1       3.4       -.6     -1.3       4.3      18.0
  Dec.     -.3      1.4       .2       3.9        .3      7.0       3.0      19.5
                                                                         
 2004                                                                    
  Jan.    -1.3      2.9       .6       3.9      -6.8     15.3       3.7      16.1
  Feb.     1.3       .7       .9       2.8       4.3     -2.8       6.1      12.0
  Mar.     2.5       .4       .8       1.5       6.9     -3.7       2.8        .5
  Apr.   r 4.7    r 1.8    r 1.1     r 5.4     r 3.3    r 3.8    r -4.3    r 21.6
  May    r 2.8    r 1.5     r .7       7.1     r 2.9    r 4.1    r -4.9      21.9
  June    -2.2       .7       .5       6.9      -3.6      7.7       -.5      18.9
  July    -1.4      2.3       .5       7.6      -4.8       .2       8.6      22.2
  Aug.    -5.2      2.7      1.0       8.1      -4.6      -.1       4.5      22.4
r=revised.  Some of the figures shown above and elsewhere in this release may 
differ from those previously reported because data for April 2004 have been 
revised to reflect the availability of late reports and corrections by 
respondents.

                                    -3-

     The finished consumer foods index fell 0.2 percent in August, after a
1.6-percent drop in July.  The rate of decline in prices for beef and veal
slowed to 3.2 percent in August from 8.3 percent in the previous month.
The dairy products index also fell less in August than it did in July.
Prices for fresh and dry vegetables, soft drinks, and shortening and
cooking oils moved up in August, after falling a month earlier.  The pork
index increased at a faster rate than it did in the preceding month.
Conversely, processed young chicken prices dropped 7.1 percent in August,
compared with a 1.1-percent decrease in July.  The index for eggs for fresh
use and the index for fresh fruits and melons also went down more than they
did in the preceding month, while price increases for finfish and shellfish
slowed in August.
     
     Capital equipment prices inched down 0.1 percent in August, compared
with a 0.1-percent rise in July.  The light motor trucks index fell 2.5
percent in August, after showing no change in the previous month.  The
indexes for passenger cars, electronic computers, and x-ray and
electromedical equipment decreased at a faster rate than they did a month
earlier.  Prices for semiconductor manufacturing equipment turned down in
August.  On the other hand, prices for communication and related equipment
increased 0.2 percent in August, following a 0.7-percent decline in the
preceding month.  The indexes for commercial furniture, heavy motor trucks,
and integrating and measuring instruments also turned up, after falling in
July.
     
     The finished energy goods index advanced 0.2 percent in August,
following a 2.3-percent gain in the prior month.  In August, rising prices
for liquefied petroleum gas, residential natural gas, home heating oil,
residential electric power, and diesel fuel slightly outweighed falling
prices for gasoline and finished lubricants.

Intermediate goods

     The Producer Price Index for Intermediate Materials, Supplies, and
Components rose 1.0 percent in August, after posting a 0.8-percent gain in
the previous month.  Prices for materials and components for construction,
materials for nondurable manufacturing, intermediate energy goods, and
materials for durable manufacturing also rose at a faster rate than they
did in July.  On the other hand, the intermediate foods and feeds index
fell more in August than it did a month earlier.  Prices for intermediate
goods other than foods and energy advanced 1.0 percent, following a 0.5-
percent increase in the prior month.  (See table B.)
     
     Subsequent to a 0.2-percent increase in July, the index for materials
and components for construction moved up 1.4 percent in August.  Plywood
prices turned up 13.7 percent in August, after falling 11.1 percent in the
preceding month, and the softwood lumber index increased 8.1 percent,
compared with a 1.9-percent decrease in July.  The indexes for building
paper and board, treated wood, and air conditioning and refrigeration
equipment also rose, following declines in July.  Prices for fabricated
structural metal products, concrete products, and plastic construction
products increased more than they did in the previous month.  By contrast,
the mineral wool for structural insulation index edged down 0.1 percent in
August, compared with a 5.6-percent rise a month earlier.  Prices for
plumbing fixtures and brass fittings also turned down, while the indexes
for fabricated ferrous wire products and switchgear rose less than they did
in July.  Prices for asphalt felts and coatings showed no change in August,
after posting an increase in the prior month.
     
     The rate of increase in the index for materials for nondurable
manufacturing rose from 1.0 percent in July to 1.7 percent in August.
Accounting for much of this acceleration, the industrial chemicals index
jumped 5.7 percent, following a 1.6-percent gain in July.  Prices for
fertilizer materials and paint materials also increased more than they did
in the preceding month, while paper prices turned up in August.
Alternatively, the paperboard index fell 0.4 percent in August, after
climbing 5.5 percent in the previous month.  Prices for inedible fats and
oils, processed yarns and threads, and synthetic fibers also turned down,
following increases in the prior month.  The medicinal and botanical
chemicals index declined at a quicker rate in August than it did a month
earlier, while prices for plastic resins and materials rose less than they
did in July.
     
                                    -4-

     The intermediate energy goods index went up 2.7 percent in August,
following a 2.3-percent gain in the prior month.  Industrial electric power
prices turned up 3.0 percent, after falling 1.2 percent in the preceding
month.  The indexes for commercial electric power and residual fuel also
advanced, following decreases in July.  Prices for industrial natural gas,
liquefied petroleum gas, and commercial natural gas rose more quickly in
August than they did in the previous month.  On the other hand, the
gasoline index dropped 5.0 percent in August, after moving up 5.4 percent
in the preceding month.  The indexes for natural gas to electric utilities,
jet fuels, and diesel fuel increased at a slower rate than they did in
July.

     A 10.3-percent increase in the index for hot rolled steel bars,
plates, and structural shapes was the most important factor behind a 1.1-
percent gain in the index for materials for durable manufacturing in
August.  Price increases were also registered for plywood, cold rolled
steel sheet and strip, building paper and board, cold finished steel bars,
cement, and aluminum mill shapes.  By contrast, the indexes for primary
nonferrous metals, unprocessed filament yarns, and copper and brass mill
shapes declined in August.

     The intermediate foods and feeds index moved down 5.2 percent in
August, compared with a 1.4-percent decline in the preceding month.  Prices
for prepared animal feeds plunged 10.1 percent, after rising 2.3 percent in
July.  Confectionery material prices also turned down in August, while the
indexes for processed young chickens; flour; and dry, condensed, and
evaporated milk products fell more than they did in the prior month.  On
the other hand, the beef and veal index went down 3.2 percent in August,
following an 8.3-percent drop in the previous month.  Prices for fluid milk
products also decreased less than they did in July.  The indexes for
natural, processed, and imitation cheese and for shortening and cooking
oils turned up, following declines a month earlier, and the index for pork
rose more than it did in July.
     
Crude goods

     The Producer Price Index for Crude Materials for Further Processing
fell 0.7 percent in August, after edging down 0.2 percent in July.  In
August, declining prices for crude foodstuffs and feedstuffs and for crude
energy materials outweighed rising prices for crude goods other than foods
and energy.  (See table B.)
     
     The crude foodstuffs and feedstuffs index decreased 4.6 percent in
August, following a 4.8-percent decline in July.  Falling prices for
soybeans, fluid milk, corn, slaughter broilers and fryers, wheat, and fresh
fruits and melons outweighed price increases for fresh and dry vegetables,
slaughter cattle, slaughter hogs, unprocessed finfish, and slaughter
turkeys.
     
     The August index for crude energy materials inched down 0.1 percent,
following a 0.2-percent gain a month earlier.  Natural gas prices dropped
6.7 percent, after slipping 2.0 percent in the preceding month.
Conversely, the crude petroleum index advanced 12.5 percent, compared with
a 5.3-percent increase in July.  Coal prices turned up 0.1 percent,
following a 0.9-percent drop in the prior month.
                                     
     Price increases for basic industrial materials slowed from July to
August -- rising 8.6 and 4.5 percent, respectively.  The iron and steel
scrap index increased 7.7 percent in August, following a 32.2-percent surge
in July.  The indexes for construction sand, gravel, and crushed stone;
aluminum base scrap; copper base scrap; and hides and skins also rose less
rapidly in August.   Prices for gold ores turned down, after moving up in
the previous month.  By contrast, falling prices for raw cotton slowed in
August, declining 3.0 percent after sliding 15.5 percent a month earlier.
The indexes for phosphates, iron ore, and for hardwood logs, bolts, and
timber turned up, following declines in the prior month.  Wastepaper prices
rose more quickly in August than they did in July.

                                    -5-

Net output price indexes for mining, manufacturing, and services industries

Mining.  The Producer Price Index for the Net Output of Total Mining
Industries advanced 1.3 percent in August, after rising 0.9 percent in
July.  (Net output price indexes are not seasonally adjusted.)  Much of
this acceleration can be attributed to prices received by the natural gas
liquid extraction industry, which turned up 2.2 percent following a 0.3-
percent decrease in July.  The industry indexes for bituminous coal and
lignite surface mining; potash, soda, and borate mineral mining; and iron
ore mining also turned up in August.  Prices received by the oil and gas
well drilling industry rose more in August than they did in the prior
month, while the bituminous coal and lignite underground mining industry
index increased, after showing no change in July.  By contrast, the crude
petroleum and natural gas extraction industry index increased 0.3 percent,
after rising 1.5 percent in July.  Prices for oil and gas operations
support activities also advanced less than they did in the previous month,
while the industry indexes for gold ore mining and support activities for
coal mining fell, following increases in July.  In August 2004, the
Producer Price Index for the Net Output of Total Mining Industries was
157.2 (December 1984=100), 25.3 percent above its year-ago level.

Manufacturing.  The Producer Price Index for the Net Output of Total
Manufacturing Industries rose 0.2 percent in August, compared with a 0.3-
percent increase in the prior month.  In August, price increases received
by the industries for petroleum and coal products, furniture and related
products, chemicals, plastics and rubber products, and primary metals
outweighed falling prices received by manufacturers of food products,
transportation equipment, and computer and electronic products.  In August,
the Producer Price Index for the Net Output of Total Manufacturing
Industries was 143.7 (December 1984=100), 4.9 percent above its year-ago
level.

Services.  Among services industries in August, prices turned down for
general medical and surgical hospitals, hotels (excluding casino hotels)
and motels, software publishers, and scheduled freight air transportation.
The rate of increase in the indexes for direct life insurance carriers,
passenger car rental, and nonresidential property managers slowed from July
to August.  Alternatively, the industry indexes for scheduled passenger air
transportation, investment banking and securities dealing, and wired
telecommunications carriers turned up in August, after falling in July.


                                   *****
Producer Price Index data for September 2004 are scheduled to be released
on Friday, October 15, 2004, at 8:30 a.m. (EDT).



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|                       |Aug. 2004 from:|                          
                                                 |          |_______________________|_______________|__________________________
                                                 |   Dec.   |       |       |       |       |       |       |         |        
                                                 |          |Apr.   |July   |Aug.   |  Aug. | July  | May to|June  to |July  to
                                                 |   2003 1/|2004 2/|2004 2/|2004 2/|  2003 | 2004  |  June |   July  |  Aug.  
_________________________________________________|__________|_______|_______|_______|_______|_______|_______|_________|________
                                                 |                                                                             
Finished goods...................................|  100.000   147.3   148.7   148.6     3.4   -0.1     -0.3      0.1    -0.1   
  Finished consumer goods........................|   74.422   150.4   152.0   151.9     4.1    -.1      -.5       .1     -.1   
    Finished consumer foods......................|   21.487   152.7   152.1   152.2     4.0     .1      -.6     -1.6     -.2   
      Crude......................................|    1.731   130.8   114.4   125.7    -2.0    9.9    -10.9       .8     7.2   
      Processed..................................|   19.756   154.5   155.3   154.4     4.5    -.6       .1     -1.8     -.6   
    Finished consumer goods, excluding foods.....|   52.934   149.1   151.7   151.4     4.1    -.2      -.4       .7     -.1   
      Nondurable goods less foods................|   36.883   154.3   157.9   158.0     5.3     .1      -.8      1.1      .2   
      Durable goods..............................|   16.051   134.4   134.6   133.7     1.4    -.7       .5      0       -.7   
  Capital equipment..............................|   25.578   140.6   141.2   141.1     1.4    -.1       .2       .1     -.1   
    Manufacturing industries.....................|    7.016   141.9   142.6   142.7     2.0     .1       .4       .1     0     
    Nonmanufacturing industries..................|   18.562   140.1   140.6   140.4     1.2    -.1       .2      0       -.1   
                                                 |                                                                             
Intermediate materials, supplies, and components.|  100.000   140.2   143.8   144.9     8.1     .8       .5       .8     1.0   
  Materials and components for manufacturing.....|   46.892   136.2   138.6   139.6     7.6     .7       .5       .4      .7   
    Materials for food manufacturing.............|    2.948   146.6   147.9   145.4     7.3   -1.7      -.1     -3.0    -1.9   
    Materials for nondurable manufacturing.......|   14.491   143.5   147.1   149.5     8.7    1.6       .7      1.0     1.7   
    Materials for durable manufacturing..........|    9.515   144.3   149.4   151.0    18.4    1.1      1.1      1.0     1.1   
    Components for manufacturing.................|   19.939   127.1   127.8   128.1     1.8     .2       .2       .2      .2   
  Materials and components for construction......|   12.827   164.7   167.8   170.0    10.6    1.3       .7       .2     1.4   
  Processed fuels and lubricants.................|   16.978   118.4   126.5   128.5    12.2    1.6       .7      2.4     3.0   
    Manufacturing industries ....................|    6.840   120.0   127.1   128.2     8.6     .9      2.6      1.1     3.2   
    Nonmanufacturing industries..................|   10.138   117.4   126.2   128.7    14.6    2.0      -.3      3.2     2.7   
  Containers.....................................|    3.164   154.9   159.5   161.4     5.1    1.2       .8       .9     1.2   
  Supplies.......................................|   20.138   146.4   148.1   147.5     4.5    -.4       .1       .5     -.3   
    Manufacturing industries.....................|    4.389   147.9   149.4   149.6     1.9     .1       .5       .3      .2   
    Nonmanufacturing industries..................|   15.750   144.8   146.5   145.7     5.1    -.5      -.1       .5     -.5   
      Feeds......................................|    1.238   134.3   131.5   115.1    13.4  -12.5     -6.8      2.7   -12.6   
      Other supplies.............................|   14.512   146.7   148.9   149.7     4.5     .5       .5       .4      .5   
                                                 |                                                                             
Crude materials for further processing...........|  100.000   155.7   162.0   160.7    22.4    -.8      1.6      -.2     -.7   
  Foodstuffs and feedstuffs......................|   39.856   135.4   131.0   124.7    11.8   -4.8     -3.6     -4.8    -4.6   
  Nonfood materials..............................|   60.144   166.6   181.3   183.9    28.9    1.4      5.1      2.7     1.3   
    Nonfood materials except fuel 3/.............|   33.348   141.4   146.7   158.1    35.0    7.8     -2.5      7.1     7.6   
      Manufacturing 3/...........................|   32.735   130.3   135.3   146.0    35.6    7.9     -2.6      7.2     7.8   
      Construction...............................|    0.613   190.1   194.2   194.2     7.9    0        1.4       .9      .1   
    Crude fuel 4/................................|   26.796   191.8   221.5   208.4    21.7   -5.9     14.6     -1.9    -5.9   
      Manufacturing industries...................|    2.406   182.6   209.8   197.7    21.3   -5.8     14.1     -1.9    -5.8   
      Nonmanufacturing industries................|   24.390   196.1   226.6   213.1    21.7   -6.0     14.6     -1.9    -6.0   
                                                 |                                                                             
               Special groupings                 |                                                                             
                                                 |                                                                             
Finished goods, excluding foods..................|5/ 78.513   145.7   147.6   147.4     3.3    -.1      -.2       .5     -.1   
Intermediate materials less foods and feeds......|6/ 95.814   140.2   144.0   145.4     8.0    1.0       .6       .9     1.3   
Intermediate foods and feeds.....................|6/  4.186   143.2   143.2   136.0     8.8   -5.0     -2.2     -1.4    -5.2   
Crude materials less agricultural products 3/ 7/.|8/ 58.184   170.4   186.2   188.2    30.0    1.1      5.4      2.9     1.0   
                                                 |                                                                             
Finished energy goods............................|5/ 15.868   109.5   115.1   115.1     9.9    0       -1.6      2.3      .2   
Finished goods less energy.......................|5/ 84.132   151.9   152.1   151.9     2.2    -.1      0        -.4     -.1   
Finished consumer goods less energy..............|5/ 58.554   156.9   156.8   156.6     2.5    -.1      -.2      -.5     -.2   
                                                 |                                                                             
Finished goods less foods and energy.............|5/ 62.645   152.1   152.4   152.2     1.5    -.1       .2       .1     -.1   
Finished consumer goods less foods and energy....|5/ 37.066   159.8   160.0   159.7     1.6    -.2       .1       .1     -.2   
Consumer nondurable goods less foods and energy..|5/ 21.015   180.5   180.5   180.8     1.7     .2      -.2       .2      .2   
                                                 |                                                                             
Intermediate energy goods........................|6/ 17.379   117.3   125.4   127.1    11.2    1.4       .7      2.3     2.7   
Intermediate materials less energy...............|6/ 82.621   144.4   146.8   147.7     7.4     .6       .5       .4      .6   
Intermediate materials less foods and energy.....|6/ 78.435   144.6   147.1   148.5     7.3    1.0       .5       .5     1.0   
                                                 |                                                                             
Crude energy materials 3/........................|8/ 39.753   158.8   178.3   178.1    27.5    -.1      7.7       .2     -.1   
Crude materials less energy......................|8/ 60.248   148.7   146.5   144.5    18.7   -1.4     -2.6      -.5    -1.2   
Crude nonfood materials less energy 4/...........|8/ 20.391   187.6   191.6   200.9    32.3    4.9      -.5      8.6     4.5   
_______________________________________________________________________________________________________________________________
                                                                                                                               
  1/  Comprehensive relative importance figures are initially computed          4/  Excludes crude petroleum.                  
      after the publication of December indexes and are recalculated            5/  Percent of total finished goods.           
      after final December indexes are available.                               6/  Percent of total intermediate materials.   
  2/  The indexes for April 2004 have been recalculated to incorporate          7/  Formerly titled "Crude materials for       
      late reports and corrections by respondents.  All indexes                     further processing, excluding crude        
      are subject to revision 4 months after original publication.                  foodstuffs and feedstuffs, plant and       
  3/  Includes crude petroleum.                                                     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 |                                                       |                       |Aug. 2004 from:|                         
   code    |                      Grouping                         |_______________________|_______________|________________________ 
           |                                                       |       |       |       |       |       |       |       |         
           |                                                       |Apr.   |July   |Aug.   | Aug.  | July  | May to|June to|July to  
           |                                                       |2004 1/|2004 1/|2004 1/| 2003  | 2004  |  June |  July |  Aug.   
___________|_______________________________________________________|_______|_______|_______|_______|_______|_______|_______|________ 
           |                                                       |                                                                 
           |FINISHED GOODS.........................................| 147.3   148.7   148.6     3.4   -0.1     -0.3     0.1    -0.1   
           | FINISHED CONSUMER GOODS...............................| 150.4   152.0   151.9     4.1    -.1      -.5      .1     -.1   
           |  FINISHED CONSUMER FOODS..............................| 152.7   152.1   152.2     4.0     .1      -.6    -1.6     -.2   
           |                                                       |                                                                 
01-11      |   Fresh fruits and melons 2/..........................|  90.5    95.5    94.4     9.9   -1.2     -8.1     -.2    -1.2   
01-13      |   Fresh and dry vegetables 2/.........................| 123.6    88.7   116.9    -6.2   31.8    -24.0    -2.8    31.8   
01-71-07   |   Eggs for fresh use (Dec. 1991=100)..................| 110.5    82.8    82.4   -28.0    -.5     -8.6    -7.9   -13.0   
02-11      |   Bakery products 2/..................................| 195.1   195.5   196.0      .4     .3      -.1     -.1      .3   
02-13      |   Milled rice 2/......................................| 136.8   147.1   145.8    37.4    -.9      1.0     -.4     -.9   
02-14-02   |   Pasta products (June 1985=100) 2/...................| 126.4   126.4   126.4     -.3    0        0        .2     0     
02-21-01   |   Beef and veal 2/....................................| 144.7   142.5   138.0     1.3   -3.2      2.0    -8.3    -3.2   
02-21-04   |   Pork................................................| 126.1   139.0   140.3    19.5     .9       .9      .6     1.7   
02-22-03   |   Processed young chickens............................| 146.1   149.1   140.0    12.8   -6.1     -1.4    -1.1    -7.1   
02-22-06   |   Processed turkeys...................................| 104.2   107.8   107.9    20.2     .1      -.7    -2.8      .6   
02-23      |   Finfish and shellfish...............................| 201.2   196.5   206.8     6.3    5.2     -5.5     6.9     5.3   
02-3       |   Dairy products......................................| 162.5   159.7   155.1     7.8   -2.9     -3.3    -6.2    -4.1   
02-4       |   Processed fruits and vegetables 2/..................| 134.1   134.4   134.8     1.0     .3       .4      .1      .3   
02-55      |   Confectionery end products 2/.......................| 186.8   187.4   187.5     1.8     .1      -.1      .1      .1   
02-62      |   Soft drinks 2/......................................| 156.9   157.1   158.5     4.1     .9      2.5    -1.3      .9   
02-63-01   |   Roasted coffee 2/...................................| 129.0   129.2   129.4     1.3     .2      -.3    -1.6      .2   
02-78      |   Shortening and cooking oils 2/......................| 202.5   196.3   202.1    29.1    3.0      -.8    -1.9     3.0   
           |                                                       |                                                                 
           |  FINISHED CONSUMER GOODS EXCLUDING FOODS..............| 149.1   151.7   151.4     4.1    -.2      -.4      .7     -.1   
           |                                                       |                                                                 
02-61      |   Alcoholic beverages.................................| 154.8   151.4   153.2     3.0    1.2     -2.6      .1     1.3   
03-81-06   |   Women's, girls', & infants' apparel (12/03=100) 2/..| 100.2    99.5    99.7     (3)     .2      -.4     -.4      .2   
03-81-07   |   Men's and boys' apparel (Dec. 2003=100) 2/..........|  99.9    99.5    99.5     (3)    0       -1.0      .3     0     
03-82      |   Textile housefurnishings 2/.........................| 123.4   123.3   123.1      .6    -.2      0        .2     -.2   
04-3       |   Footwear 2/.........................................| 146.2   146.2   146.3    -1.1     .1      -.1      .4      .1   
05-41      |   Residential electric power (Dec. 1990=100)..........| 119.6   123.3   123.9     -.2     .5     -2.9      .2      .5   
05-51      |   Residential gas (Dec. 1990=100).....................| 175.7   184.8   185.0     8.8     .1      3.1     1.2     1.1   
05-71      |   Gasoline............................................| 126.1   135.2   128.3    20.6   -5.1     -5.2     5.4    -5.0   
05-73-02-01|   Home heating oil and distillates....................| 109.8   115.0   126.7    38.3   10.2      3.7     5.9     7.8   
06-38      |   Pharmaceutical preparations (June 2001=100) 2/......| 112.0   112.6   113.0     4.9     .4       .4      .1      .4   
06-71      |   Soaps and synthetic detergents 2/...................| 132.4   132.5   132.5     1.8    0        0        .1     0     
06-75      |   Cosmetics and other toilet preparations 2/..........| 140.8   141.4   140.3     -.1    -.8      0        .4     -.8   
07-12      |   Tires, tubes, tread, etc 2/.........................| 101.9   103.7   103.6     5.7    -.1      1.9     -.9     -.1   
09-15-01   |   Sanitary paper products 2/..........................| 146.8   149.1   148.6    -1.1    -.3       .1      .7     -.3   
09-31-01   |   Newspaper circulation 2/............................| 232.8   232.8   232.8     1.3    0        0       0       0     
09-32-01   |   Periodical circulation..............................| 223.6   223.1   223.2     1.6    0        0        .6     0     
09-33      |   Book publishing.....................................| 250.7   252.5   252.7     3.4     .1       .3      .7     0     
12-1       |   Household furniture.................................| 159.0   160.6   160.9     1.7     .2       .6     -.1      .4   
12-3       |   Floor coverings 2/..................................| 132.8   137.4   139.1     3.2    1.2      1.6      .3     1.2   
12-4       |   Household appliances 2/.............................| 101.5   101.6   101.2     -.7    -.4      -.5      .4     -.4   
12-5       |   Home electronic equipment 2/........................|  65.5    64.2    64.2    -4.9    0        -.2    -1.8     0     
12-62      |   Household glassware.................................| 171.3   171.4   168.7     -.2   -1.6     -1.2     1.2    -1.6   
12-64      |   Household flatware 2/...............................| 145.4   145.4   145.4      .1    0        (3)     (3)     0     
12-66      |   Lawn and garden equip., ex. tractors 2/.............| 134.1   134.3   134.9     1.5     .4       .5      .1      .4   
14-11-01   |   Passenger cars......................................| 131.5   130.8   128.8     1.7   -1.5      1.1     -.4    -1.2   
15-11      |   Toys, games, and children's vehicles 2/.............| 124.7   124.5   126.1      .8    1.3      0       -.2     1.3   
15-12      |   Sporting and athletic goods 2/......................| 122.8   123.0   123.3     0       .2      -.3      .2      .2   
15-2       |   Tobacco products 2/.................................| 434.3   434.0   433.5     1.0    -.1       .3      .2     -.1   
15-5       |   Mobile homes .......................................|   (3)   188.1   188.3    11.0     .1      (3)     (3)      .1   
15-94-02   |   Jewelry, platinum, & karat gold 2/..................| 135.5   135.3   135.2     2.3    -.1       .7      .2     -.1   
15-94-04   |   Costume jewelry and novelties 2/....................| 147.5   147.8   147.8     1.7    0        1.4      .2     0     
           |                                                       |                                                                 
           | CAPITAL EQUIPMENT.....................................| 140.6   141.2   141.1     1.4    -.1       .2      .1     -.1   
           |                                                       |                                                                 
11-1       |   Agricultural machinery and equipment 2/.............| 164.2   166.2   166.1     2.7    -.1       .4      .1     -.1   
11-2       |   Construction machinery and equipment 2/.............| 156.7   158.8   159.1     3.7     .2      0       1.1      .2   
11-37      |   Metal cutting machine tools 2/......................| 150.9   151.4   151.9      .8     .3       .3      .1      .3   
11-38      |   Metal forming machine tools 2/......................| 170.7   172.4   172.4     2.8    0         .5      .1     0     
11-39      |   Tools, dies, jigs, fixtures, and ind. molds 2/......| 139.2   139.1   139.2     0       .1       .1     0        .1   
11-41      |   Pumps, compressors, and equipment...................| 165.8   167.5   168.1     3.0     .4       .5      .1      .4   
11-44      |   Industrial material handling equipment 2/...........| 142.5   144.4   144.5     4.6     .1       .4      .3      .1   
11-51      |   Electronic computers (Dec. 1998=100) 2/.............|  31.0    30.1    29.6   -11.4   -1.7     -1.3     -.7    -1.7   
11-62      |   Textile machinery 2/................................| 157.8   157.9   157.9      .3    0         .1     0       0     
11-64      |   Paper industries machinery (June 1982=100) 2/.......| 173.8   174.0   174.2     2.3     .1       .1     0        .1   
11-65      |   Printing trades machinery 2/........................| 143.0   143.7   143.7      .3    0        -.1      .3     0     
11-74      |   Transformers and power regulators 2/................| 132.3   135.6   136.2     2.9     .4      -.7      .4      .4   
11-76      |   Communication & related equip. (Dec. 1985=100) 2/...| 103.3   102.7   102.9    -1.9     .2     -1.3     -.7      .2   
11-79-05   |   X-ray and electromedical equipment 2/...............|  97.7    97.4    96.5    -4.5    -.9      -.9     -.4     -.9   
11-91      |   Oil field and gas field machinery ..................| 143.4   143.4   143.6     2.5     .1       .1     -.1      .3   
11-92      |   Mining machinery and equipment 2/...................| 162.2   164.3   164.2     5.9    -.1       .2      .6     -.1   
11-93      |   Office and store machines and equipment 2/..........| 113.1   113.5   113.6     1.2     .1       .3      .4      .1   
12-2       |   Commercial furniture 2/.............................| 164.2   165.2   166.8     2.6    1.0      1.4     -.7     1.0   
14-11-05   |   Light motor trucks..................................| 150.4   149.7   146.3      .2   -2.3       .9     0      -2.5   
14-11-06   |   Heavy motor trucks 2/...............................| 154.7   155.1   156.3     1.4     .8       .4     -.1      .8   
14-14      |   Truck trailers 2/...................................| 146.3   148.6   149.0     6.7     .3       .4      .1      .3   
14-21-02   |   Civilian aircraft (Dec. 1985=100)...................| 185.5   191.3   194.0     5.6    1.4      1.6     1.4     1.4   
14-31      |   Ships (Dec. 1985=100) 2/............................| 171.2   171.2   171.2     8.2    0        -.2      .2     0     
14-4       |   Railroad equipment 2/...............................| 142.8   144.2   145.4     6.5     .8       .4     1.0      .8   
           |                                                       |                                                                 
           |INTERMEDIATE MATERIALS, SUPPLIES, AND COMPONENTS.......| 140.2   143.8   144.9     8.1     .8       .5      .8     1.0   
           |                                                       |                                                                 
           | INTERMEDIATE FOODS AND FEEDS..........................| 143.2   143.2   136.0     8.8   -5.0     -2.2    -1.4    -5.2   
           |                                                       |                                                                 
02-12-03   |   Flour 2/............................................| 127.0   129.0   125.0     -.2   -3.1      5.5    -1.0    -3.1   
02-53      |   Refined sugar and byproducts 2/.....................| 120.4   120.9   121.6    -1.3     .6       .3      .7      .6   
02-54      |   Confectionery materials 2/..........................| 125.1   126.9   126.1     1.4    -.6      -.1     1.4     -.6   
02-72      |   Crude vegetable oils 2/.............................|   (3)     (3)     (3)     (3)    (3)      (3)     (3)     (3)   
02-9       |   Prepared animal feeds 2/............................| 137.8   135.6   121.9    12.2  -10.1     -5.7     2.3   -10.1   
           |                                                       |                                                                 
           | INTERMEDIATE MATERIALS LESS FOODS AND FEEDS...........| 140.2   144.0   145.4     8.0    1.0       .6      .9     1.3   
           |                                                       |                                                                 
03-1       |   Synthetic fibers 2/.................................| 105.7   106.8   106.6      .1    -.2      -.3      .8     -.2   
03-2       |   Processed yarns and threads 2/......................| 107.7   109.5   109.3     5.5    -.2       .5     1.1     -.2   
03-3       |   Gray fabrics 2/.....................................| 112.5   114.9   114.8     3.1    -.1      1.8      .3     -.1   
03-4       |   Finished fabrics 2/.................................| 120.3   120.9   121.0     -.1     .1       .1      .2      .1   
03-83-03   |   Industrial textile products 2/......................| 131.4   132.0   132.0     1.1    0         .4     0       0     
04-2       |   Leather 2/..........................................| 220.5   220.7   220.6     4.1    0       -1.1      .3     0     
05-32      |   Liquefied petroleum gas 2/..........................| 164.3   190.4   216.9    51.4   13.9      0       6.7    13.9   
____________________________________________________________________________________________________________________________________ 
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 |                                                       |                       |Aug. 2004 from:|                         
   code    |                      Grouping                         |_______________________|_______________|________________________ 
           |                                                       |       |       |       |       |       |       |       |         
           |                                                       |Apr.   |July   |Aug.   | Aug.  | July  | May to|June to|July to  
           |                                                       |2004 1/|2004 1/|2004 1/| 2003  | 2004  |  June |  July |  Aug.   
___________|_______________________________________________________|_______|_______|_______|_______|_______|_______|_______|________ 
           |                                                       |                                                                 
           | INTERMEDIATE MATERIALS LESS FOODS AND FEEDS           |                                                                 
           |   -Continued..........................................|                                                                 
05-42      |   Commercial electric power...........................| 138.3   146.8   149.4    -0.6    1.8     -1.1    -0.8     1.2   
05-43      |   Industrial electric power...........................| 143.1   149.6   153.9     1.7    2.9       .1    -1.2     3.0   
05-52      |   Commercial natural gas (Dec. 1990=100)..............| 186.0   197.7   197.1    14.3    -.3      4.9     1.7     2.4   
05-53      |   Industrial natural gas (Dec. 1990=100)..............| 192.4   206.7   203.0    14.0   -1.8      6.7     2.7     3.7   
05-54      |   Natural gas to electric utilities (Dec. 1990=100)...| 166.0   180.9   169.4    17.1   -6.4     14.1     3.0     1.4   
05-72-03   |   Jet fuels...........................................|  93.4   111.7   128.6    59.2   15.1     -9.8    16.0    15.1   
05-73-03   |   No. 2 Diesel fuel...................................| 119.9   123.2   135.0    39.8    9.6     -3.7     8.1     7.6   
05-74      |   Residual fuels 2/...................................|  93.1    89.2    99.7   -17.9   11.8      5.7    -7.9    11.8   
06-1       |   Industrial chemicals 2/.............................| 154.1   158.9   167.9    19.5    5.7      1.4     1.6     5.7   
06-21      |   Prepared paint......................................| 174.0   175.8   175.8     2.3    0         .1      .7      .1   
06-22      |   Paint materials 2/..................................| 178.0   179.4   181.1     4.9     .9      -.3      .8      .9   
06-31      |   Medicinal and botanical chemicals 2/................| 135.0   136.2   134.6     -.4   -1.2       .3     -.2    -1.2   
06-4       |   Fats and oils, inedible.............................| 170.0   156.7   144.1    30.3   -8.0    -17.9     4.4    -5.8   
06-51      |   Mixed fertilizers...................................| 127.2   126.4   127.5     6.5     .9      -.6      .5     1.3   
06-52-01   |   Nitrogenates........................................| 165.4   166.0   170.8    17.4    2.9      4.5     4.2     5.3   
06-52-02   |   Phosphates 2/.......................................| 123.5   116.7   118.4     7.1    1.5     -2.5    -2.2     1.5   
06-53      |   Other agricultural chemicals 2/.....................| 149.1   149.7   149.3      .5    -.3       .3     -.1     -.3   
06-6       |   Plastic resins and materials 2/.....................| 154.8   160.8   161.6    12.5     .5      1.7      .8      .5   
07-11-02   |   Synthetic rubber 2/.................................| 127.9   131.3   133.8     6.6    1.9       .7      .2     1.9   
07-21      |   Plastic construction products ......................| 142.4   145.4   146.7     6.6     .9      0        .4     1.0   
07-22      |   Unsupported plastic film, sheet, & other shapes 2/..| 145.1   148.0   149.2     4.2     .8      1.8      .3      .8   
07-26      |   Plastic parts and components for manufacturing 2/...| 116.5   116.2   116.3     -.3     .1      -.3     -.3      .1   
08-11      |   Softwood lumber 2/..................................| 214.6   216.1   233.5    35.8    8.1     -2.9    -1.9     8.1   
08-12      |   Hardwood lumber 2/..................................| 198.4   199.9   201.6     5.3     .9       .3     -.1      .9   
08-2       |   Millwork............................................| 190.0   194.4   195.0     7.0     .3       .8      .2      .3   
08-3       |   Plywood 2/..........................................| 222.6   178.6   203.1    22.1   13.7    -10.5   -11.1    13.7   
09-11      |   Woodpulp 2/.........................................| 128.2   135.8   137.3    12.0    1.1      3.2     2.5     1.1   
09-13      |   Paper 2/............................................| 147.0   148.1   149.8     2.3    1.1       .5     -.1     1.1   
09-14      |   Paperboard 2/.......................................| 162.2   180.7   180.0    10.8    -.4      3.0     5.5     -.4   
09-15-03   |   Paper boxes and containers 2/.......................| 171.2   176.8   180.3     4.5    2.0       .7     1.0     2.0   
09-2       |   Building paper and board 2/.........................| 219.2   179.0   194.0    14.5    8.4     -8.6   -11.6     8.4   
09-37      |   Commercial printing (June 1982=100) 2/..............| 159.2   159.6   159.7      .8     .1      -.1      .3      .1   
10-15      |   Foundry and forge shop products.....................| 141.8   143.5   144.8     5.2     .9       .6      .2      .9   
10-17      |   Steel mill products.................................| 139.1   155.9   158.8    46.5    1.9      6.2     1.9     1.8   
10-22      |   Primary nonferrous metals 2/........................| 133.4   135.7   133.8    29.0   -1.4      -.9     5.5    -1.4   
10-25-01   |   Aluminum mill shapes 2/.............................| 146.7   154.4   154.7     7.9     .2      1.3      .4      .2   
10-25-02   |   Copper and brass mill shapes 2/.....................| 204.4   202.6   202.4    33.6    -.1     -1.0     1.8     -.1   
10-26      |   Nonferrous wire and cable 2/........................| 153.8   151.8   151.9    12.5     .1       .3     -.1      .1   
10-3       |   Metal containers 2/.................................| 114.6   116.5   116.6     6.8     .1      1.0     -.4      .1   
10-4       |   Hardware 2/.........................................| 160.2   161.9   161.9     3.3    0         .1      .7     0     
10-5       |   Plumbing fixtures and brass fittings................| 185.4   189.0   188.8     2.7    -.1       .7      .8     -.3   
10-6       |   Heating equipment 2/................................| 167.0   169.9   170.6     4.5     .4       .1      .4      .4   
10-7       |   Fabricated structural metal products 2/.............| 159.5   166.7   169.5    16.7    1.7      1.4     1.2     1.7   
10-88      |   Fabricated ferrous wire products (June 1982=100) 2/.| 145.7   157.1   157.3    19.4     .1      2.2     3.5      .1   
10-89      |   Other misc. metal products 2/.......................| 130.5   132.7   133.1     4.4     .3      1.3      .1      .3   
11-45      |   Mechanical power transmission equipment.............| 176.8   181.1   181.2     6.2     .1      1.0     1.1      .2   
11-48      |   Air conditioning and refrigeration equipment 2/.....| 138.8   138.6   139.9     2.3     .9      -.1     -.1      .9   
11-49-02   |   Metal valves, ex.fluid power (Dec. 1982=100)........| 174.4   177.7   178.7     5.3     .6       .4      .6      .6   
11-49-05   |   Ball and roller bearings 2/.........................| 176.2   178.9   178.7     4.3    -.1      1.2     -.1     -.1   
11-71      |   Wiring devices 2/...................................| 168.5   173.1   173.4    13.2     .2      0       -.1      .2   
11-73      |   Motors, generators, motor generator sets............| 148.5   151.2   151.0     2.5    -.1      1.2      .2     -.2   
11-75      |   Switchgear, switchboard, etc., equipment............| 162.9   164.5   164.6     3.0     .1       .4     1.0      .2   
11-78      |   Electronic components and accessories 2/............|  89.6    89.7    89.6    -1.1    -.1      -.3      .1     -.1   
11-94      |   Internal combustion engines 2/......................| 145.7   145.9   145.7      .1    -.1      0        .1     -.1   
11-95      |   Machine shop products 2/............................| 143.8   144.9   145.6     3.6     .5       .3      .8      .5   
13-11      |   Flat glass 2/.......................................| 108.5   108.4   108.6    -2.1     .2      -.3      .4      .2   
13-22      |   Cement..............................................| 154.0   155.8   159.4     4.8    2.3      -.1      .2     2.3   
13-3       |   Concrete products...................................| 158.4   160.2   161.6     5.2     .9       .8      .4      .9   
13-6       |   Asphalt felts and coatings..........................| 116.5   118.1   117.9     -.1    -.2     -1.9     1.4     0     
13-7       |   Gypsum products 2/..................................| 188.0   205.0   209.3    23.6    2.1      4.3     2.9     2.1   
13-8       |   Glass containers 2/.................................| 143.8   144.3   144.3     2.3    0        -.1      .2     0     
14-12      |   Motor vehicle parts 2/..............................| 111.5   112.0   112.4      .6     .4      -.1     0        .4   
14-23      |   Aircraft engines & engine parts (Dec. 1985=100).....| 162.8   161.7   163.6     6.6    1.2       .1      .3     1.6   
14-25      |   Aircraft parts & aux.equip.,nec (June 1985=100) 2/..| 152.0   150.4   150.4     -.1    0        -.3     0       0     
15-42      |   Photographic supplies 2/............................| 115.3   115.3   115.3     -.9    0       -1.4     0       0     
15-6       |   Medical/surgical/personal aid devices 2/............| 157.7   158.1   157.2     1.6    -.6      -.1      .2     -.6   
           |                                                       |                                                                 
           | CRUDE MATERIALS FOR FURTHER PROCESSING................| 155.7   162.0   160.7    22.4    -.8      1.6     -.2     -.7   
           |                                                       |                                                                 
           |  CRUDE FOODSTUFFS AND FEEDSTUFFS......................| 135.4   131.0   124.7    11.8   -4.8     -3.6    -4.8    -4.6   
           |                                                       |                                                                 
01-21      |   Wheat 2/............................................| 110.8   103.8    95.3    -3.1   -8.2     -4.1    -2.4    -8.2   
01-22-02   |   Corn 2/.............................................| 121.9    97.6    91.2     2.7   -6.6     -5.4   -11.6    -6.6   
01-31      |   Slaughter cattle 2/.................................| 130.2   126.8   128.2     9.5    1.1       .2    -3.4     1.1   
01-32      |   Slaughter hogs......................................|  79.9    97.9    97.9    34.1    0       -4.7     4.6     3.2   
01-41-02   |   Slaughter broilers/fryers...........................| 196.7   211.1   195.2    26.9   -7.5      4.1    -5.3    -4.0   
01-42      |   Slaughter turkeys...................................| 110.7   126.1   131.1    43.1    4.0      2.6     3.3     1.5   
01-6       |   Fluid milk..........................................| 136.8   121.1   112.9    14.0   -6.8    -10.1   -13.5   -10.8   
01-83-01-31|   Soybeans 2/.........................................| 165.9   153.7    99.1     2.6  -35.5    -13.5     -.5   -35.5   
02-52-01-03|   Cane sugar, raw (Dec. 2003=100) 2/..................| 100.4    99.5    97.9     (3)   -1.6     -3.7     2.8    -1.6   
           |                                                       |                                                                 
           |  CRUDE NONFOOD MATERIALS..............................| 166.6   181.3   183.9    28.9    1.4      5.1     2.7     1.3   
           |                                                       |                                                                 
01-51      |   Raw cotton 2/.......................................|  88.4    74.3    72.1   -15.2   -3.0    -13.6   -15.5    -3.0   
01-92      |   Leaf tobacco 2/.....................................|  38.8     (3)   100.8    -5.5    (3)      (3)     (3)     (3)   
04-1       |   Hides and skins (June 2001=100) 2/..................| 180.0   189.7   192.7     4.3    1.6       .2     5.4     1.6   
05-1       |   Coal 2/.............................................| 111.1   108.7   108.8     9.9     .1       .1     -.9      .1   
05-31      |   Natural gas 2/......................................| 218.7   259.6   242.1    23.9   -6.7     17.0    -2.0    -6.7   
05-61      |   Crude petroleum 2/..................................|  98.4   104.8   117.9    40.7   12.5     -5.5     5.3    12.5   
08-5       |   Logs, timber, etc...................................| 191.1   196.0   194.5     7.3    -.8      2.5     1.1    -1.0   
09-12      |   Wastepaper 2/.......................................| 231.3   234.2   237.0    21.1    1.2       .5      .8     1.2   
10-11      |   Iron ore 2/.........................................|  96.9    98.3    98.4     2.0     .1      0      -1.7      .1   
10-12      |   Iron and steel scrap................................| 302.6   334.5   366.4   100.0    9.5       .6    32.2     7.7   
10-21      |   Nonferrous metal ores (Dec. 1983=100) 2/............| 112.4   111.8   118.9    50.7    6.4       .8     4.9     6.4   
10-23-01   |   Copper base scrap 2/................................| 196.7   183.3   186.0    46.9    1.5     -5.5     3.3     1.5   
10-23-02   |   Aluminum base scrap.................................| 204.8   190.5   191.7    14.9     .6      -.6     3.7     2.5   
13-21      |   Construction sand, gravel, and crushed stone........| 182.4   184.1   184.1     3.8    0         .2      .8      .2   
____________________________________________________________________________________________________________________________________ 
                                                                                                                                     
1/  The indexes for April 2004 have been recalculated to incorporate                 2/  Not seasonally adjusted.                    
    late reports and corrections by respondents.  All indexes are subject            3/  Not available.                              
    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                    |April 2004 | July 2004 | Aug. 2004 |
_________|________________________________________________|___________|___________|___________|
         |                                                |           |           |           |
         | Finished Goods (1967=100)......................|   413.5   |   417.3   |   416.9   |
         | All commodities................................|   144.8   |   147.6   |   147.9   |
         |                                                |           |           |           |
         |                                                |           |           |           |
         |            MAJOR COMMODITY GROUPS              |           |           |           |
         |                                                |           |           |           |
         | Farm products and processed foods and feeds....|   145.6   |   143.5   |   140.5   |
01       |   Farm products................................|   129.6   |   123.2   |   118.7   |
02       |   Processed foods and feeds....................|   153.3   |   153.5   |   151.4   |
         |                                                |           |           |           |
         | Industrial commodities.........................|   144.8   |   148.4   |   149.3   |
03       |   Textile products and apparel.................|   120.5   |   120.9   |   120.8   |
04       |   Hides, skins, leather, and related products..|   163.1   |   164.6   |   165.1   |
05       |   Fuels and related products and power.........|   120.4   |   129.4   |   130.1   |
06       |   Chemicals and allied products 2/.............|   170.1   |   172.8   |   175.9   |
07       |   Rubber and plastic products..................|   132.0   |   133.6   |   134.0   |
08       |   Lumber and wood products.....................|   197.7   |   196.5   |   202.5   |
09       |   Pulp, paper, and allied products.............|   193.9   |   196.2   |   197.1   |
10       |   Metals and metal products....................|   146.5   |   152.5   |   154.6   |
11       |   Machinery and equipment......................|   122.0   |   122.4   |   122.5   |
12       |   Furniture and household durables.............|   134.0   |   135.0   |   135.5   |
13       |   Nonmetallic mineral products.................|   151.1   |   153.4   |   154.2   |
14       |   Transportation equipment.....................|   147.7   |   148.1   |   147.6   |
15       |   Miscellaneous products.......................|   182.1   |   183.0   |   183.3   |
         |                                                |           |           |           |
         | Industrial commodities less fuels and related  |           |           |           |
         |   products and power...........................|   150.0   |   151.8   |   152.7   |
         |                                                |           |           |           |
         |                                                |           |           |           |
         |             OTHER COMMODITY GROUPINGS          |           |           |           |
         |                                                |           |           |           |
01-1     | Fruits and melons, fresh and dry vegetables,   |           |           |           |
         |   and tree nuts................................|   112.4   |   100.4   |   111.7   |
01-2     | Grains.........................................|   117.6   |    99.0   |    92.1   |
01-3     | Slaughter livestock............................|   117.4   |   119.9   |   120.9   |
01-4     | Slaughter poultry..............................|   176.8   |   191.2   |   179.6   |
01-5     | Plant and animal fibers........................|    89.5   |    75.4   |    73.2   |
01-7     | Chicken eggs...................................|   141.6   |   100.9   |    97.1   |
01-8     | Hay, hayseeds, and oilseeds....................|   181.8   |   172.7   |   123.6   |
01-83    | Oilseeds.......................................|   176.3   |   164.4   |   109.7   |
01-9     | Other farm products............................|    57.9   |  'N.A.'   |   150.4   |
02-1     | Cereal and bakery products.....................|   173.7   |   174.4   |   174.3   |
02-2     | Meats, poultry, and fish.......................|   140.3   |   142.8   |   140.7   |
02-22    | Processed poultry..............................|   133.6   |   136.2   |   131.5   |
02-5     | Sugar and confectionery........................|   149.7   |   150.5   |   150.4   |
02-6     | Beverages and beverage materials...............|   154.5   |   153.2   |   154.6   |
02-63    | Packaged beverage materials....................|   130.6   |   130.8   |   130.9   |
02-7     | Fats and oils..................................|   191.2   |   191.3   |   193.1   |
03-81    | Apparel........................................|   125.5   |   124.8   |   124.7   |
04-4     | Other leather and related products.............|   149.0   |   149.4   |   149.5   |
05-3     | Gas fuels......................................|   203.2   |   240.5   |   230.9   |
05-4     | Electric power.................................|   139.9   |   146.1   |   148.2   |
05-7     | Refined petroleum products.....................|   114.2   |   122.0   |   122.9   |
06-3     | Drugs and pharmaceuticals......................|   284.1   |   285.3   |   285.7   |
06-5     | Agricultural chemicals and products............|   144.0   |   142.0   |   143.4   |
06-7     | Other chemicals and allied products............|   142.5   |   143.6   |   143.4   |
07-1     | Rubber and rubber products.....................|   121.5   |   123.4   |   123.8   |
07-11    | Rubber, except natural rubber..................|   127.2   |   130.7   |   133.1   |
07-13    | Miscellaneous rubber products..................|   141.3   |   142.8   |   143.0   |
07-2     | Plastic products...............................|   140.2   |   141.7   |   142.2   |
08-1     | Lumber.........................................|   206.6   |   208.1   |   220.2   |
09-1     | Pulp, paper, and products, excluding building  |           |           |           |
         |   paper and board..............................|   158.2   |   163.4   |   164.7   |
09-15    | Converted paper and paperboard products........|   164.2   |   168.0   |   169.9   |
10-1     | Iron and steel.................................|   154.4   |   169.4   |   174.6   |
10-2     | Nonferrous metals..............................|   145.1   |   146.3   |   147.2   |
10-25    | Nonferrous mill shapes.........................|   148.2   |   154.1   |   154.8   |
11-3     | Metalworking machinery and equipment...........|   151.7   |   152.6   |   152.8   |
11-4     | General purpose machinery and equipment........|   158.7   |   160.5   |   161.1   |
11-6     | Special industry machinery.....................|   170.0   |   170.8   |   170.6   |
11-7     | Electrical machinery and equipment.............|   113.7   |   113.8   |   113.8   |
11-9     | Miscellaneous machinery and equipment..........|   140.1   |   140.8   |   140.9   |
12-6     | Other household durable goods..................|   159.2   |   160.0   |   160.0   |
13-2     | Concrete ingredients...........................|   168.8   |   170.5   |   171.9   |
14-1     | Motor vehicles and equipment...................|   130.3   |   130.4   |   129.3   |
15-1     | Toys, sporting goods, small arms, etc..........|   131.9   |   132.2   |   132.8   |
15-4     | Photographic equipment and supplies............|   102.9   |   102.7   |   102.6   |
15-9     | Other miscellaneous products...................|   142.5   |   142.8   |   143.0   |
__________________________________________________________|___________|___________|___________|
                                                                                               
1/  Data for April 2004 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 selected industries and industry groups, not seasonally 
adjusted               
__________________________________________________________________________________________________________________
                  |                                              |     |         Index         |  Percent change  
  Industry        |                Industry 1/                   |Index|_______________________|to_Aug._2004_from:
    code          |                                              |base |       |       |       |        |         
                  |                                              |     |Apr.   |July   |Aug.   |  Aug.  |  July   
                  |                                              |     |2004 2/|2004 2/|2004 2/|  2003  |  2004   
__________________|______________________________________________|_____|_______|_______|_______|________|_________
                  |                                              |     |                                          
                  |Total mining industries...................... |12/84| 140.9   155.2   157.2     25.3      1.3  
       211        | Oil and gas extraction...................... |12/85| 171.7   196.9   198.7     31.5       .9  
       212        | Mining (except oil & gas)................... |12/03| 108.5   108.5   110.2     (3)       1.6  
       213        | Mining support activities................... |12/03| 101.0   103.5   105.5     (3)       1.9  
                  |                                              |     |                                          
                  |Total manufacturing industries............... |12/84| 141.8   143.4   143.7      4.9       .2  
       311        | Food mfg.................................... |12/84| 146.1   146.7   144.4      4.8     -1.6  
       312        | Beverage & tobacco mfg...................... |12/03| 101.5   100.9   101.4     (3)        .5  
       313        | Textile mills............................... |12/03| 100.7   101.6   101.6     (3)     0      
       314        | Textile product mills....................... |12/03| 100.2   101.9   102.4     (3)        .5  
       315        | Apparel Manufacturing....................... |12/03|  99.9    99.6    99.6     (3)     0      
       316        | Leather & allied product mfg................ |12/84| 143.5   143.6   143.7       .6       .1  
       321        | Wood products manufacturing................. |12/03| 108.1   106.7   109.9     (3)       3.0  
       322        | Paper manufacturing......................... |12/03| 100.1   103.4   104.2     (3)        .8  
       323        | Printing and related support activities..... |12/03| 100.8   101.3   101.5     (3)        .2  
       324        | Petroleum and coal products mfg............. |12/84| 141.9   152.0   155.6     25.5      2.4  
       325        | Chemical mfg................................ |12/84| 169.7   172.0   173.2      5.5       .7  
       326        | Plastics and rubber products mfg............ |12/84| 130.0   131.4   131.8      2.4       .3  
       327        | Nonmetallic mineral product mfg............. |12/84| 140.9   143.1   143.7      4.1       .4  
       331        | Primary metal mfg........................... |12/84| 138.4   147.6   149.1     26.6      1.0  
       332        | Fabricated metal product mfg................ |12/84| 139.4   142.6   143.7      8.1       .8  
       333        | Machinery mfg............................... |12/03| 101.3   102.1   102.2     (3)        .1  
       334        | Computer & electronic product mfg........... |12/03|  99.5    99.0    98.9     (3)       -.1  
       335        | Electrical equip, appliance & component mfg. |12/03| 102.7   103.7   103.8     (3)        .1  
       336        | Transportation equipment mfg................ |12/03| 100.2   100.4    99.9     (3)       -.5  
       337        | Furniture & related product mfg............. |12/84| 149.7   152.1   152.7      3.5       .4  
       339        | Miscellaneous mfg........................... |12/03| 101.0   101.3   101.0     (3)       -.3  
                  |                                              |     |                                          
                  |Retail trade industries                       |     |                                          
       441        | Motor vehicle and parts dealers............. |12/03| 103.8   104.0   103.4     (3)       -.6  
       442        | Furniture and home furnishings stores....... |12/03| 102.0   102.5   103.0     (3)        .5  
       443        | Electronics and appliance stores............ |12/03| 101.2    99.9    98.8     (3)      -1.1  
       444        | Bldg material and garden equip and supp      |     |                                          
                  |  dealers.................................... |12/03| 107.7   111.9   111.7     (3)       -.2  
       445        | Food and beverage stores.................... |12/99| 122.6   125.1   122.4      2.3     -2.2  
       446        | Health and personal care stores............. |12/03|  97.4    99.5   101.5     (3)       2.0  
       447        | Gasoline stations........................... |06/01|  56.6    46.0    47.0    -19.9      2.2  
       448        | Clothing and clothing accessories stores.... |12/03|  99.2    99.0   100.6     (3)       1.6  
       451        | Sporting goods, hobby, book and music stores |12/03|  98.7    97.8    96.3     (3)      -1.5  
       452        | General merchandise stores.................. |12/03| 103.3   104.1   101.8     (3)      -2.2  
       454        | Nonstore retailers.......................... |12/03| 108.6   106.1   103.6     (3)      -2.4  
                  |                                              |     |                                          
                  |Transportation and warehousing                |     |                                          
       481        | Air transportation.......................... |12/92| 162.3   163.4   165.1      1.2      1.0  
       482        | Rail transportation......................... |12/96| 111.8   113.3   113.3      3.8    0      
       483        | Water transportation........................ |12/03| 100.1   100.4   100.5     (3)        .1  
       484        | Truck transportation........................ |12/03| 101.6   103.2   103.6     (3)        .4  
       486110     | Pipeline transportation of crude oil........ |06/86| 113.1   115.1   116.6      4.6      1.3  
       486910     | Pipeline transportation of refined petroleum |     |                                          
                  |  products................................... |06/86| 114.3   116.8   117.3      3.9       .4  
       488        | Transportation support activities........... |12/03| 100.5   101.2   101.5     (3)        .3  
       491        | Postal service.............................. |06/89| 155.0   155.0   155.0      0.0      0.0  
       492        | Couriers and messengers..................... |12/03| 105.2   106.2   106.0     (3)       -.2  
                  |                                              |     |                                          
                  |Utilities                                     |     |                                          
       221        | Utilities................................... |12/03| 101.8   107.1   107.5     (3)        .4  
                  |                                              |     |                                          
                  |Health care and social assistance             |     |                                          
       6211       | Offices of physicians....................... |12/96| 114.4   114.5   114.5      1.6    0      
       6215       | Medical and diagnostic laboratories......... |12/03|  99.8   100.0   100.0     (3)     0      
       6216       | Home health care services................... |12/96| 119.7   119.9   119.8      3.1      -.1  
       622        | Hospitals................................... |12/92| 140.7   142.3   142.1      4.9      -.1  
       6231       | Nursing care facilities..................... |12/03| 101.9   102.1   102.9     (3)        .8  
       62321      | Residential mental retardation facilities... |12/03|  99.9    99.9   100.6     (3)        .7  
__________________________________________________________________________________________________________________
See footnotes at end of table.

Table 4. Producer price indexes for the net output of selected industries and industry groups, not seasonally 
adjusted -- Continued  
__________________________________________________________________________________________________________________
                  |                                              |     |         Index         |  Percent change  
  Industry        |                Industry 1/                   |Index|_______________________|to_Aug._2004_from:
    code          |                                              |base |       |       |       |        |         
                  |                                              |     |Apr.   |July   |Aug.   |  Aug.  |  July   
                  |                                              |     |2004 2/|2004 2/|2004 2/|  2003  |  2004   
__________________|______________________________________________|_____|_______|_______|_______|________|_________
                  |                                              |     |                                          
                  |Other services industries                     |     |                                          
       511        | Publishing industries, except Internet...... |12/03| 101.4   101.8   101.2     (3)       -.6  
       515        | Broadcasting, except Internet............... |12/03| 101.6   100.3   100.1     (3)       -.2  
       517        | Telecommunications.......................... |12/03| 100.1    99.7   100.0     (3)        .3  
       5182       | Data processing and related services........ |12/03|  98.5    99.0    99.0     (3)     0      
       523        | Security, commodity contracts and like       |     |                                          
                  |  activity................................... |12/03| 102.3   102.5   102.3     (3)       -.2  
       524        | Insurance carriers and related activities... |12/03| 101.6   102.1   102.2     (3)        .1  
       53112      | Lessors of nonres bldg (exc miniwarehouse).. |12/03| 101.0   103.2   105.2     (3)       1.9  
       5312       | Offices of real estate agents and brokers... |12/03| 100.8   101.1   101.1     (3)     0      
       5321       | Automotive equipment rental and leasing..... |06/01| 106.0   109.7   111.0      3.2      1.2  
       5411       | Legal services.............................. |12/96| 131.8   132.0   131.9      5.2      -.1  
       541211     | Offices of certified public accountants..... |12/03| 101.1   101.3   101.6     (3)        .3  
       5413       | Architectural, engineering and related       |     |                                          
                  |  services................................... |12/96| 126.6   126.9   126.9      2.2    0      
       54181      | Advertising agencies........................ |12/03|  99.9   100.3   100.7     (3)        .4  
       5613       | Employment services......................... |12/96| 113.1   114.8   114.8      2.8    0      
       56151      | Travel agencies............................. |12/03|  98.7    96.1    95.4     (3)       -.7  
       56172      | Janitorial services......................... |12/03| 100.5   100.8   101.6     (3)        .8  
       5621       | Waste collection............................ |12/03| 101.3   101.3   101.3     (3)     0      
       721        | Accommodation                                |12/96| 124.8   128.6   128.6      4.8    0      
__________________________________________________________________________________________________________________

1/ Indexes in this table are derived from the net-output-weighted industry price indexes.  Because of differences 
   in coverage and aggregation methodology, they will generally not match the movements of similarly titled
   indexes which are derived from traditional commodity groupings.           
2/ The indexes for April 2004 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.
                                                                                                 
Note: NAICS 2002 replaced the SIC system beginning with the release of PPI data for January 2004.

Table 5.  Producer price indexes by stage of processing, seasonally adjusted
(1982=100)
_____________________________________________________________________________________________________________
                                                       |                                                     
                                                       |                      Index 1/                       
                                                       |_____________________________________________________
               Grouping                                |        |        |        |        |        |        
                                                       |  Mar.  |  Apr.  |  May   |  June  |  July  |  Aug.  
                                                       |  2004  |  2004  |  2004  |  2004  |  2004  |  2004  
_______________________________________________________|________|________|________|________|________|________
                                                       |                                            
      Finished goods...................................|  146.7    147.7    148.8    148.4    148.5    148.4
        Finished consumer goods........................|  149.6    150.9    152.2    151.4    151.6    151.4
          Finished consumer foods......................|  151.2    153.1    155.2    154.3    151.8    151.5
            Crude......................................|  146.6    132.9    131.6    117.3    118.2    126.7
            Processed..................................|  151.5    154.8    157.2    157.4    154.6    153.6
          Finished consumer goods, excluding foods.....|  148.6    149.6    150.6    150.0    151.1    151.0
            Nondurable goods less foods................|  153.5    155.1    156.1    154.8    156.5    156.8
            Durable goods..............................|  134.5    134.2    135.1    135.8    135.8    134.9
        Capital equipment..............................|  140.4    140.5    141.3    141.6    141.7    141.6
          Manufacturing industries.....................|  141.3    141.8    142.1    142.6    142.8    142.8
          Nonmanufacturing industries..................|  140.0    140.0    140.9    141.2    141.2    141.1
                                                       |                 
      Intermediate materials, supplies, and components.|  138.5    140.4    141.7    142.4    143.5    144.9
        Materials and components for manufacturing.....|  134.3    136.2    137.3    138.0    138.6    139.6
          Materials for food manufacturing.............|  142.4    147.2    152.0    151.8    147.2    144.4
          Materials for nondurable manufacturing.......|  141.3    143.5    144.6    145.6    147.1    149.6
          Materials for durable manufacturing..........|  140.8    144.3    146.2    147.8    149.3    150.9
          Components for manufacturing.................|  126.5    127.0    127.4    127.6    127.8    128.1
        Materials and components for construction......|  162.0    164.6    165.9    167.1    167.5    169.8
        Processed fuels and lubricants.................|  117.6    119.7    121.4    122.3    125.2    128.9
          Manufacturing industries ....................|  119.2    120.9    121.6    124.8    126.2    130.2
          Nonmanufacturing industries..................|  116.5    119.0    121.2    120.8    124.7    128.1
        Containers.....................................|  154.1    154.9    156.8    158.0    159.5    161.4
        Supplies.......................................|  144.8    146.4    147.2    147.3    148.0    147.5
          Manufacturing industries.....................|  147.5    147.8    148.0    148.8    149.3    149.6
          Nonmanufacturing industries..................|  142.9    144.8    145.8    145.7    146.5    145.7
            Feeds......................................|  125.3    134.9    137.7    128.3    131.7    115.1
            Other supplies.............................|  145.5    146.7    147.5    148.3    148.9    149.7
                                                       |                 
      Crude materials for further processing...........|  153.1    155.9    158.7    161.3    161.0    159.8
        Foodstuffs and feedstuffs......................|  132.3    136.6    140.5    135.4    128.9    123.0
        Nonfood materials..............................|  164.6    166.2    167.9    176.5    181.3    183.7
          Nonfood materials except fuel 2/.............|  143.5    140.8    140.4    136.9    146.6    157.8
            Manufacturing 2/...........................|  132.4    129.8    129.5    126.1    135.2    145.7
            Construction...............................|  189.3    189.4    190.1    192.7    194.5    194.6
          Crude fuel 3/................................|  182.9    191.8    197.1    225.8    221.5    208.4
            Manufacturing industries...................|  174.2    182.6    187.4    213.9    209.8    197.7
            Nonmanufacturing industries................|  187.0    196.1    201.5    231.0    226.6    213.1
                                                       |                 
                     Special groupings                 |                 
                                                       |                 
      Finished goods, excluding foods..................|  145.3    146.0    146.9    146.6    147.4    147.3
      Intermediate materials less foods and feeds......|  138.6    140.4    141.5    142.4    143.7    145.5
      Intermediate foods and feeds.....................|  137.5    143.9    148.0    144.8    142.8    135.4
      Crude materials less agricultural products 2/....|  167.1    170.0    171.6    180.9    186.2    188.0
                                                       |                 
      Finished energy goods............................|  108.8    110.8    112.3    110.5    113.0    113.2
      Finished goods less energy.......................|  151.4    152.0    153.0    153.0    152.4    152.2
      Finished consumer goods less energy..............|  156.2    157.0    158.2    157.9    157.1    156.8
                                                       |                 
      Finished goods less foods and energy.............|  151.8    152.0    152.6    152.9    153.0    152.8
      Finished consumer goods less foods and energy....|  159.6    159.8    160.3    160.5    160.6    160.3
      Consumer nondurable goods less foods and energy..|  179.8    180.4    180.6    180.3    180.6    180.9
                                                       |                 
      Intermediate energy goods........................|  116.5    118.6    120.4    121.3    124.1    127.5
      Intermediate materials less energy...............|  142.4    144.3    145.4    146.1    146.7    147.6
      Intermediate materials less foods and energy.....|  142.9    144.5    145.5    146.3    147.1    148.5
                                                       |                 
      Crude energy materials 2/........................|  153.0    158.8    165.3    178.0    178.3    178.1
      Crude materials less energy......................|  148.3    149.1    149.5    145.6    144.9    143.1
      Crude nonfood materials less energy 3/...........|  194.6    186.3    177.1    176.2    191.4    200.1
_____________________________________________________________________________________________________________
                                                                                                             
  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 April 2004 have been 
      recalculated to incorporate late reports and corrections by respondents.                               
  2/  Includes crude petroleum.                                                                              
  3/  Excludes crude petroleum.
Technical Note

               Brief Explanation of Producer Prices Indexes

     The Producer Price Index (PPI) of the Bureau of Labor Statistics (BLS) 
is a family of indexes that measure the average change over time in 
the prices received by domestic producers of goods and services.  PPIs
measure price change from the perspective of the seller.  This contrasts
with other measures, such as the Consumer Price Index (CPI).  CPIs measure
price change from the purchaser's perspective.  Sellers' and purchasers'
prices can differ due to government subsidies, sales and excise taxes, and
distribution costs.

     More than 8,000 PPIs for individual products and groups of products
are released each month.  PPIs are available for the products of virtually
every industry in the mining and manufacturing sectors of the U.S. economy.
New PPIs are gradually being introduced for the products of industries in
the trade, finance, and services sectors of the economy.

     More than 100,000 price quotations per month are organized into three
sets of PPIs:  (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 organizes products by class of buyer and degree of
fabrication.  The commodity structure 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.
                                     
                        Stage-of-Processing Indexes
     
     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, as well as 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.
                                     
                             Commodity Indexes

     The commodity classification structure of the PPI organizes products
by similarity of end use or material composition, disregarding industry of
origin.  Fifteen major commodity groupings (2-digit commodity codes) make
up the All Commodities Index. Each major commodity grouping includes (in
descending order of aggregation) subgroups (3-digit), product classes (4-
digit), subproduct classes (6-digit), and individual items (8-digit).
Nearly all 8-digit commodities under the traditional commodity coding
system are now derived from corresponding industry-classified product
indexes.  In such instances, movements in the traditional commodity price
indexes and corresponding percent changes will be virtually identical to
their industry-based counterparts, even if their index levels differ.
                                     
                     Industry Net-Output Price Indexes
                                     
     PPIs for the net output of industries and their products are grouped
according to the North American Industry Classification System (NAICS).
Prior to the release of January 2004, industry-based PPIs were published
according to the Standard Industrial Classification (SIC) system.  Industry
price indexes are compatible with other economic time series organized by
industry, such as data on employment, wages, and productivity.  Table 5 of
the PPI Detailed Report includes data for NAICS industries and industry
groups (3-, 4-, 5-, and 6-digit codes); Census product classes (7- and 
8-digits), products (9-digits), and more detailed subproducts (11-digits); 
and, for some industries, indexes for other sources of revenue.

     Indexes may represent one of three kinds of product indexes.  Every
industry has primary product indexes to show changes in prices received by
establishments classified in the industry for products made primarily, but
not necessarily exclusively, by that industry.  The industry classification
of an establishment is determined by which products comprise a plurality of
its total shipment value.  In addition, most industries have secondary
product indexes that show changes in prices received by establishments
classified in the industry for products chiefly made in some other
industry.  Finally, some industries have miscellaneous receipts indexes to
show price changes in other sources of revenue received by establishments
within the industry that are not derived from sales of their products, for
example, resales of purchased materials, or revenues from parking lots
owned by a manufacturing plant.
                                     
                              Data Collection

     PPIs 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.  The BLS
strongly encourages cooperating companies to supply actual transaction
prices at the time of shipment to minimize the use of list prices.  Prices
submitted by survey respondents are effective on the Tuesday of the week
containing the 13th day of the month.  This survey is conducted primarily
through the mail.

     Price data are provided on a voluntary and confidential basis; only
sworn BLS employees are allowed access to individual company price reports.
BLS publishes price indexes instead of unit dollar prices.  All PPIs are
subject to revision 4 months after original publication to reflect the
availability of late reports and corrections by respondents.

     BLS periodically updates the PPI sample of survey respondents to
better reflect current conditions when the structure, membership,
technology, or product mix of an industry shifts significantly and to
spread reporting burden among smaller firms.  Results of these resampling
efforts are incorporated into the PPI with the release of data for January
and July.

     As part of an ongoing effort to expand coverage to sectors of the
economy other than mining and manufacturing, an increasing number of
service sector industries have been introduced into the PPI.  The following
list of recently introduced industries includes the month and year in which
an article describing the industry's content appeared in the PPI Detailed
Report.

                                                                   PPI
                                                                   Detailed
                      Title                              Code      Report
                                                                   Issue
                                                         SIC             
Wireless Telecommunications..............................4812     July 1999
Telephone Communications, Except Radio Telephone.........4813     July 1995
Television Broadcasting..................................4833     July 2002
Grocery Stores...........................................5411     July 2000
Meat and Fish (Seafood) Markets..........................5421     July 2000
Fruit and Vegetable Markets..............................5431     July 2000
Candy, Nut, and Confectionery Stores.....................5441     July 2000
Retail Bakeries..........................................5461     July 2000
Miscellaneous Food Stores................................5499     July 2000
New Car Dealers..........................................5511     July 2000
Gasoline Service Stations................................5541     January 2002
Boat Dealers.............................................5551     January 2002
Recreational Vehicle Dealers.............................5561     January 2002
Miscellaneous Retail.....................................59       January 2001
Security Brokers, Dealers, and Investment Bankers........6211     January 2001
Investment Advice........................................6282     January 2003
Life Insurance Carriers..................................6311     January 1999
Property and Casualty Insurance..........................6331     July 1998
Insurance Agencies and Brokerages........................6412     January 2003
Operators and Lessors of Nonresidential Buildings........6512     January 1996
Real Estate Agents and Managers..........................6531     January 1996
Prepackaged Software.....................................7372     January 1998
Data Processing Services.................................7374     January 2002
Home Health Care Services................................8082     January 1997
Legal Services...........................................8111     January 1997
Engineering Design, Analysis, and Consulting Services....8711     January 1997
Architectural Design, Analysis, and Consulting Services..8712     January 1997
Premiums for Property and Casualty Insurance.............9331     July 1998
                                                         
                                                        NAICS            
Furniture and Home Furnishings Stores....................442      January 2004
Electronics and Appliance Stores.........................443      January 2004
Building Material and Garden Equipment and Supplies 
Dealers..................................................444      January 2004
Clothing and Clothing Accessories Stores.................448      January 2004
Sporting Goods, Hobby, Book, and Music Stores............451      January 2004
General Merchandise Stores...............................452      January 2004
Miscellaneous Store Retailers............................453      January 2004
Direct Health and Medical Insurance Carriers.............524114   July 2004 

                                  Weights

     Weights for most traditional commodity groupings of the PPI, as well
as weights for commodity-based aggregate indexes calculated using
traditional commodity groupings, such as stage-of-processing indexes,
currently reflect 1997 values of shipments as reported in the Census of
Manufactures and other sources.  From January 1996 through December 2001,
PPI weights were derived from 1992 shipment values.  Industry indexes also
are now calculated with 1997 net output weights.  This periodic update of
the value weights used to calculate the PPI is done to more accurately
reflect changes in production and marketing patterns in the economy.  Net
output values of shipments are used as weights for industry indexes.  Net
output values refer to the value of shipments from establishments within
the industry to buyers outside the 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 PPI for All
Commodities, 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.
                                     
                        Price Index Reference Base
                                     
     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.  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 previously published percent changes for affected
PPI series.  (See "Calculating Index Changes," below.)  The 1982 reference
base is not used for commodity indexes with a base later than December 1981
or for industry net output indexes and their products.

     For further information on the underlying concepts and methodology of
the Producer Price Index, see chapter 14, "Producer Prices," in BLS Handbook
of Methods (April  1997), Bulletin 2490.  This document can be downloaded 
from the BLS Web site at (http://www.bls.gov/opub/hom/homch14_itc.htm), 
and reprints are available on request.
                                     
                         Calculating Index Changes
                                     
     Each PPI measures price changes from a reference period which equals
100.0.  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
also can be expressed in dollars, as follows:  Prices received by domestic
producers of a sample of finished goods have risen from $100 in 1982 to
$105.50.  Likewise, a current index of 90.0 would indicate that prices
received by producers of finished goods are 10 percent lower than they were
in 1982.

     Movements of price indexes from one month to another are usually
expressed as percent changes, rather than as changes in index points.
Index point changes are affected by the level of the index in relation to
its base period, whereas percent changes are not.  The following example
shows the computation of index point and percent changes.
     
     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
                                     
                                     
                  Seasonally Adjusted and Unadjusted Data

     Because price data are used for different purposes by different
groups, BLS publishes seasonally adjusted and unadjusted changes each
month.  Seasonally adjusted data are preferred for analyzing general price
trends in the economy, because these data 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 that 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 when 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 the BLS.)

     In 1998, the PPI implemented the X-12-ARIMA Seasonal Adjustment
Method; prior to that year the PPI employed the X-11 method.  Each year,
the seasonal status of most commodity indexes is re-evaluated to reflect
more recent price behavior.  Industry net output indexes are not seasonally
adjusted.  For time series that exhibit seasonal pricing patterns, new
seasonal factors are estimated and applied to the unadjusted data for the
previous 5 years.  These updated seasonally adjusted indexes replace the
most recent 5 years of seasonal data.

     Seasonal factors may be applied to series using either a direct or
aggregative method.  Generally, commodity indexes are seasonally adjusted
using direct seasonal adjustment, which produces a more complete
elimination of seasonal movements than the aggregative method.  However,
the direct seasonal adjustment process may not yield figures that possess
additive consistency.  Thus, a seasonally adjusted index for a broad
category that is directly adjusted may not be logically consistent with all
seasonally adjusted indexes for its components.  Seasonal movements for
stage-of-processing indexes are derived indirectly through an aggregative
method that combines movements of a wide variety of subproduct class (6-
digit) series.

     Seasonally adjusted indexes can become problematic when previously
stable and predictable price patterns abruptly change.  If the new pattern
persists, the seasonal adjustment method will eventually reflect it
adequately; if these patterns keep shifting, however, seasonally adjusted
data will become chronically troublesome.  This problem occurs relatively
infrequently for farm and food-related products but has more often affected
manufactured products such as automobiles and steel.

     Since January 1988, the PPI has used Intervention Analysis Seasonal
Adjustment methods to enhance the calculation of seasonal factors.  With
this technique, outlier values that may distort the seasonal pattern are
removed from the data prior to applying the standard seasonal factor
estimation procedure.  For example, a possible economic cause for large
price movements for petroleum-based products might have been the Persian
Gulf War.  In this case, intervention techniques allowed for better
estimates of seasonally adjusted data.  On the whole, very few series have
required intervention.  Out of nearly 900 seasonally adjusted series, only
16 interventions were performed in 1997.

     For more information relating to seasonal adjustment methods, see (1)
"Appendix A: Seasonal Adjustment Methodology at BLS," in the BLS Handbook
of Methods (April 1997), Bulletin 2490 and (2) "Summary of Changes to the
PPI's Seasonal Adjustment Methodology" in the January 1995 issue of
Producer Price Indexes.

                Producer Price Index Data Via the Internet

     In 1995, the BLS began posting PPI series, news releases, and
technical information to both a World Wide Web (WWW) site and a file
transfer protocol (FTP) site.  During the years following the introduction
of PPI Internet services, usage of these sites eclipsed more traditional
methods of data dissemination, such as subscriptions to the PPI Detailed
Report.  There were more than 1.6 million accesses of PPI series over the
Internet during the 12 months ended December 31, 2003.

                 Retrieving PPI data from the PPI Website

     PPI data can be obtained from the WWW address (http://www.bls.gov/ppi).
Scrolling down the page to the "Get Detailed Statistics" header reveals 
the following 5 methods of data retrieval:

     Most Requested Series is a form-based application that allows the
user to quickly obtain PPI time series data by selecting from two separate
lists (commodity and industry) of the most commonly requested time series,
including the All Commodities Index and the stage-of-processing indexes
(for example, Finished Goods).  Within each list, any one-or all-of the
time series shown can be selected.  A user can modify the date range and
output options after executing the query, using the reformat button above
the data output table.

     Create Customized Tables is a form-based query application designed for
users unfamiliar with the PPI coding structure.  It guides a user through
the PPI classification system by listing index titles and does not require
knowledge of commodity or industry codes.  Data retrieved are based on a
query formulated by selecting data characteristics from lists provided.
Two options are available to create customized tables, depending on a
user's browser capability.  The one-screen option is a JavaScript
application that uses a single screen to guide a user through the available
time series data.  The second option is a multiple screen, nonJava-based
application.  Both methods allow a user to browse the PPI coding structure
and select multiple series codes.  Using the one-screen option, users can
modify the date range and output options after executing the query using
the reformat button above the data output table.

     Series Report is a form-based application that uses formatted PPI time
series identifiers (commodity or industry codes) as input in extracting
data according to a specified set of date ranges and output options.  This
application provides the most efficient path for those users who are
familiar with the format of PPI time series identifiers.  Up to 300 indexes
can be extracted at one time.

     There are three basic formats for creating a unique PPI time series
identifier.  For commodity and stage-of-processing indexes, enter a "wpu"
prefix (not seasonally adjusted) or a "wps" prefix (seasonally adjusted) in
combination with a commodity-based code to create a series identifier.
  
  Commodity code      Will provide data for:
  wps063              Drugs and pharmaceuticals, seasonally adjusted
  wpu063803           Pharmaceutical preparations, cardiovascular system
  wpusop3000          Finished goods, not seasonally adjusted
  
     For a current industry-based price index organized according to the North
American Industry Classification System (NAICS), enter the prefix "pcu"
followed by the industry-product code.  The series identifier for products
primary to an industry include 12 numeric digits, the six-digit industry
code is repeated, and up to seven additional digits of product detail.
Dashes are used as place holders for higher-level industry group codes.

  Industry-product code,   Will provide data for:
  Current NAICS series
  pcu325---325---          Chemical manufacturing, not seasonally adjusted
  pcu336110336110          Automobile and light duty motor vehicle manufacturing
  pcu621111621111411       Offices of physicians, one and two physician practices 
                           and single specialty group practices, general/family 
                           practices
                    
     To identify a discontinued industry-product code based on the Standard
Industrial Classification (SIC), enter a "pdu" prefix and "#" between the
fourth and fifth characters of the product code.  A series identifier for
the discontinued dataset uses underscores as placeholders to complete a
reference to an SIC industry group code of less than four digits.  (All PPI
industry-based indexes organized by SIC were discontinued with the
introduction of the NAICS.)  In all cases, no spaces are permitted.
  
  Industry-product code,   Will provide data for:
  Discontinued SIC series
  pdu28__#                 Chemicals and allied products, not seasonally adjusted
  pdu331_#                 Blast furnaces, steel works, and rolling and
                           finishing mills, not seasonally adjusted
  pdu3711#111              Passenger cars
  
     Flat Files and the FTP server are best suited for those users requiring
access to either a large volume of time series data or other PPI-related
documentation (such as, seasonal factor and relative importance tables).
The FTP site can be accessed at (ftp://ftp.bls.gov) or directly from the
links on the "Get Detailed Statistics" page or the PPI homepage.  Data and
documentation available for download include:

 Data/Documentation          Directory:
 NAICS Current Series        /pub/time.series/pc
 SIC Discontinued Series     /pub/time.series/pd
 Commodity Series            /pub/time.series/wp
 Special Requests            /pub/special.requests/ppi
 Latest News Release         /pub/news.release/ppi.txt

     The FTP site maintains files to help with searches and downloads.  
These files are centrally located in the /pub/doc directory.  Within this
directory, go to the overview.txt file for an overview relating to all BLS
data available through the FTP site.  For commodity-based PPI data (which
appear in tables 1, 2, 3, 6, 7, and 8 of the PPI monthly detailed report
and tables 1, 2, 3, and 5 of the monthly news release), the program help
file is wp.txt.  For current industry-based PPI data based on the NAICS
(which appear in tables 4, 5, and 9 of the monthly PPI report and table 4
of the monthly news release), the file is pc.txt.  For industry-based SIC
time series that have been discontinued, go to pd.txt.  (These and other
help files are also maintained within each of the five directories listed
above.)

                         Other Sources of PPI Data

     PPI data can also be accessed via the BLS homepage
(http://www.bls.gov).  After clicking the "Get Detailed Statistics" link at
the top of the homepage a chart appears listing all of the available BLS
programs.  The following four methods are available for PPI data:  Most
requested statistics, create customized tables (one screen or multiple
screens), and flat files.  Additional sources of BLS data also are 
accessible from this page including:  Economic news releases, series
report, and economy at a glance.

                          Additional information

     The PPI homepage (http://www.bls.gov/ppi) contains additional
information regarding PPI data and methodology.  The top section of the
homepage provides PPI news releases, both current and archived, as well as
general PPI information.  The "Tables Created by BLS" section found beneath
the statistics section provides relative importance and seasonal factor
tables.  The remaining sections offer special notices and publications
pertaining to PPI methodology and applications.

     For questions or comments regarding PPI data classification,
methodology, or data availability on the Internet, call or e-mail the
Section of Index Analysis and Public Information directly at (202) 691-7705
or ppi-info@bls.gov.  Data also can be obtained by calling the national fax-
on-demand service at (202) 691-6325. This service enables customers to
request faxes of BLS data 24 hours a day, 7 days a week.