FOR DATA ONLY:  (202) 606-7828     USDL 98-05
FOR TECHNICAL INFORMATION:         TRANSMISSION OF MATERIAL IN
(202) 606-7705                     THIS RELEASE IS EMBARGOED
MEDIA CONTACT:  (202) 606-5902     UNTIL 8:30 A.M. (E.S.T),
                                   THURSDAY,
http://stats.bls.gov/ppihome.htm   JANUARY 8, 1998

                  Producer Price Indexes -- December 1997

     The Producer Price Index for Finished Goods decreased 0.2 percent in
December, seasonally adjusted, the Bureau of Labor Statistics of the U. S.
Department of Labor reported today.  This followed a decrease of 0.2
percent in November.  The index for finished goods other than foods and
energy declined 0.1 percent for the second consecutive month.  Prices
received by domestic producers of intermediate goods declined 0.2 percent
after rising 0.2 percent in November.  The crude materials index fell 5.6
percent, following a 1.6-percent gain in the prior month.  (See table A.)

     Among finished goods in December, prices fell for all major groupings
-- capital equipment, finished consumer goods other than foods and energy,
finished energy goods, and finished consumer foods.  Each of these indexes
also declined in November.

Table A.  Monthly and annual percent changes in selected stage-of-
processing price
indexes, seasonally adjusted
                     Finish                                  
                         ed
                      goods
                                                             
                                     Change in            
                            Except   finished   Inter-    
                                       goods
                             foods    from 12   mediateCrude
                              and     months
Month  Total  Foods  Energy energy      ago      goods Goods
                                     (unadj.)
 1996                                                     
 Dec.     0.5   -0.2    3.3     0.1         2.8    0.5    6.2
                                                             
 1997                                                        
 Jan.    -0.3   -1.0   -0.2       0         2.5    0.2    3.8
 Feb.    -0.3   -0.4   -1.2    -0.1         2.2   -0.2   -8.3
 Mar.    -0.2    0.8   -3.1     0.1         1.5   -0.4   -7.7
 Apr.    -0.5   -0.4   -3.2    -0.1         0.8   -0.3    0.6
 May     -0.2    0.4   -1.3    -0.2         0.4   -0.2    2.1
 June    -0.2   -0.9    0.5     0.1        -0.1      0   -3.2
 July    -0.1   -0.2    0.2    -0.2        -0.2   -0.1   -0.1
 Aug.     0.3    0.2   r1.5     0.1        -0.2   r0.2   r0.6
Sept.     0.5    0.1   r1.2     0.4           0   r0.2   r0.7
 Oct.     0.1    0.4    0.1       0        -0.2   -0.1    4.0
 Nov.    -0.2   -0.1   -0.8    -0.1        -0.6    0.2    1.6
 Dec.    -0.2   -0.1   -0.2    -0.1        -1.2   -0.2   -5.6
r=revised.  Some of the figures shown above and elsewhere in this release
may differ from those previously reported because data for August 1997 have
been revised to reflect the availability of late reports and corrections
by respondents.
                                    -2-
     Before seasonal adjustment, the Producer Price Index for Finished
Goods declined 0.5 percent in December to stand at 131.1 (1982=100).  From
December 1996 to December 1997, the finished goods index decreased 1.2
percent after increasing 2.8 percent in 1996.  The last larger calendar-year
decline for finished goods was in 1986, when the index dropped 2.3 percent
due to falling energy prices.  Prices for finished energy goods fell 6.4
percent in 1997 after advancing 11.7 percent in 1996.  The index for
finished consumer foods declined 1.0 percent in 1997, following a 3.4-
percent rise in 1996.  Prices for finished goods other than foods and
energy inched up 0.1 percent in 1997 after rising 0.6 percent in 1996.  At
the earlier stages of processing, prices for intermediate goods moved down
0.8 percent in 1997 after moving up 0.7 percent in 1996.   The index for
crude materials decreased 11.7 percent in 1997, following an advance of
14.7 percent in the previous year.

Finished goods

     Prices for capital equipment fell 0.2 percent in December after
declining 0.1 percent in November.  The capital equipment index declined
0.5 percent during 1997 after increasing 0.4 percent in the previous year.
In December, price declines for light motor trucks, electronic computers,
transformers and power regulators, and railroad equipment outweighed price
increases for civilian aircraft, commercial furniture, and heavy motor
trucks.
     
     The December index for finished consumer goods other than foods and
energy fell 0.1 percent following a similar decline in November.   From
December 1996 to December 1997, this index increased 0.3 percent after
rising 0.8 percent in the previous year.  In December, price declines for
passenger cars, light trucks, household appliances, and cosmetics slightly
outweighed price increases for tobacco products, alcoholic beverages,
newspaper circulation, and women's apparel.
     
Table B.  Monthly and annual percent changes in selected price indexes for
intermediate goods and
crude goods, seasonally adjusted
              Interm                           Crude           
              ediate                           goods
              goods
                            Change in                        Change in
                            intermedi                          crude
                               ate
                     Exclud   goods                  Excludi   goods
                      ing      from                    ng
                     Foods  12 months         Energy  foods   from 12
                      and      ago                     and   months ago
Month  Foods  Energy Energy  (unadj.)   Foods (unadj Energy   (unadj.)
                                                .)
 1996                                                             
 Dec.    -0.6    2.9    0.1        0.7   -2.7   19.3    0.0     14.7
                                                                  
 1997                                                             
 Jan.    -0.5    0.6    0.1        0.9   -1.2    8.9    2.3     16.1
 Feb.    -0.1   -0.8    0.1        1.1   -1.4  -17.9    1.1     4.5
 Mar.     1.8   -3.8      0        0.6    2.0  -21.3    0.3     -2.2
 Apr.     0.5   -2.5      0       -0.1    3.1   -0.9   -2.3     -5.7
 May      0.5   -1.5    0.1       -0.6   -0.2    5.8    1.3     -4.7
 June    -1.5    0.5      0       -0.3   -5.6   -2.0   -0.3     -5.5
 July    -1.6   -0.9    0.1       -0.3    0.5   -0.1   -1.0     -7.4
 Aug.    -0.2   r1.2      0      r-0.2  r-0.2   r0.8   r1.4    r-7.3
Sept.     1.4   r0.5      0       -0.6  r-0.1   r3.0  r-0.8    r-4.2
 Oct.    -2.8    0.5    0.1       -0.4      0   10.7    0.3     0.3
 Nov.     1.6    0.5    0.1       -0.1   -0.3    5.0   -0.7     -0.9
 Dec.    -0.9   -1.0   -0.1       -0.8   -0.7  -12.6   -1.5    -11.7
r=revised.  Some of the figures shown above and elsewhere in this release
may differ from those previously reported because data for August 1997
have been revised to reflect the availability of late reports and corrections
by respondents.
     
                                    -3-
     The index for finished energy goods fell 0.2 percent in December,
following a 0.8-percent decrease in the previous month.  The slower rate of
decline this month was caused by the indexes for gasoline and residential
electric power, both of which fell less in December than in November.  By
contrast, prices for residential natural gas and home heating oil, which
had risen in November, turned down in December.
     
     The index for finished consumer foods decreased 0.1 percent in
December for the second consecutive month.  Prices declines for beef and
veal, pork, eggs for fresh use, shortening and cooking oils, and finfish
and shellfish slightly outweighed price increases for fresh fruits and
melons and dairy products.
     
Intermediate goods

     The Producer Price Index for Intermediate Materials, Supplies, and
Components fell 0.2 percent in December, seasonally adjusted, after rising
0.2 percent a month earlier.  The indexes for energy goods, foods and
feeds, nondurable manufacturing materials, and construction materials also
turned down following an increase in November.  Prices for durable
manufacturing materials fell more than a month ago.  Excluding foods and
energy, the intermediate materials index declined 0.1 percent after rising
0.1 percent in the prior month.  (See table B.)

     Prices for intermediate energy goods turned down 1.0 percent,
following a 0.5-percent gain in November.  From December 1996 to December
1997, this index decreased 7.0 percent after rising 11.2 percent in 1996.
December's downturn in prices for intermediate energy goods was led by the
index for residual fuel, which turned down 12.4 percent after increasing
6.2 percent in the previous month.  Prices for #2 diesel fuel, commercial
natural gas, and liquefied petroleum gas also fell after rising a month
earlier.  The index for industrial electric power showed no change
following a 1.7-percent increase in November.  On the other hand, prices
for commercial electric power turned up 0.7 percent after dropping 0.3
percent in the prior month.  Prices for gasoline fell less than a month
ago.

     The index for intermediate foods and feeds decreased 0.9 percent,
following a 1.6-percent increase in November.  Prices for intermediate
foods and feeds turned down 1.8 percent in 1997 after rising 2.1 percent in
the previous year.  In December, the index for prepared animal feeds fell
0.2 percent after gaining 0.9 percent a month earlier.  Prices for
confectionery materials and pork also decreased after rising in the
previous month.  The index for fluid milk products rose less than in the
prior month.  By contrast, prices for natural, processed, and imitation
cheese increased 2.9 percent following a 2.2-percent gain in November.  The
indexes for beef and veal and refined sugar fell less than a month ago.

     The index for nondurable manufacturing materials decreased 0.2 percent
after rising 0.2 percent in November.  This index increased 0.4 percent
during 1997 following a 3.3-percent decline in 1996.  In December, prices
for alkalies and chlorine fell 0.3 percent after increasing 7.7 percent in
the previous month.  The indexes for paperboard and basic inorganic
chemicals rose less than in the prior month.  Prices for nitrogenates fell
more than a month ago.  Conversely, the index for gray fabrics rose 0.3
percent after declining 0.6 percent in November.  Prices for plastic resins
and materials and for primary basic organic chemicals fell less than in the
prior month.

     Prices for durable manufacturing materials declined 0.7 percent,
following a 0.2-percent drop in November.  Over the year, this index showed
no change after decreasing 1.4 percent in 1996.  In December, prices for
hot rolled sheet and strip fell 1.3 percent after decreasing 0.1 percent in
the prior month.  The copper index also declined more than in the previous
month.  Prices for building paper and plywood turned down after rising in
November.  By contrast, the index for copper and brass mill shapes fell 0.8
percent following a 2.8-percent decline in the prior month.  Prices for
silver turned up after falling a month ago.
                                    -4-
     The index for construction materials decreased 0.1 percent after
rising 0.2 percent in November.  This index advanced 1.3 percent during
1997, following a 1.8-percent increase in 1996.  In December, prices for
softwood lumber turned down 0.1 percent following a 1.8-percent rise in the
previous month.  The index for plywood also fell after rising a month ago.
Prices for fabricated structural metal products showed no change after
increasing in November.  On the other hand, the index for millwork turned
up 0.1 percent following a 0.2-percent decline in the previous month.
Prices for steel wire and for air conditioning and refrigeration equipment
also turned up after falling in November.

Crude goods

     The Producer Price Index for Crude Materials for Further Processing
declined 5.6 percent in December, seasonally adjusted, following a 1.6-
percent advance in November.  Prices for crude energy materials fell after
rising a month earlier.  The indexes for basic industrial materials and
crude foodstuffs and feedstuffs decreased more than last month.  (See table
B.)
     
     Prices for crude energy materials dropped 12.6 percent in December,
following a 5.0-percent gain a month earlier.  From December 1996 to
December 1997, this index declined 23.9 percent after advancing 51.2
percent during 1996.  In December, the index for natural gas declined 18.7
percent after an 11.0-percent advance in the prior month.  Prices for crude
petroleum fell more than in the previous month.  By contrast, the index for
coal rose 2.0 percent following a 0.7-percent decrease last month.
     
     The index for crude nonfood materials less energy declined 1.5 percent
in December, following a 0.7-percent decline in the prior month.  This
index increased 0.1 percent during 1997 following a 5.5-percent decrease in
the previous year.  In December, prices for raw cotton decreased 11.4
percent after a 3.1-percent increase one month ago.  The index for iron and
steel scrap rose less than one month earlier.  Prices for gold ores and
copper base scrap fell more than in the previous month.  The indexes for
cattle hides and softwood logs, bolts, and timber fell after rising in
November.  By contrast, prices for leaf tobacco rose 8.3 percent following
a 2.9-percent decline in the previous month.  The indexes for copper ores
and wastepaper fell less than last month.
     
     Prices for crude foodstuffs and feedstuffs declined 0.7 percent in
December, following a 0.3-percent decline in the prior month.  During 1997,
this index declined 4.2 percent after declining 1.0 percent in the previous
year.  In December, the index for slaughter hogs decreased 7.8 percent
after a 7.4-percent increase a month earlier.  Prices for soybeans,
slaughter turkeys, and unprocessed shellfish also turned down after rising
in November.  The index for fluid milk rose less than in the previous
month.  By contrast, prices for slaughter cattle advanced 1.7 percent after
a 3.4-percent decline in the prior month.  The indexes for fresh fruits and
melons, slaughter broilers and fryers, and unprocessed finfish also turned
up after falling a month earlier.  Prices for fresh and dry vegetables fell
less than one month ago.

Net output price indexes for mining, manufacturing, and other industries

Mining.  The Producer Price Index for the net output of total domestic
mining industries fell 9.9 percent in December, following a 3.6-percent
advance in November.  (Net output price indexes are not seasonally
adjusted.)  The index for the oil and gas extraction industry group fell
12.6 percent after a 5.3-percent rise in the previous month.  Prices for
the nonmetalic minerals mining industry group decreased 0.2 percent after
increasing 0.4 percent one month ago.  By contrast, prices for the coal
mining industry group rose 1.3 percent after falling 0.4 percent last
month.  The index for the metal mining industry group fell 6.0 percent
after declining 7.0 percent in the prior month.  In December, the Producer
Price Index for the net output of total domestic mining industries stood at
82.8 (December 1984=100), 20.5 percent below its year-ago level.
                                    -5-
Manufacturing.  The Producer Price Index for the net output of total
domestic manufacturing industries declined 0.4 percent in December,
following a 0.2-percent decrease in November.  In December, prices for the
food and kindred products, petroleum refining, and primary metal industry
groups fell more than in the prior month.  The indexes for the leather and
leather products, nonmetallic mineral products, and electrical and
electronic machinery industry groups declined after advancing in the
previous month.  By contrast, prices for the tobacco manufactures, paper
and allied products, and printing and publishing industry groups rose more
than in the prior month.  Prices for the textile mill products, machinery
(except electrical) and miscellaneous manufacturing industries industry
groups showed no change after falling.  In December, the Producer Price
Index for the net output of the total domestic manufacturing sector stood
at 127.0 (December 1984=100), 0.8 percent below its year-ago level.

Other.  Among other industries in December, prices for local trucking
without storage, real estate agents and managers, scheduled air
transportation, deep sea foreign transportation of freight, airports and
airport services, and psychiatric hospitals rose after falling in November.
Prices for cable and other pay television services, building cleaning and
maintenance services, and legal services rose more than in the previous
month.  Prices for trucking (except local) and telephone communications
fell less than a month ago.  Prices for crude petroleum pipelines showed no
change after falling.  Conversely, the indexes for radio broadcasting and
specialty hospitals, except psychiatric, rose less than in the prior month.
The indexes for deep sea domestic transportation of freight, travel
agencies, hotels and motels, and advertising agencies fell after rising.
The indexes for railroads, line-haul operating, help supply services,
marine cargo handling, and architectural services showed no change after
rising in November.

                                   *****
            Producer Price Index data for January 1998 will be
         released on Wednesday, February 18, at 8:30 a.m. (E.S.T.)
                                   *****
Information in this news release will be made available to sensory impaired
individuals upon request.  Voice phone: 202-606-7828; TDD phone: 202-606-
5897; TDD Message Referral phone: 1-800-326-2577.

The following is the schedule of 1998 release dates for Producer Price
Index data:
Reference Month               Release Date
January 1998             	Wednesday, February 18
February            		Friday, March 13
March                    	Thursday, April 9
April                 		Wednesday, May 13
May                		Friday, June 12
June        		      Friday, July 10
July                		Friday, August 14
August                   	Friday, September 11
September           		Thursday, October 15
October             		Friday, November 13
November            		Friday, December 11
December                 	Wednesday, January 13, 1999

                                    -6-

PPI Commodity Weight Allocations to Stage-of-Processing Indexes to be
Updated

Effective with the release of January 1998 data on February 18, 1998, the
Bureau of Labor Statistics will update the weight allocations used to
calculate the stage-of-processing (SOP) indexes, found in table 1 of the
press release and of the PPI Detailed Report, to more accurately reflect
recent marketing patterns.  While PPI weights will continue to be based on
shipment values from the 1992 economic census, the proportion of these
weights allocated to the various SOP categories within and, in some cases,
across the Finished, Intermediate, and Crude goods stages will change.  The
new allocations will be based primarily on data contained in the
Input/Output Accounts published by the Bureau of Economic Analysis.

It is important to note that the allocation update will not change the PPI
classification system, reference base, or aggregation structure.  It may,
however, result in significant shifts in the relative importance of
component series in the stage-of-processing indexes.  The allocation update
will not affect the industry SOP indexes found in tables 10 and 11 of the
PPI Detailed Report.

Relative importances as of December 1997, based on both the former and
revised weight allocations, will be available on February 13, 1998, two
working days before release of the January 1998 PPI, on the BLS ftp site at
ftp://stats.bls.gov.  Choose the "pub" directory, the "special.requests"
directory, and the "ppi" directory.  The revised SOP relative importances
will be in the file, "sopnew.txt". The information may also be requested
from the Division of Industrial Prices and Price Indexes, Section of Index
Analysis, at 202-606-7705.  For further information on this change, please
contact Angelo Maggi on (202) 606-7729, or Scott Sager on (202) 606-7700,
ext. 211.

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|                       |Dec. 1997 from:|
                                                 |          |_______________________|_______________|_______________________________
                                                 |   Dec.   |       |       |       |       |       |       |         |
                                                 |           Aug.   |Nov.   |Dec.   |  Dec. | Nov.  |Sept.to|Oct.  to |Nov.  to
                                                 |   1996 1/|1997 2/|1997 2/|1997 2/|  1996 | 1997  |  Oct. |   Nov.  |  Dec.
_________________________________________________|__________|_______|_______|_______|_______|_______|_______|_________|____________
                                                 |
Finished goods...................................|  100.000   131.7   131.8   131.1    -1.2   -0.5      0.1     -0.2    -0.2
  Finished consumer goods........................|   76.423   130.3   130.1   129.4    -1.4    -.5       .2      -.2     -.1
    Finished consumer foods......................|   23.644   134.9   134.5   134.2    -1.0    -.2       .4      -.1     -.1
      Crude......................................|    1.639   117.3   129.4   133.0    -1.3    2.8      9.2     -1.2     3.5
      Processed..................................|   22.005   136.1   134.9   134.2    -1.0    -.5      -.3      0       -.3
    Finished consumer goods, excluding foods.....|   52.779   128.1   128.1   127.2    -1.5    -.7       .1      -.3     -.1
      Nondurable goods less foods................|   36.392   124.8   123.8   122.8    -1.9    -.8      0        -.2     -.1
      Durable goods..............................|   16.387   132.3   134.4   133.9     -.8    -.4       .1      -.3     -.2
  Capital equipment..............................|   23.577   137.7   138.4   138.0     -.5    -.3      -.1      -.1     -.2
    Manufacturing industries.....................|    6.028   137.5   137.9   137.7      .2    -.1      0        0       -.1
    Nonmanufacturing industries..................|   17.549   137.7   138.5   138.1     -.6    -.3      -.1      -.1     -.2
                                                 |
Intermediate materials, supplies, and components.|  100.000   125.8   125.6   125.0     -.8    -.5      -.1       .2     -.2
  Materials and components for manufacturing.....|   49.031   128.3   128.4   128.0     -.2    -.3      -.1       .1     -.3
    Materials for food manufacturing.............|    3.318   122.9   124.4   123.0     -.6   -1.1      -.5      2.0    -1.0
    Materials for nondurable manufacturing.......|   15.610   129.7   130.5   130.3      .4    -.2      0         .2     -.2
    Materials for durable manufacturing..........|   10.965   133.2   132.2   131.4     0      -.6      -.4      -.2     -.7
    Components for manufacturing.................|   19.138   126.2   126.0   125.9     -.6    -.1      0        0       -.1
  Materials and components for construction......|   12.691   147.1   146.6   146.6     1.3    0        -.2       .2     -.1
  Processed fuels and lubricants.................|   13.665    90.0    88.2    86.2    -7.0   -2.3       .5       .5    -1.0
    Manufacturing industries ....................|    5.415    92.3    91.1    89.2    -6.0   -2.1       .2      1.4    -1.3
    Nonmanufacturing industries..................|    8.250    88.5    86.4    84.2    -7.7   -2.5       .6      -.1     -.9
  Containers.....................................|    3.527   133.4   137.3   139.6     1.2    1.7      1.0       .4     1.6
  Supplies.......................................|   21.086   135.8   136.0   135.9      .3    -.1      -.2       .1     -.1
    Manufacturing industries.....................|    7.535   139.5   140.3   140.2     1.0    -.1       .4       .1     0
    Nonmanufacturing industries..................|   13.551   133.9   133.8   133.7     -.1    -.1      -.6       .2     -.1
      Feeds......................................|    1.607   127.5   123.4   123.0    -4.3    -.3     -7.4      1.0     -.8
      Other supplies.............................|   11.944   134.8   135.3   135.2      .5    -.1       .3       .1     0
                                                 |
Crude materials for further processing...........|  100.000   107.5   113.8   107.4   -11.7   -5.6      4.0      1.6    -5.6
  Foodstuffs and feedstuffs......................|   38.004   111.6   110.2   108.8    -4.2   -1.3      0        -.3     -.7
  Nonfood materials..............................|   61.996   100.9   112.0   102.5   -16.3   -8.5      6.6      2.9    -8.7
    Nonfood materials except fuel 3/.............|   36.095   102.3   101.6    98.4    -9.7   -3.1      2.3     -1.2    -3.5
      Manufacturing 3/...........................|   32.588    93.7    93.1    89.8   -10.9   -3.5      2.7     -1.4    -3.8
      Construction...............................|    3.507   201.9   199.9   199.6      .6    -.2      -.8      0       0
    Crude fuel 4/................................|   25.901    88.9   119.2    99.9   -25.5  -16.2     14.5      9.5   -16.2
      Manufacturing industries...................|    5.258    87.3   114.3    97.0   -24.0  -15.1     13.3      8.8   -15.1
      Nonmanufacturing industries................|   20.643    90.5   122.1   101.9   -25.9  -16.5     14.9      9.7   -16.5
                                                 |
               Special groupings                 |
                                                 |
Finished goods, excluding foods..................|5/ 76.356   130.7   130.9   130.2    -1.1    -.5      0        -.2     -.2
Intermediate materials less foods and feeds......|6/ 95.065   125.8   125.6   125.2     -.7    -.3       .1       .1     -.2
Intermediate foods and feeds.....................|6/  4.935   124.6   124.3   123.3    -1.8    -.8     -2.8      1.6     -.9
Crude materials less agricultural products 3/ 7/.|8/ 59.898   100.4   111.9   102.1   -16.7   -8.8      6.8      3.0    -8.9
                                                 |
Finished energy goods............................|5/ 14.720    84.2    82.0    80.2    -6.4   -2.2       .1      -.8     -.2
Finished goods less energy.......................|5/ 85.280   139.9   140.6   140.3     -.2    -.2       .1      -.1     -.1
Finished consumer goods less energy..............|5/ 61.703   140.7   141.4   141.1     -.2    -.2       .1      -.1     0
                                                 |
Finished goods less foods and energy.............|5/ 61.636   141.8   142.9   142.7      .1    -.1      0        -.1     -.1
Finished consumer goods less foods and energy....|5/ 38.059   144.4   145.7   145.6      .3    -.1       .1      -.1     -.1
Consumer nondurable goods less foods and energy..|5/ 21.672   153.3   153.9   154.1     1.2     .1      -.1       .1      .1
                                                 |
Intermediate energy goods........................|6/ 13.796    89.7    88.0    85.9    -7.0   -2.4       .5       .5    -1.0
Intermediate materials less energy...............|6/ 86.204   133.7   133.8   133.7      .2    -.1      -.1       .1     -.1
Intermediate materials less foods and energy.....|6/ 81.269   134.2   134.4   134.3      .3    -.1       .1       .1     -.1
                                                 |
Crude energy materials 3/........................|8/ 42.427    79.7    95.4    83.4   -23.9  -12.6     10.7      5.0   -12.6
Crude materials less energy......................|8/ 57.573   123.3   121.4   120.0    -2.8   -1.2       .1      -.4    -1.1
Crude nonfood materials less energy 4/...........|8/ 19.569   157.5   154.1   152.7      .1    -.9       .3      -.7    -1.5
                                                 |
____________________________________________________________________________________________________________________________________

  1/  Comprehensive relative importance figures are initially computed          3/  Includes crude petroleum.
      after the publication of December indexes and are recalculated            4/  Excludes crude petroleum.
      after final December indexes are available.  The first-published          5/  Percent of total finished goods.
      and final December relative importances initially appear,                 6/  Percent of total intermediate materials.
      respectively, in the release tables containing January and May data.      7/  Formerly titled "Crude materials for
  2/  The indexes for Aug. 1997 have been recalculated to incorporate               further processing, excluding crude
      late reports and corrections by respondents.  All indexes                     foodstuffs and feedstuffs, plant and
      are subject to revision four months after original publication.               animal fibers, oilseeds, and leaf tobacco."
                                                                                8/  Percent of total crude materials.
Table 2.  Producer Price Indexes and percent changes for selected commodity groupings by stage of processing
(1982=100 unless otherwise indicated)
____________________________________________________________________________________________________________________________________
           |                                                       |                       |Unadjusted     |
           |                                                       |                       | percent       |Seasonally adjusted
           |                                                       |   Unadjusted index    |change to      |percent change from:
 Commodity |                                                       |                       |Dec. 1997 from:|
   code    |                      Grouping                         |_______________________|_______________|________________________
           |                                                       |       |       |       |       |       |       |       |
           |                                                       |Aug.   |Nov.   |Dec.   | Dec.  | Nov.  |Sept.to|Oct. to|Nov. to
           |                                                       |1997 1/|1997 1/|1997 1/| 1996  | 1997  |  Oct. |  Nov. |  Dec.
___________|_______________________________________________________|_______|_______|_______|_______|_______|_______|_______|________
           |                                                       |
           |FINISHED GOODS.........................................| 131.7   131.8   131.1    -1.2   -0.5      0.1    -0.2    -0.2
           | FINISHED CONSUMER GOODS...............................| 130.3   130.1   129.4    -1.4    -.5       .2     -.2     -.1
           |  FINISHED CONSUMER FOODS..............................| 134.9   134.5   134.2    -1.0    -.2       .4     -.1     -.1
           |                                                       |
01-11      |   Fresh fruits and melons 2/..........................|  82.4    87.8   107.3    -9.6   22.2      4.2    -8.6    22.2
01-13      |   Fresh and dry vegetables 2/.........................| 131.7   130.0   126.8    21.6   -2.5     16.8   -11.0    -2.5
01-71-07   |   Eggs for fresh use (Dec. 1991=100) 2/...............|  88.0   117.7   109.7   -15.6   -6.8    -10.0    30.6    -6.8
02-11      |   Bakery products 2/..................................| 174.0   174.6   174.6      .9    0         .1     0       0
02-13      |   Milled rice 2/......................................| 125.8   127.2   127.1      .2    -.1      2.1      .4     -.1
02-14-02   |   Pasta products (June 1985=100) 2/...................| 123.6   123.6   123.6    -2.6    0         .1      .1     0
02-21-01   |   Beef and veal.......................................| 104.5   103.9   101.4    -5.5   -2.4     -1.0    -2.2    -1.5
02-21-04   |   Pork................................................| 132.3   111.0   109.8   -13.9   -1.1     -6.4     1.5    -1.9
02-22-03   |   Processed young chickens............................| 122.0   115.2   112.9   -10.1   -2.0     -1.3     -.2     -.8
02-22-06   |   Processed turkeys 2/................................|  99.7   102.9    99.0    -3.4   -3.8      0        .5    -3.8
02-23      |   Finfish and shellfish...............................| 166.8   190.0   182.7     5.2   -3.8      7.4    -1.3    -2.0
02-3       |   Dairy products......................................| 126.0   134.1   134.2     4.8     .1      1.7     3.0      .8
02-4       |   Processed fruits and vegetables 2/..................| 125.9   124.9   124.7    -2.7    -.2       .2     -.6     -.2
02-55      |   Confectionery end products 2/.......................| 168.5   168.4   168.2      .5    -.1      -.2      .3     -.1
02-62      |   Soft drinks.........................................| 133.0   132.4   132.3    -1.0    -.1      -.2     0       0
02-63-01   |   Roasted coffee 2/...................................| 167.4   152.4   151.2    18.1    -.8     -2.7    -5.1     -.8
02-76      |   Shortening and cooking oils 2/......................| 135.8   144.5   136.9      .7   -5.3      4.2     1.5    -5.3
           |                                                       |
           |  FINISHED CONSUMER GOODS EXCLUDING FOODS..............| 128.1   128.1   127.2    -1.5    -.7       .1     -.3     -.1
           |                                                       |
02-61      |   Alcoholic beverages.................................| 135.8   133.8   134.3     -.7     .4      -.2     -.1      .5
03-81-01   |   Women's apparel 2/..................................| 120.7   120.2   120.5      .3     .2      -.9      .8      .2
03-81-02   |   Men's and boys' apparel.............................| 133.0   133.0   133.0      .5    0         .2      .2      .2
03-81-03   |   Girls', children's, and infants' apparel 2/.........| 122.6   122.5   122.5    -1.1    0        -.4     -.1     0
03-82      |   Textile housefurnishings 2/.........................| 122.3   122.7   122.9     -.8     .2      0        .1      .2
04-3       |   Footwear............................................| 144.3   144.2   144.2     1.3    0        -.8     -.1     0
05-41      |   Residential electric power (Dec. 1990=100)..........| 116.0   110.6   110.3     -.2    -.3       .5     -.7     -.3
05-51      |   Residential gas (Dec. 1990=100).....................| 113.4   122.3   119.0     1.4   -2.7      2.9     3.8    -4.7
05-71      |   Gasoline............................................|  73.7    68.0    64.7   -14.9   -4.9     -3.6    -3.1    -1.9
05-73-02-01|   Fuel oil No. 2......................................|  61.6    66.5    60.8   -21.5   -8.6      2.1     5.4    -5.6
06-35      |   Pharmaceutical preps, ethical (Prescription)........| 273.5   276.4   276.9     3.4     .2       .9      .3     -.1
06-36      |   Pharmaceutical preps,proprietary (Over-counter).....| 184.3   184.4   185.0      .3     .3      0       -.2      .2
06-71      |   Soaps and synthetic detergents 2/...................| 126.3   126.9   126.9     1.1    0         .3     0       0
06-75      |   Cosmetics and other toilet preparations 2/..........| 130.3   130.6   130.4      .2    -.2       .2      .2     -.2
07-12      |   Tires, tubes, tread, etc 2/.........................|  94.8    94.1    93.9    -3.4    -.2       .2    -1.4     -.2
09-15-01   |   Sanitary papers and health products 2/..............| 147.8   145.9   145.7    -2.5    -.1      -.9     -.3     -.1
09-31-01   |   Newspaper circulation...............................| 201.9   202.1   202.1      .2    0        -.9     0        .5
09-32-01   |   Periodical circulation..............................| 187.7   189.2   188.9     3.7    -.2      -.2      .1      .1
09-33      |   Book publishing 2/..................................| 198.2   203.5   203.6     3.2    0        1.1     1.5     0
12-1       |   Household furniture 2/..............................| 146.3   146.8   146.8     1.1    0        0        .2     0
12-3       |   Floor coverings 2/..................................| 128.5   127.2   127.6     -.2     .3       .4     -.5      .3
12-4       |   Household appliances 2/.............................| 109.7   109.3   109.0    -2.6    -.3      -.2     -.1     -.3
12-5       |   Home electronic equipment 2/........................|  76.1    76.0    76.0    -2.9    0        -.1    -2.9     0
12-62      |   Household glassware 2/..............................| 161.9   162.6   162.4     2.8    -.1      0        .4     -.1
12-64      |   Household flatware 2/...............................| 138.4   138.4   139.2      .4     .6      0       0        .6
12-66      |   Lawn and garden equip., ex. tractors 2/.............| 132.7   130.4   131.1    -1.5     .5       .1     -.2      .5
14-11-01   |   Passenger cars......................................| 130.0   135.7   134.6    -1.7    -.8       .7     -.6     -.4
15-11      |   Toys, games, and children's vehicles................| 125.3   125.0   125.0     -.2    0         .3     -.2      .1
15-12      |   Sporting and athletic goods 2/......................| 125.3   125.3   125.0     1.7    -.2      0       -.4     -.2
15-2       |   Tobacco products 2/.................................| 247.8   256.0   257.9     7.8     .7      0        .1      .7
15-5       |   Mobile homes 2/.....................................| 152.7   153.1   152.8      .9    -.2      0        .3     -.2
15-94-02   |   Jewelry, platinum, & karat gold 2/..................| 128.6   129.2   128.7     -.6    -.4       .5    -1.8     -.4
15-94-04   |   Costume jewelry and novelties 2/....................| 140.9   141.0   140.9      .8    -.1       .1     0       -.1
           |                                                       |
           | CAPITAL EQUIPMENT.....................................| 137.7   138.4   138.0     -.5    -.3      -.1     -.1     -.2
           |                                                       |
11-1       |   Agricultural machinery and equipment 2/.............| 149.1   148.4   148.3      .4    -.1       .3      .1     -.1
11-2       |   Construction machinery and equipment................| 142.1   142.8   142.8     1.7    0         .6     -.1     0
11-37      |   Metal cutting machine tools 2/......................| 157.0   157.7   158.4     2.5     .4      0        .3      .4
11-38      |   Metal forming machine tools 2/......................| 154.8   154.8   155.1     2.9     .2       .2     -.4      .2
11-39      |   Tools, dies, jigs, fixtures, and ind. molds 2/......| 138.4   138.7   138.3      .7    -.3       .4     0       -.3
11-41      |   Pumps, compressors, and equipment...................| 146.8   147.3   147.4     2.1     .1       .2     0        .1
11-44      |   Industrial material handling equipment 2/...........| 130.1   130.2   130.2     1.4    0         .2      .1     0
11-51      |   Electronic computers (Dec. 1990=100) 2/.............|  31.7    30.3    29.8   -21.4   -1.7      0      -2.6    -1.7
11-62      |   Textile machinery 2/................................| 152.4   152.5   152.3     1.9    -.1      -.1      .1     -.1
11-64      |   Paper industries machinery (June 1982=100)..........| 157.5   158.0   158.0     2.1    0         .3     0        .1
11-65      |   Printing trades machinery 2/........................| 138.7   139.3   139.2      .9    -.1      -.1      .4     -.1
11-74      |   Transformers and power regulators 2/................| 129.9   130.7   128.9     -.6   -1.4      -.5      .9    -1.4
11-76      |   Communication & related equip. (Dec. 1985=100) 2/...| 114.2   114.7   114.6      .6    -.1      -.1      .4     -.1
11-79-05   |   X-ray and electromedical equipment 2/...............| 107.2   106.8   106.8    -1.2    0        -.1     -.3     0
11-91      |   Oil field and gas field machinery 2/................| 123.0   124.4   124.4     4.2    0         .7      .6     0
11-92      |   Mining machinery and equipment 2/...................| 140.9   141.1   141.6     1.7     .4       .1     0        .4
11-93      |   Office and store machines and equipment 2/..........| 112.6   112.6   112.5      .7    -.1      0       0       -.1
12-2       |   Commercial furniture 2/.............................| 154.3   155.0   155.1     1.1     .1      -.3      .4      .1
14-11-05   |   Light motor trucks..................................| 156.5   159.7   157.4    -3.1   -1.4      -.7     -.8    -1.4
14-11-06   |   Heavy motor trucks..................................| 141.6   139.6   139.8      .6     .1     -1.4      .7      .1
14-14      |   Truck trailers 2/...................................| 129.7   129.8   130.0     -.2     .2      0        .1      .2
14-21-02   |   Civilian aircraft (Dec. 1985=100)...................| 150.2   150.1   150.1      .5    0        -.2     -.2      .3
14-31      |   Ships (Dec. 1985=100) 2/............................| 144.8   145.3   145.3     3.0    0        -.2      .6     0
14-4       |   Railroad equipment..................................| 133.5   135.6   134.7    -1.2    -.7       .7      .8     -.7
           |                                                       |
           |INTERMEDIATE MATERIALS, SUPPLIES, AND COMPONENTS.......| 125.8   125.6   125.0     -.8    -.5      -.1      .2     -.2
           |                                                       |
           | INTERMEDIATE FOODS AND FEEDS..........................| 124.6   124.3   123.3    -1.8    -.8     -2.8     1.6     -.9
           |                                                       |
02-12-03   |   Flour 2/............................................| 116.3   115.1   113.3    -8.6   -1.6     -1.9     -.4    -1.6
02-53      |   Refined sugar 2/....................................| 123.1   120.2   119.7    -4.4    -.4     -1.7    -1.1     -.4
02-54      |   Confectionery materials.............................| 107.8    96.9    92.1   -17.3   -5.0    -10.8      .7    -4.9
02-72      |   Crude vegetable oils 2/.............................| 110.6   126.2   126.4    14.8     .2      6.5     5.3      .2
02-9       |   Prepared animal feeds 2/............................| 131.7   128.0   127.7    -3.3    -.2     -6.4      .9     -.2
           |                                                       |
           | INTERMEDIATE MATERIALS LESS FOODS AND FEEDS...........| 125.8   125.6   125.2     -.7    -.3       .1      .1     -.2
           |                                                       |
03-1       |   Synthetic fibers 2/.................................| 111.0   110.5   110.2    -1.3    -.3       .2     -.1     -.3
03-2       |   Processed yarns and threads 2/......................| 113.6   113.6   113.3    -1.1    -.3       .2     -.3     -.3
03-3       |   Gray fabrics 2/.....................................| 121.7   121.4   121.8      .2     .3      -.2     -.6      .3
03-4       |   Finished fabrics....................................| 123.8   124.0   123.7      .1    -.2      -.2     -.1      .2
03-83-03   |   Industrial textile products 2/......................| 127.5   128.0   127.8      .2    -.2       .2     -.1     -.2
04-2       |   Leather.............................................| 178.0   184.7   182.9      .2   -1.0      1.3     1.4    -1.1
05-32      |   Liquefied petroleum gas 2/..........................|  75.8    85.0    81.9   -28.6   -3.6      5.2     2.5    -3.6
____________________________________________________________________________________________________________________________________
See footnotes at end of table.


Table 2.  Producer Price Indexes and percent changes for selected commodity groupings by stage of processing - Continued
(1982=100 unless otherwise indicated)
____________________________________________________________________________________________________________________________________
           |                                                       |                       |Unadjusted     |
           |                                                       |                       | percent       |Seasonally adjusted
           |                                                       |   Unadjusted index    |change to      |percent change from:
 Commodity |                                                       |                       |Dec. 1997 from:|
   code    |                      Grouping                         |_______________________|_______________|________________________
           |                                                       |       |       |       |       |       |       |       |
           |                                                       |Aug.   |Nov.   |Dec.   | Dec.  | Nov.  |Sept.to|Oct. to|Nov. to
           |                                                       |1997 1/|1997 1/|1997 1/| 1996  | 1997  |  Oct. |  Nov. |  Dec.
___________|_______________________________________________________|_______|_______|_______|_______|_______|_______|_______|________
           |                                                       |
           | INTERMEDIATE MATERIALS LESS FOODS AND FEEDS           |
           |   -Continued..........................................|
05-42      |   Commercial electric power...........................| 138.1   127.3   128.1     0.5    0.6      0.2    -0.3     0.7
05-43      |   Industrial electric power...........................| 134.7   127.7   128.5      .6     .6      -.7     1.7     0
05-52      |   Commercial natural gas (Dec. 1990=100)..............| 103.7   119.2   116.1     1.0   -2.6      4.2     3.9    -4.2
05-53      |   Industrial natural gas (Dec. 1990=100)..............| 100.6   120.7   115.3     2.1   -4.5      7.9     5.0    -6.1
05-54      |   Natural gas to electric utilities (Dec. 1990=100)...|  85.9   111.6   107.2     8.5   -3.9      7.6    12.0    -5.2
05-72-03   |   Jet fuels...........................................|  59.7    62.7    59.2   -21.1   -5.6      1.7     -.7    -4.1
05-73-03   |   No. 2 Diesel fuel...................................|  62.1    66.1    59.0   -22.4  -10.7      2.0      .3    -6.2
05-74      |   Residual fuel 2/....................................|  55.4    61.9    54.2   -15.8  -12.4       .5     6.2   -12.4
06-1       |   Industrial chemicals 2/.............................| 126.7   127.3   127.0     -.4    -.2      -.1      .1     -.2
06-21      |   Prepared paint......................................| 152.4   152.4   152.4     1.5    0         .4     -.2     -.3
06-22      |   Paint materials 2/..................................| 142.6   142.4   142.5     2.2     .1      -.1      .1      .1
06-31      |   Medicinal and botanical chemicals 2/................| 133.4   134.8   134.8     4.5    0        1.4     -.1     0
06-4       |   Fats and oils, inedible 2/..........................| 121.7   143.7   143.1     4.0    -.4      8.1     6.4     -.4
06-51      |   Mixed fertilizers...................................| 113.4   113.6   113.3      .2    -.3       .7      .1      .3
06-52-01   |   Nitrogenates........................................| 129.5   124.8   119.3   -12.8   -4.4     -3.2    -3.3    -5.4
06-52-02   |   Phosphates 2/.......................................| 110.0   111.1   111.2     -.5     .1      -.6     -.1      .1
06-53      |   Other agricultural chemicals........................| 148.0   150.1   150.2     2.2     .1       .7     1.7     -.1
06-6       |   Plastic resins and materials 2/.....................| 137.4   134.3   133.2    -3.3    -.8       .5    -1.8     -.8
07-11-02   |   Synthetic rubber 2/.................................| 118.1   118.4   118.2    -2.5    -.2      -.2     -.1     -.2
07-21      |   Plastic construction products 2/....................| 129.2   128.0   128.1    -1.7     .1      -.1      .2      .1
07-22      |   Unsupported plastic film, sheet, & other shapes.....| 132.2   131.9   131.7    -1.0    -.2      -.6     -.1      .1
07-26      |   Plastic parts and components for manufacturing 2/...| 117.2   117.1   117.1     -.3    0        0        .1     0
08-11      |   Softwood lumber 2/..................................| 209.1   196.9   196.7    -2.8    -.1     -4.0     1.8     -.1
08-12      |   Hardwood lumber 2/..................................| 175.6   177.8   178.5     7.5     .4       .6      .2      .4
08-2       |   Millwork 2/.........................................| 171.4   170.6   170.8      .9     .1      -.2     -.2      .1
08-3       |   Plywood 2/..........................................| 161.6   157.9   153.9     -.9   -2.5     -3.9     1.2    -2.5
09-11      |   Woodpulp 2/.........................................| 132.7   133.0   133.3     4.0     .2       .2     -.2      .2
09-13      |   Paper 2/............................................| 145.2   146.8   147.4     3.7     .4       .3      .6      .4
09-14      |   Paperboard..........................................| 143.8   155.8   156.0     5.7     .1       .3     3.2      .2
09-15-03   |   Paper boxes and containers 2/.......................| 140.2   146.7   151.8     3.0    3.5      1.7      .4     3.5
09-2       |   Building paper and board 2/.........................| 127.0   135.2   134.6      .7    -.4     -1.1     6.4     -.4
09-37      |   Commercial printing (June 1982=100) 2/..............| 148.5   151.1   151.1     2.0    0        1.4      .2     0
10-15      |   Foundry and forge shop products.....................| 134.1   134.2   134.2      .9    0         .1      .1     0
10-17      |   Steel mill products 2/..............................| 116.6   116.9   116.2      .5    -.6      0       0       -.6
10-22      |   Primary nonferrous metals 2/........................| 127.6   120.2   116.9    -3.8   -2.7     -3.2    -2.0    -2.7
10-25-01   |   Aluminum mill shapes 2/.............................| 148.1   149.5   149.5     6.6    0        -.7      .1     0
10-25-02   |   Copper and brass mill shapes 2/.....................| 179.0   169.2   167.8    -5.3    -.8       .1    -2.8     -.8
10-26      |   Nonferrous wire and cable 2/........................| 148.4   145.9   144.2    -2.2   -1.2      -.6    -1.0    -1.2
10-3       |   Metal containers 2/.................................| 107.8   107.7   107.7    -1.3    0        0       -.1     0
10-4       |   Hardware............................................| 145.9   145.9   146.1     1.3     .1       .2     -.3      .1
10-5       |   Plumbing fixtures and brass fittings................| 174.9   175.0   174.7     1.9    -.2       .2      .2      .1
10-6       |   Heating equipment...................................| 152.8   153.3   153.9     1.3     .4       .1      .5      .5
10-7       |   Fabricated structural metal products................| 140.8   141.5   141.3     1.9    -.1       .4      .3     0
10-88      |   Fabricated ferrous wire products (June 1982=100) 2/.| 128.6   129.2   129.0     1.6    -.2       .5     -.1     -.2
10-89      |   Other misc. metal products 2/.......................| 126.3   126.3   126.3      .2    0         .1     0       0
11-45      |   Mechanical power transmission equipment.............| 154.7   155.3   156.0     2.3     .5       .4      .3      .2
11-48      |   Air conditioning and refrigeration equipment........| 132.8   132.5   132.7     -.2     .2      -.1     -.5      .4
11-49-02   |   Metal valves, ex.fluid power (Dec. 1982=100) 2/.....| 154.2   154.0   154.1     2.1     .1       .2     0        .1
11-49-05   |   Ball and roller bearings............................| 163.7   163.3   163.5     2.5     .1      -.9      .6     0
11-71      |   Wiring devices......................................| 154.4   154.6   154.7     1.8     .1      0        .1      .1
11-73      |   Motors, generators, motor generator sets............| 144.8   144.6   144.2     0      -.3       .5     -.3     -.2
11-75      |   Switchgear, switchboard, etc., equipment............| 145.7   147.1   146.9     2.0    -.1       .3      .7     -.3
11-78      |   Electronic components and accessories 2/............| 103.0   102.4   102.0    -4.9    -.4      -.2     -.3     -.4
11-94      |   Internal combustion engines.........................| 140.2   140.5   140.5      .6    0         .2      .5     0
11-95      |   Machine shop products 2/............................| 135.3   135.4   135.3      .4    -.1      0        .1     -.1
13-11      |   Flat glass 2/.......................................| 108.5   108.6   108.5    -1.3    -.1       .8      .2     -.1
13-22      |   Cement..............................................| 140.9   140.5   140.7     3.5     .1       .4      .5      .8
13-3       |   Concrete products...................................| 136.1   136.8   136.8     1.6    0         .4      .1     -.1
13-6       |   Asphalt felts and coatings 2/.......................| 100.4    99.2    98.8     -.9    -.4      -.9     -.1     -.4
13-7       |   Gypsum products 2/..................................| 168.9   172.8   172.0     7.0    -.5      2.4     -.6     -.5
13-8       |   Glass containers 2/.................................| 125.5   125.9   125.9    -1.2    0        0        .2     0
14-12      |   Motor vehicle parts 2/..............................| 115.2   114.9   114.9    -1.1    0         .1     0       0
14-23      |   Aircraft engines & engine parts (Dec. 1985=100).....| 135.3   133.8   135.3     -.2    1.1      0      -1.1     1.0
14-25      |   Aircraft parts & aux.equip.,nec (June 1985=100) 2/..| 141.0   140.1   140.0      .4    -.1      -.1      .1     -.1
15-42      |   Photographic supplies 2/............................| 129.9   129.9   130.6      .7     .5      0       0        .5
15-6       |   Medical/surgical/personal aid devices...............| 143.2   142.8   142.8     -.1    0         .4     0       -.1
           |                                                       |
           | CRUDE MATERIALS FOR FURTHER PROCESSING................| 107.5   113.8   107.4   -11.7   -5.6      4.0     1.6    -5.6
           |                                                       |
           |  CRUDE FOODSTUFFS AND FEEDSTUFFS......................| 111.6   110.2   108.8    -4.2   -1.3      0       -.3     -.7
           |                                                       |
01-21      |   Wheat 2/............................................| 103.2   101.8   101.1   -11.3    -.7     -2.1     -.4     -.7
01-22-02-05|   Corn................................................| 104.4   106.7   107.9     2.2    1.1      4.0    -4.4    -4.2
01-31      |   Slaughter cattle....................................|  97.3    98.5    97.4     2.0   -1.1       .3    -3.4     1.7
01-32      |   Slaughter hogs......................................|  93.8    74.4    71.5   -21.7   -3.9     -5.5     7.4    -7.8
01-41-02   |   Slaughter broilers/fryers...........................| 156.7   122.7   117.3   -25.5   -4.4     -8.4    -5.8     1.8
01-42      |   Slaughter turkeys...................................| 121.9   123.2   112.7   -10.5   -8.5     -9.6     7.8    -2.2
01-6       |   Fluid milk..........................................|  93.7   103.0   104.7     2.1    1.7      2.4     4.9     4.0
01-83-01-31|   Soybeans............................................| 124.5   124.5   117.8     1.8   -5.4      4.1      .9    -7.4
02-52-01-01|   Cane sugar,raw 2/...................................| 118.4   116.4   116.5    -1.2     .1      0      -1.6      .1

           |                                                       |
           |  CRUDE NONFOOD MATERIALS..............................| 100.9   112.0   102.5   -16.3   -8.5      6.6     2.9    -8.7
           |                                                       |
01-51-01-01|   Raw cotton..........................................| 120.5   114.6   107.3   -11.2   -6.4      1.2     3.1   -11.4
01-92-01-01|   Leaf tobacco 2/.....................................|  94.1   103.5   112.6     -.5    8.8      4.0    -1.9     8.8
04-11      |   Cattle hides 2/.....................................| 186.2   191.1   187.3    -8.8   -2.0      1.5     4.4    -2.0
05-1       |   Coal 2/.............................................|  95.4    94.3    96.2     2.7    2.0      -.6     -.7     2.0
05-31      |   Natural gas 2/......................................|  87.1   123.2   100.2   -28.8  -18.7     17.5    11.0   -18.7
05-61      |   Crude petroleum 2/..................................|  54.9    56.4    50.8   -28.3   -9.9      7.5    -1.6    -9.9
08-5       |   Logs, timber, etc. 2/...............................| 214.8   212.0   212.5     1.4     .2     -1.9      .2      .2
09-12      |   Wastepaper 2/.......................................| 192.3   165.1   164.7    12.3    -.2     -7.4    -2.9     -.2
10-11      |   Iron ore 2/.........................................|  95.2    95.2     (3)     (3)    (3)      0       0       (3)
10-12      |   Iron and steel scrap 2/.............................| 191.7   197.0   197.8    14.9     .4      1.6     2.7      .4
10-21      |   Nonferrous metal ores (Dec. 1983=100) 2/............|  83.1    73.4    67.6   -19.4   -7.9      1.6    -9.3    -7.9
10-23-01   |   Copper base scrap 2/................................| 156.3   141.9   134.6   -14.8   -5.1     -4.9    -3.0    -5.1
10-23-02   |   Aluminum base scrap.................................| 198.1   192.8   191.8     9.7    -.5      5.7    -1.5    -3.6
13-21      |   Construction sand, gravel, and crushed stone........| 148.6   148.7   148.9     1.8     .1       .3     -.1      .4
____________________________________________________________________________________________________________________________________

1/  The indexes for August 1997 have been recalculated                               2/  Not seasonally adjusted.
    to incorporate late reports and corrections by respondents.                      3/  Not available.
    All indexes are subject to revision four months after original
    publication.

Table 3.  Producer Price Indexes for selected commodity groupings
(1982=100 unless otherwise indicated)
_______________________________________________________________________________________________
         |                                                |                                   |
         |                                                |         Unadjusted index 1/       |
Commodity|                                                |___________________________________|
  code   |                    Grouping                    | Aug. 1997 | Nov. 1997 | Dec. 1997 |
_________|________________________________________________|___________|___________|___________|
         |                                                |           |           |           |
         | Finished Goods (1967=100)......................|   369.7   |   369.9   |   368.0   |
         | All commodities................................|   127.2   |   127.8   |   126.7   |
         |                                                |           |           |           |
         |                                                |           |           |           |
         |            MAJOR COMMODITY GROUPS              |           |           |           |
         |                                                |           |           |           |
         | Farm products and processed foods and feeds....|   126.7   |   126.1   |   125.3   |
01       |   Farm products................................|   111.4   |   110.6   |   110.1   |
02       |   Processed foods and feeds....................|   134.3   |   133.7   |   132.9   |
         |                                                |           |           |           |
         | Industrial commodities.........................|   127.3   |   128.2   |   126.9   |
03       |   Textile products and apparel.................|   122.6   |   122.5   |   122.5   |
04       |   Hides, skins, leather, and related products..|   152.2   |   154.3   |   153.5   |
05       |   Fuels and related products and power 2/......|    84.9   |    87.0   |    82.8   |
06       |   Chemicals and allied products 2/.............|   143.7   |   143.9   |   143.5   |
07       |   Rubber and plastic products..................|   123.4   |   123.2   |   123.1   |
08       |   Lumber and wood products.....................|   185.0   |   181.9   |   181.9   |
09       |   Pulp, paper, and allied products.............|   167.8   |   170.4   |   171.2   |
10       |   Metals and metal products....................|   132.2   |   131.3   |   130.6   |
11       |   Machinery and equipment......................|   125.7   |   125.6   |   125.4   |
12       |   Furniture and household durables.............|   130.7   |   130.6   |   130.7   |
13       |   Nonmetallic mineral products.................|   133.5   |   133.7   |   133.7   |
14       |   Transportation equipment.....................|   140.5   |   142.0   |   141.5   |
15       |   Miscellaneous products.......................|   151.0   |   152.3   |   152.7   |
         |                                                |           |           |           |
         | Industrial commodities less fuels and related  |           |           |           |
         |   products and power...........................|   139.1   |   139.4   |   139.3   |
         |                                                |           |           |           |
         |                                                |           |           |           |
         |             OTHER COMMODITY GROUPINGS          |           |           |           |
         |                                                |           |           |           |
01-1     | Fruits and melons, fresh and dry vegetables,   |           |           |           |
         |   and tree nuts................................|   109.0   |   111.8   |   121.4   |
01-2     | Grains.........................................|   106.3   |   107.1   |   107.4   |
01-3     | Slaughter livestock............................|    97.9   |    93.1   |    91.4   |
01-4     | Slaughter poultry..............................|   147.9   |   122.3   |   115.9   |
01-5     | Plant and animal fibers........................|   121.1   |   115.5   |   108.4   |
01-7     | Chicken eggs...................................|   107.7   |   148.5   |   136.2   |
01-8     | Hay, hayseeds, and oilseeds....................|   145.4   |   146.8   |   140.7   |
01-83    | Oilseeds.......................................|   133.9   |   134.8   |   128.3   |
01-9     | Other farm products............................|   140.3   |   154.3   |   167.9   |
02-1     | Cereal and bakery products.....................|   157.6   |   157.9   |   157.6   |
02-2     | Meats, poultry, and fish.......................|   120.8   |   116.9   |   114.7   |
02-22    | Processed poultry..............................|   119.4   |   115.8   |   114.0   |
02-5     | Sugar and confectionery........................|   138.1   |   135.0   |   133.7   |
02-6     | Beverages and beverage materials...............|   139.4   |   136.8   |   136.9   |
02-63    | Packaged beverage materials....................|   160.0   |   147.6   |   146.6   |
02-7     | Fats and oils..................................|   126.7   |   139.4   |   135.2   |
03-81    | Apparel........................................|   125.9   |   125.7   |   125.9   |
04-4     | Other leather and related products.............|   144.2   |   144.0   |   144.5   |
05-3     | Gas fuels 2/...................................|    83.0   |   111.7   |    94.2   |
05-4     | Electric power.................................|   136.0   |   128.2   |   128.5   |
05-7     | Refined petroleum products.....................|    67.8   |    66.3   |    62.1   |
06-3     | Drugs and pharmaceuticals......................|   219.3   |   220.6   |   220.8   |
06-5     | Agricultural chemicals and products............|   132.0   |   132.1   |   130.9   |
06-7     | Other chemicals and allied products............|   133.5   |   134.1   |   133.8   |
07-1     | Rubber and rubber products.....................|   115.6   |   115.3   |   115.3   |
07-11    | Rubber, except natural rubber..................|   117.5   |   117.8   |   117.6   |
07-13    | Miscellaneous rubber products..................|   138.1   |   138.2   |   138.2   |
07-2     | Plastic products...............................|   130.3   |   130.1   |   130.0   |
08-1     | Lumber.........................................|   196.8   |   189.0   |   189.1   |
09-1     | Pulp, paper, and products, excluding building  |           |           |           |
         |   paper and board..............................|   144.8   |   147.7   |   148.9   |
09-15    | Converted paper and paperboard products........|   146.4   |   149.6   |   151.6   |
10-1     | Iron and steel.................................|   126.8   |   127.6   |   127.1   |
10-2     | Nonferrous metals..............................|   137.4   |   132.7   |   130.4   |
10-25    | Nonferrous mill shapes.........................|   145.5   |   144.5   |   144.3   |
11-3     | Metalworking machinery and equipment...........|   145.7   |   145.9   |   145.9   |
11-4     | General purpose machinery and equipment........|   145.3   |   145.5   |   145.6   |
11-6     | Special industry machinery.....................|   157.1   |   157.4   |   157.5   |
11-7     | Electrical machinery and equipment.............|   122.1   |   122.1   |   121.8   |
11-9     | Miscellaneous machinery and equipment..........|   131.1   |   131.3   |   131.3   |
12-6     | Other household durable goods..................|   150.1   |   149.4   |   149.6   |
13-2     | Concrete ingredients...........................|   143.3   |   143.2   |   143.4   |
14-1     | Motor vehicles and equipment...................|   131.0   |   133.5   |   132.6   |
15-1     | Toys, sporting goods, small arms, etc..........|   131.8   |   131.8   |   131.7   |
15-4     | Photographic equipment and supplies............|   118.0   |   118.0   |   118.5   |
15-9     | Other miscellaneous products...................|   133.3   |   133.8   |   133.7   |
__________________________________________________________|___________|___________|___________|

1/  Data for August 1997 have been revised to reflect the availability of late reports and
    corrections by respondents.  All data are subject to revision four months after original
    publication.

2/  Prices of some items in this grouping are lagged 1 month.

Table 4.  Producer Price Indexes for the net output of major industry groups, not seasonally adjusted
____________________________________________________________________________________________________________________
                  |                                              |     |         Index         |  Percent change
  Industry        |                Industry 1/                   |Index|_______________________|to_Dec._1997_from:__
    code          |                                              |base |       |       |       |        |
                  |                                              |     |Aug.   |Nov.   |Dec.   |  Dec.  |  Nov.
                  |                                              |     |1997 2/|1997 2/|1997 2/|  1996  |  1997
__________________|______________________________________________|_____|_______|_______|_______|________|___________
                  |                                              |     |
                  |Total mining industries...................... |12/84|  80.2    91.9    82.8   -20.5    -9.9
       10         | Metal mining................................ |12/84|  86.4    78.8    74.1   -15.1    -6.0
       12         | Coal mining................................. |12/85|  91.6    91.0    92.2     1.7     1.3
       13         | Oil and gas extraction...................... |12/85|  79.7    96.2    84.1   -25.0   -12.6
       14         | Mining and quarrying of non-metallic         |     |
                  |  minerals, except fuels..................... |12/84| 129.2   129.9   129.7     2.0     -.2
                  |                                              |     |
                  |Total manufacturing industries............... |12/84| 127.4   127.5   127.0     -.8     -.4
       20         | Food and kindred products................... |12/84| 128.6   127.5   127.1     -.9     -.3
       21         | Tobacco manufactures........................ |12/84| 209.4   218.9   219.6     9.1      .3
       22         | Textile mill products....................... |12/84| 118.8   118.7   118.7      .1     0
       23         | Apparel and other finished products made     |     |
                  |  from fabrics and similar materials......... |12/84| 123.5   123.3   123.5      .3      .2
       24         | Lumber and wood products, except furniture.. |12/84| 159.6   158.3   158.4     1.6      .1
       25         | Furniture and fixtures...................... |12/84| 138.3   138.8   138.8     1.0     0
       26         | Paper and allied products................... |12/84| 132.8   135.9   137.2     1.9     1.0
       27         | Printing, publishing, and allied industries. |12/84| 168.9   170.6   171.2     2.6      .4
       28         | Chemicals and allied products............... |12/84| 147.2   147.3   147.1      .5     -.1
       29         | Petroleum refining and related products..... |12/84|  85.3    83.7    79.1   -14.5    -5.5
       30         | Rubber and miscellaneous plastic products... |12/84| 123.1   122.8   122.7     -.5     -.1
       31         | Leather and leather products................ |12/84| 136.9   137.8   137.6     1.2     -.1
       32         | Stone, clay, glass, and concrete products... |12/84| 127.5   127.9   127.8     1.0     -.1
       33         | Primary metal industries.................... |12/84| 125.2   124.5   123.8      .7     -.6
       34         | Fabricated metal products, except machinery  |     |
                  |  and transportation equipment............... |12/84| 127.9   128.1   128.1     1.2     0
       35         | Machinery, except electrical................ |12/84| 118.3   118.1   118.1     -.5     0
       36         | Electrical and electronic machinery,         |     |
                  |  equipment, and supplies.................... |12/84| 111.1   111.1   110.8    -1.7     -.3
       37         | Transportation equipment.................... |12/84| 132.8   134.7   134.1     -.7     -.4
       38         | Measuring and controlling instruments;       |     |
                  |  photographic, medical, optical goods;       |     |
                  |  watches, clocks............................ |12/84| 125.8   125.9   125.9      .6     0
       39         | Miscellaneous manufacturing industries...... |12/85| 129.1   129.3   129.3      .8     0
                  |                                              |     |
                  |Services industries                           |     |
       40         | Railroad transportation..................... |12/96| 100.7   100.9   100.9      .9     0
       42         | Motor freight transportation and warehousing |06/93| 109.3   109.0   109.1     1.8      .1
       43         | United states postal service................ |06/89| 132.3   132.3   132.3     0       0
       44         | Water transportation........................ |12/92| 104.7   103.2   103.8     -.4      .6
       45         | Transportation by air....................... |12/92| 125.4   124.0   124.2     1.2      .2
       46         | Pipe lines, except natural gas.............. |12/86|  98.7    98.7    98.7    -2.2     0
       80         | Health services............................. |12/94| 106.2   106.2   106.4     1.0      .2
       81         | Legal services.............................. |12/96| 102.5   102.9   103.2     3.2      .3
____________________________________________________________________________________________________________________
1/ Indexes in this table are derived from the net-output-weighted industry price indexes.  Because of differences
   in coverage and aggregation methodology, they will generally not match the movements of similarly-titled indexes
   which are derived from traditional commodity groupings.
2/ The indexes for August 1997 have been recalculated to incorporate late reports and corrections by respondents.
   All indexes are subject to revision four months after original publication.
3/ Not available.
 Table 5.  Producer Price Indexes by stage of processing, seasonally adjusted
 (1982=100)
________________________________________________________________________________________________________________
                                                       |      
                                                       |                      Index 1/   
                                                       |________________________________________________________
               Grouping                                |         |        |        |        |        |        
                                                       |   Jul.  |  Aug.  |  Sep.  |  Oct.  |  Nov.  |  Dec.    
                                                       |   1997  |  1997  |  1997  |  1997  |  1997  |  1997  
_______________________________________________________|_________|________|________|________|________|__________
      Finished goods...................................|   131.0    131.4    132.0    132.1    131.9    131.7
        Finished consumer goods........................|   129.2    129.7    130.4    130.6    130.3    130.2
          Finished consumer foods......................|   133.8    134.1    134.2    134.7    134.6    134.5
            Crude......................................|   115.0    115.5    120.1    131.2    129.6    134.2
            Processed..................................|   135.2    135.5    135.3    134.9    134.9    134.5
          Finished consumer goods, excluding foods.....|   127.0    127.7    128.6    128.7    128.3    128.2
            Nondurable goods less foods................|   123.1    123.9    124.8    124.8    124.5    124.4
            Durable goods..............................|   132.7    133.0    133.9    134.1    133.7    133.4
        Capital equipment..............................|   138.0    138.0    138.4    138.3    138.2    137.9
          Manufacturing industries.....................|   137.5    137.7    137.8    137.8    137.8    137.6
          Nonmanufacturing industries..................|   138.1    138.1    138.6    138.4    138.2    137.9
                                                       |   
      Intermediate materials, supplies, and components.|   125.2    125.4    125.6    125.5    125.7    125.4
        Materials and components for manufacturing.....|   128.2    128.3    128.4    128.3    128.4    128.0
          Materials for food manufacturing.............|   122.0    122.0    122.7    122.1    124.5    123.3
          Materials for nondurable manufacturing.......|   129.4    129.9    130.3    130.3    130.5    130.2
          Materials for durable manufacturing..........|   133.3    133.2    133.1    132.6    132.3    131.4
          Components for manufacturing.................|   126.4    126.2    126.1    126.1    126.1    126.0
        Materials and components for construction......|   147.2    147.2    146.8    146.5    146.8    146.7
        Processed fuels and lubricants.................|    86.8     87.8     88.2     88.6     89.0     88.1
          Manufacturing industries ....................|    89.1     90.1     91.1     91.3     92.6     91.4
          Nonmanufacturing industries..................|    85.4     86.3     86.3     86.8     86.7     85.9
        Containers.....................................|   134.1    133.3    135.4    136.7    137.2    139.4
        Supplies.......................................|   135.9    135.9    136.2    135.9    136.1    136.0
          Manufacturing industries.....................|   139.4    139.5    139.6    140.2    140.3    140.3
          Nonmanufacturing industries..................|   134.1    134.0    134.4    133.6    133.9    133.8
            Feeds......................................|   128.9    127.8    131.9    122.2    123.4    122.4
            Other supplies.............................|   134.8    134.9    134.8    135.2    135.4    135.4
                                                       |      
      Crude materials for further processing...........|   106.6    107.2    108.0    112.3    114.1    107.7
        Foodstuffs and feedstuffs......................|   110.9    110.7    110.6    110.6    110.3    109.5
        Nonfood materials..............................|    99.9    100.9    102.4    109.2    112.4    102.6
          Nonfood materials except fuel 2/.............|   101.3    102.3    101.1    103.4    102.2     98.6
            Manufacturing 2/...........................|    92.7     93.7     92.5     95.0     93.7     90.1
            Construction...............................|   202.3    202.0    201.8    200.2    200.2    200.1
          Crude fuel 3/................................|    88.0     88.9     95.1    108.9    119.2     99.9
            Manufacturing industries...................|    86.5     87.3     92.8    105.1    114.3     97.0
            Nonmanufacturing industries................|    89.5     90.5     96.9    111.3    122.1    101.9
                                                       |  
                     Special groupings                 |   
                                                       |   
      Finished goods, excluding foods..................|   130.0    130.5    131.3    131.3    131.0    130.8
      Intermediate materials less foods and feeds......|   125.2    125.5    125.6    125.7    125.8    125.6
      Intermediate foods and feeds.....................|   124.5    124.2    125.9    122.4    124.4    123.3
      Crude materials less agricultural products 2/....|    99.5    100.4    101.9    108.8    112.1    102.1
                                                       |      
      Finished energy goods............................|    81.4     82.6     83.6     83.7     83.0     82.8
      Finished goods less energy.......................|   139.7    139.9    140.4    140.5    140.4    140.3
      Finished consumer goods less energy..............|   140.4    140.6    141.1    141.3    141.2    141.2
                                                       |   
      Finished goods less foods and energy.............|   142.0    142.2    142.8    142.8    142.7    142.5
      Finished consumer goods less foods and energy....|   144.6    144.8    145.5    145.6    145.5    145.4
      Consumer nondurable goods less foods and energy..|   153.2    153.4    154.0    153.9    154.1    154.3
                                                       |   
      Intermediate energy goods........................|    86.5     87.5     87.9     88.3     88.7     87.8
      Intermediate materials less energy...............|   133.7    133.7    133.8    133.7    133.9    133.7
      Intermediate materials less foods and energy.....|   134.3    134.3    134.3    134.4    134.5    134.4
                                                       |  
      Crude energy materials 2/........................|    79.1     79.7     82.1     90.9     95.4     83.4
      Crude materials less energy......................|   122.2    122.7    122.3    122.4    121.9    120.6
      Crude nonfood materials less energy 3/...........|   155.4    157.5    156.3    156.8    155.7    153.3
______________________________________________________________________________________________________________

  1/  All seasonally adjusted indexes are subject to change up to five years after original publication 
      due to the recalculation of seasonal factors each January.  The indexes for August 1997 been
      recalculated to incorporate late reports and corrections by respondents.  
  2/  Includes crude petroleum.
  3/  Excludes crude petroleum.

Technical Notes





Brief Explanation of
Producer Price Indexes

     Producer price indexes (PPI) measure average changes in
prices received by domestic producers of commodities in all
stages of processing. Most of the information used in
calculating the indexes is obtained through the systematic
sampling of nearly every industry in the manufacturing and
mining sectors of the economy. The PPI program also includes
some information from other sectors--agriculture, fishing,
forestry, services, and gas and electricity. Because
producer price indexes are designed to measure only the
change in prices received for the output of domestic
industries, imports are not included. The sample currently
contains about 3,200 commodities and 80,000 quotations per
month.
     There are three primary systems of indexes within the
PPI program: (1) Stage of processing indexes; (2) commodity
indexes; and (3) indexes for the net output of industries
and their products. The stage-of-processing structure
(tables 1 and 2) organizes products by class of buyer and
degree of processing. The commodity structure (tables 2 and
3) organizes products by similarity of end-use or material
composition. The entire output of various industries is
sampled to derive price indexes for the net output of
industries and their products (table 4).
     Within the stage-of-processing system, finished goods
are commodities that will not undergo further processing and
are ready for sale to the final demand user, either an
individual consumer or business firm. Consumer foods include
unprocessed foods such as eggs and fresh vegetables, as well
as processed foods such as bakery products and meats. Other
finished consumer goods include durable goods such as
automobiles, household furniture, and appliances, and
nondurable goods such as apparel and home heating oil.
Capital equipment includes producer durable goods such as
heavy motor trucks, tractors, and machine tools.
     The stage-of-processing category for intermediate
materials, supplies, and components consists partly of
commodities that have been processed but require further
processing. Examples of such semifinished goods include
flour, cotton yarn, steel mill products, and lumber. The
intermediate goods category also encompasses nondurable,
physically complete items purchased by business firms as
inputs for their operations. Examples include diesel fuel,
belts and belting, paper boxes, and fertilizers.
     Crude materials for further processing are products
entering the market for the first time that have not been
manufactured or fabricated and that are not sold directly to
consumers. Crude foodstuffs and feedstuffs include items
such as grains and livestock. Examples of crude nonfood
materials include raw cotton, crude petroleum, coal, hides
and skins, and iron and steel scrap.
     Producer price indexes for the net output of industries
and their products are grouped according to the Standard
Industrial Classification (SIC) and the Census product code
extension of the SIC. Industry price indexes are compatible
with other economic time series organized by SIC codes, such
as data on employment, wages, and productivity. Table 4
lists indexes for the net output of major mining and
manufacturing industry groups at the 2-digit level.
     Producer price indexes are based on selling prices
reported by establishments of all sizes selected by
probability sampling, with the probability of selection
proportionate to size. Individual items and transaction
terms from these firms are also chosen by probability
proportionate to size. BLS strongly encourages cooperating
companies to supply actual transaction prices at the time of
shipment to minimize the use of list prices. Prices are
normally reported by mail questionnaire for the Tuesday of
the week containing the 13th.
     Price data are provided on a voluntary and confidential
basis; no one but sworn BLS employees are allowed access to
individual company price reports. All producer price indexes
are routinely subject to revision once, 4 months after
original publication, to reflect the availability of late
reports and corrections by respondents.
     Net output values of shipments are used as weights for
industry indexes. Net output values refer to the value of
shipments from establishments in one industry to
establishments classified in another industry. However,
weights for commodity price indexes are based on gross
shipment values, including shipment values between
establishments within the same industry. As a result, broad
commodity grouping indexes such as the all commodities index
are affected by the multiple counting of price change at
successive stages of processing, which can lead to
exaggerated or misleading signals about inflation. Stage-of-
processing indexes partially correct this defect, but
industry indexes consistently correct for this at all levels
of aggregation. Therefore, industry and stage-of-processing
indexes are more appropriate than broad commodity groupings
for economic analysis of general price trends.
     Weights for most traditional commodity groupings of the
PPI, as well as all indexes (such as stage-of-processing
indexes) calculated from traditional commodity groupings,
currently reflect 1987 values of shipments as reported in
the Census of Manufactures and other sources. From January
1987 through December 1991, PPI weights were derived from
1982 shipment values. Industry indexes shown in table 4 are
also now calculated with 1987 net output weights.
     Effective with publication of January 1988 data, many
important PPI series (including stage-of-processing
groupings and most commodity groups and individual items)
were placed on a new reference base, 1982=100, to coincide
with the reference year of the shipment weights. From 1971
through 1987, the standard reference base for most PPI
series was 1967=100. Except for rounding differences, the
shift to the new reference base did not alter any changes to
previously published percent changes for affected PPI
series. (See "Calculating Index Changes," below.) The new
reference base is not used for indexes with a base later
than December 1981, nor for indexes for the net output of
industries and their products.
     For further information on the underlying concepts and
methodology of the Producer Price Index, see chapter 16,
"Producer Prices," in BLS Handbook of Methods (September
1992), Bulletin 2414. Reprints are available from the Bureau
of Labor Statistics on request.

Calculating Index Changes

     Movements of price indexes from one month to another
are usually expressed as percent changes rather than as
changes in index points because index point chances are
affected by the level of the index in relation to its base
period, while percent changes are not. The box shows the
computation of index point and percent changes.
     Percent changes for 3-month and 6-month periods can be
expressed as annual rates that are computed according to the
standard formula for compound growth rates. These data
indicate what the percent change would be if the rate for a
given 3- or 6-month span were maintained for a 12-month
period.





                Index Point Change

     Finished Goods Price Index    107.5
     Less previous index           104.0
     Equals index point change       3.5

          Index Percent Change

     Index point change              3.5
     Divided by the previous index 104.0
     Equals                          0.034
     Result multiplied by 100        0.034 x 100
     Equals percent change           3.4

     Each index measures price changes from a reference
period which equals 100.0 (1982 or some later month). An
increase of 5.5 percent from the reference period in the
Finished Goods Price Index, for example, is shown as 105.5.
This change can also be expressed in dollars as follows:
"Prices received by domestic producers of a systematic
sample of finished goods have risen from $100 in 1982 to
$105.50 to-day." Likewise, a current index of 90.0 would
indicate that prices received by producers of finished goods
today are 10 percent lower than they were in 1982.

Seasonally Adjusted
and Unadjusted Data

     Because price data are used for different purposes by
different groups, the Bureau of Labor Statistics publishes
seasonally adjusted as well as unadjusted changes each
month.
     Seasonally adjusted data are preferred for analyzing
general price trends in the economy because they eliminate
the effect of changes that normally occur at about the same
time and in about the same magnitude every year-such as
price movements resulting from normal weather patterns,
regular production and marketing cycles, model changeovers,
seasonal discounts, and holidays. For these reasons,
seasonally adjusted data more clearly reveal underlying
cyclical trends.
     Unadjusted data are of primary interest to users who
need information which can be related to actual dollar
values of transactions. Individuals requiring this
information include marketing specialists, purchasing
agents, budget and cost analysts, contract specialists, and
commodity traders. It is the unadjusted data that are
generally cited in escalating long-term contracts such as
purchasing agreements or real estate leases. (See Escalation
and Producer Price Indexes: A Guide for Contracting Parties,
BLS Report 807, September 1991, available on request from
BLS.)
     For more information, see "Appendix A: Seasonal
Adjustment Methodology at BLS," in the BLS Handbook of
Methods (September 1992), Bulletin 2414.