FOR DATA ONLY:  (202) 606-7828     USDL 99-40
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   FEBRUARY 18, 1999
                                     
                  Producer Price Indexes -- January 1999

     The Producer Price Index for Finished Goods advanced 0.5 percent in
January, seasonally adjusted, the Bureau of Labor Statistics of the U.S.
Department of Labor reported today.  This increase followed a 0.4-percent
advance in December and a 0.2-percent decline in November. Prices received
by producers of intermediate goods increased 0.1 percent, following a 0.5-
percent decline in the prior month.  The crude goods index rose 2.6
percent, after registering a 4.0-percent drop a month earlier.  (See table
A.)

Table A.  Monthly and annual percent changes in selected stage-of-
processing price
indexes, seasonally adjusted
                     Finish                                  
                         ed
                      goods
                                                             
                                     Change in            
                            Except   finished   Inter-    
                                       goods
                             foods    from 12   mediateCrude
                              and     months
Month  Total  Foods  Energy energy      ago      goods goods
                                     (unadj.)
1998                                                    
 Jan.    -0.6   -0.3   -3.7     0.0        -1.7   -0.7   -5.6
 Feb.     -.1     .3   -1.4      .1        -1.5    -.2   -1.9
 Mar.       0    -.2   -2.2      .5        -1.5    -.3   -1.4
 Apr.      .2     .4    -.4      .1         -.9      0    1.3
 May      -.1    -.5     .4      .1         -.8    -.1    -.6
 June     -.2    -.1    -.8     -.1         -.7    -.3   -2.7
 July      .2     .5    -.1      .2         -.2      0     .1
 Aug.     -.3    -.3   -1.9       0         -.8    -.3   -4.2
Sept.      .2     .2    -.4      .3         -.9    -.3   -1.8
 Oct.      .2     .4    1.1       0         -.7    -.2    2.4
 Nov.     -.2    -.4   -1.5      .1         -.7    -.2    -.7
 Dec.      .4      0   -2.3     1.0         -.1    -.5   -4.0
                                                        
1999                                                    
 Jan.      .5    1.6    1.8     -.1          .9     .1    2.6
NOTE: Some percent changes shown here and elsewhere in this release
may differ from those previously reported because seasonal adjustment
factors have been recalculated to reflect developments during 1998.
In addition, indexes for September 1998 have been recalculated to
incorporate late reports and corrections by respondents.  All indexes
are subject to revision 4 months after original publication.
                                     
                                    -2-
                                     
     Among finished goods, rising prices for finished consumer foods and
finished energy goods outweighed falling prices for finished consumer goods
other than foods and energy and capital equipment.  The index for finished
goods excluding foods and energy fell 0.1 percent in January, after posting
a 1.0-percent rise in December.
                                     
     Before seasonal adjustment, the Producer Price Index for Finished
Goods advanced 0.4 percent to stand at 131.5 (1982=100).  From January 1998
to January 1999, the finished goods price index increased 0.9 percent.
Over the same period, prices for finished consumer foods rose 1.9 percent,
the index for finished energy goods fell 7.5 percent, and prices for
finished goods other than foods and energy advanced 2.3 percent.  Prices
received by domestic producers of intermediate goods declined 2.4 percent
for the 12 months ended in January, and the index for crude goods fell 10.6
percent during the same period.

Finished goods

     The index for finished consumer foods advanced 1.6 percent in January,
after showing no change in December.  Prices for pork increased 18.3
percent, following a 4.5-percent decrease in the previous month.  The index
for citrus fruit advanced 64.0 percent, after moving up 13.6 percent in the
prior month.  Prices for dairy products rose more than a month ago.  The
indexes for beef and veal, finfish and shellfish, and eggs for fresh use
turned up, after decreasing a month earlier.  By contrast, the index for
fresh and dry vegetables declined 9.8 percent, following a 10.8-percent
advance in the prior month.  Prices for soft drinks and for shortening and
cooking oils fell, after rising last month.

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 from
                      ing      from                    ng
                     foods  12 months         Energy  foods  12 months
                      and      ago                     and      ago
Month  Foods  Energy energy  (unadj.)   Foods (unadj energy   (unadj.)
                                                .)
1998                                                           
 Jan.    -3.4   -3.0   -0.1       -1.7   -3.0  -11.2   -1.7        -19.5
 Feb.     -.3   -1.3    -.1       -1.8    -.7   -4.3    -.2        -13.8
 Mar.    -1.3   -2.0      0       -1.8    -.3   -2.9   -1.4         -7.6
 Apr.     -.9     .2      0       -1.6     .3    4.5   -1.2         -7.0
 May       .3     .2    -.1       -1.5   -1.5      0     .1         -9.0
 June     -.6   -1.1    -.1       -1.8     .4   -8.0    -.4         -8.9
 July      .4      0    -.1       -1.6   -3.4    6.0   -1.5         -8.4
 Aug.     -.4   -1.5    -.1       -2.1   -1.1   -9.0   -2.8        -12.3
Sept.     -.9    -.5    -.3       -2.5    -.9   -3.6   -1.2        -15.1
 Oct.     -.4     .8    -.2       -2.5    2.9    5.1   -2.7        -16.7
 Nov.      .5   -1.0    -.2       -2.9    -.3      0   -2.7        -19.0
 Dec.     -.6   -3.2    -.2       -3.1   -4.1   -5.2   -1.6        -17.6
                                                                           
1999                                                                       
 Jan.     1.1    1.8    -.2       -2.4    5.1     .6     .2        -10.6
NOTE: Some percent changes shown here and elsewhere in this release may
differ from those previously reported because seasonal adjustment factors
have been recalculated to reflect developments during 1998.  In addition,
indexes for September 1998 have been recalculated to incorporate late
reports and corrections by respondents.  All indexes are subject to 
revision 4 months after original publication.
                                    -3-
                                     
     The index for finished energy goods advanced 1.8 percent in January,
after posting a 2.3-percent decline in December.  Prices for gasoline
increased 6.5 percent, following an 8.5-percent decrease a month earlier.
The indexes for residential electric power, home heating oil, and finished
lubricants also rose, after falling a month ago.  Prices for residential
natural gas increased more than in the prior month.

     The index for finished consumer goods other than foods and energy
declined 0.1 percent in January, after registering a 1.8-percent advance in
December.  Price decreases for passenger cars, floor coverings, tires,
periodical circulation, and men's and boys' apparel slightly outweighed
price increases for prescription drugs, book publishing, sanitary papers
and health products, and newspaper circulation.

     Prices for capital equipment declined 0.1 percent in January, after
showing no change in December.  Falling prices for electronic computers,
construction machinery and equipment, office and store machines and
equipment, truck trailers, and oil and gas field machinery and equipment
outweighed rising prices for civilian aircraft, light motor trucks,
communication and related equipment, and commercial furniture.

Intermediate goods

     The Producer Price Index for Intermediate Materials, Supplies, and
Components edged up 0.1 percent in January, seasonally adjusted, after
registering a 0.5-percent decline in December.  Price indexes for both
intermediate energy goods and intermediate foods and feeds turned up,
following decreases a month ago.  Prices for nondurable manufacturing
materials fell less than in December.  On the other hand, the index for
durable manufacturing materials fell slightly more than in the previous
month.  Prices for construction materials edged up 0.1 percent for the
second consecutive month.  Excluding foods and energy, the index for
intermediate materials fell 0.2 percent in January, the same as in the
previous month.  (See table B.)
     
     The index for intermediate energy goods rose 1.8 percent in January,
after posting a 3.2-percent decline in December.  In January, gasoline
prices turned up 6.5 percent, after falling 8.5 percent in the previous
month.  The index for jet fuels similarly increased 7.5 percent, following
a 19.9-percent decrease a month earlier.  Prices for diesel fuel, electric
power, and utility natural gas also rose, after declining in the previous
month.  Price declines slowed for both liquefied petroleum gas and residual
gas.

     Prices for intermediate foods and feeds rose 1.1 percent, after
posting a 0.6-percent decline in December.  The index for pork turned up
18.3 percent, following a 4.5-percent decrease in the previous month.
Prices for crude vegetable oils and for beef and veal also increased, after
falling a month ago.  The indexes for fluid milk products and confectionery
materials rose more than in the prior month.  By contrast, prices for
refined sugar turned down 1.0 percent, after a 0.1-percent rise in
December.  The indexes for natural, processed, and imitation cheese and for
condensed and evaporated milk products rose less than in the previous
month.

     The index for nondurable manufacturing materials moved down 0.1
percent in January, after posting a 0.4-percent decline in December.  Price
declines for industrial chemicals, synthetic fibers, gray fabrics, plastic
resins and materials, and paper slightly outweighed price increases for
medicinal and botanical chemicals, woodpulp, and paperboard.

     The index for durable manufacturing materials decreased 0.6 percent in
January, after registering a 0.5-percent decrease in December.  In January,
price declines for steel mill products, flat glass, aluminum mill shapes,
copper, and hardwood lumber more than offset price advances for silver,
cement, plywood, and platinum.
                                    -4-
                                     
     In January, prices for materials and components for construction
increased 0.1 percent, the same as in December.  Price increases for
softwood lumber, gypsum products, wiring devices, cement, plastic
construction products, metal valves, and plumbing fixtures slightly
outweighed price declines for fabricated structural metal products,
nonferrous wire and cable, steel wire, and air conditioning and
refrigeration equipment.

Crude Goods

     The Producer Price Index for Crude Materials for Further Processing
turned up 2.6 percent in January, seasonally adjusted, following a 4.0-
percent drop in December.  Prices for crude foodstuffs and feedstuffs,
crude energy materials, and basic industrial materials also rose, after
falling in the prior month.  (See table B.)
     
     Prices for crude foodstuffs and feedstuffs advanced 5.1 percent,
following a 4.1-percent decline in December.  The index for slaughter hogs
gained 188.6 percent, after a 46.5-percent decrease in the previous month.
Prices for slaughter cattle, unprocessed finfish, and wheat also increased,
after falling a month ago.  The index for fresh fruits and melons rose more
than in the prior month.  By contrast, prices for fluid milk turned down
0.8 percent, following a 2.8-percent gain in December.  The indexes for
fresh and dry vegetables and corn also fell after rising last month.
Prices for slaughter broilers and fryers and for slaughter turkeys fell
more than in December.
     
     The index for crude energy rose 0.6 percent, following a 5.2-percent
decline in the previous month.  Prices for crude petroleum rose 16.5
percent, after a 20.2-percent drop a month ago.  The index for coal also
turned up, following a decline in the prior month.  On the other hand,
prices for natural gas turned down 7.0 percent, after a 0.5-percent rise in
December.
     
     Prices for crude nonfood materials less energy increased 0.2 percent,
after dropping 1.6 percent last month.  Iron and steel scrap prices
advanced 6.2 percent, following a 0.7-percent gain in the previous month.
The indexes for wastepaper and copper ores rose, after falling in the prior
month.  Prices for raw cotton, copper base scrap, pulpwood, and aluminum
base scrap fell less than a month ago.  By contrast, the index for cattle
hides increased 0.3 percent, following a 9.7-percent gain in December.
Prices for gold ores; construction sand, gravel, and crushed stone; and
softwood logs, bolts, and timber turned down, after rising in the previous
month.
     
Net output price indexes for mining, manufacturing, and other industries

Mining.  The Producer Price Index for the Net Output of Total Mining
Industries fell 0.5 percent in January, following a 3.8-percent decline in
December.  (Net output price indexes are not seasonally adjusted.)  In
January, prices for the oil and gas extraction industry group moved down
1.0 percent, after showing a 5.0-percent decrease in the prior month.  The
index for the coal mining industry group turned up 1.4 percent, following a
1.0-percent decrease in December.  The metal mining industry group index
declined 1.3 percent, after falling 3.2 percent in the month before.  The
index for the non-metallic mineral mining industry group turned up 0.2
percent, following a 0.2-percent decrease in the previous month.  In
January, the Producer Price Index for the Net Output of Total Mining
Industries stood at 65.0 (December 1984=100), 14.9 percent below its year-
ago level.
                                    -5-
                                     
Manufacturing.  The Producer Price Index for the Net Output of Total
Manufacturing Industries increased 0.4 percent in January, after decreasing
0.3 percent in December.  The index for the petroleum refining and related
products industry group rose 5.4 percent, following a 11.3-percent decline
in December.  Prices for the food and kindred products industry group;
printing and publishing industry group; and the chemical and allied
products industry group also advanced, following declines last month.  The
index for the transportation industry group fell less than a month ago.  By
contrast, the index for tobacco manufactures rose 0.1 percent, following a
27.4-percent jump in the prior month.  In January , the Producer Price
Index for the Net Output of Total Manufacturing Industries stood at 126.3
(December 1984=100), 0.1 percent below its year-ago level.

Other.  Among other industries in January, prices for operators and lessors
of nonresidential buildings rose 1.1 percent, after falling 2.1 percent in
the previous month.  Indexes for passenger car rental, without drivers;
travel agencies; and hotels and motels also turned up, after declining a
month earlier.  Prices for offices and clinics of doctors of medicine and
scheduled air transportation rose more than in December.  The indexes for
property and casualty insurance, the United States Postal Service, and
general medical and surgical hospitals advanced, after showing no change a
month ago.  Prices for telephone communications, except radiotelephone,
fell less than last month.
     
	By contrast, the index for radio broadcasting decreased 2.3 percent in
January, after rising 0.3 percent in December.  Prices for airports, flying
fields, and airport services; freight transportation arrangement; and deep
sea domestic transportation of freight turned down, following an increase
in the previous month.  The indexes for home health care services and crude
petroleum pipelines declined, after showing no change in the prior month.

                                   *****
            Producer Price Index data for February 1999 will be
         released on Friday, March 12, 1999 at 8:30 a.m. (E.S.T.)
                                   *****
Information in this news release will be made available to sensory impaired
individuals upon request.  Voice phone: 202-606-7828; TDD phone: 202-606-
5897; TDD Message Referral phone: 1-800-326-2577.
                                    -6-
                                     
                         Resampling of Industries
     Effective with this release, another set of new and resampled
industries is introduced.  One (1) mining, thirty-three (33) manufacturing,
and seven (7) service industries were resampled this month.  In addition, a
service industry, life insurance carriers, was introduced into the PPI
sample for the first time.  Indexes for these industries appear in table 5
of the PPI Detailed Report.

     Under the resampling procedure, the sample for an industry is updated
to more accurately reflect changes in the structure, membership,
technology, or product mix of an industry.  The Bureau of Labor Statistics
published the first results of this systematic process in July 1986.
Subsequent efforts have been completed at 6-month intervals.

Standard
Industrial
Classification
(SIC) Code               Industry

1474          Potash, soda, and borate minerals
2024          Ice cream and frozen desserts
2034          Dried and dehydrated fruits, vegetables and soup mixes
2038          Frozen specialties, not elsewhere classified
2047          Dog and cat food
2052          Cookies and crackers
2074          Cottonseed oil mill products
2076          Vegetable oil mills, not elsewhere classified
2084          Wines, brandy, and brandy spirits
2273          Carpet and rugs
2331          Women's, misses', and juniors' blouses and shirts
2335          Women's, misses', and juniors' dresses
2337          Women's, misses', and juniors' suits and coats
2339          Women's, misses', and juniors' outerwear, not elsewhere classified
2491          Wood preserving
2821          Plastic materials and resins
3161          Luggage
3171          Women's and children's handbags and purses
3172          Personal leather goods, except women's handbags and purses
3357          Nonferrous wiredrawing and insulating
3399          Primary metal products, not elsewhere classified
3491          Industrial valves
3492          Fluid power valves and hose fittings
3494          Valves and pipe fittings, not elsewhere classified
3563          Air and gas compressors
3751          Motorcycles, bicycles, and parts
3821          Laboratory apparatus and furniture
3827          Optical instruments and lenses
3829          Measuring and controlling devices, not elsewhere classified
3911          Jewelry, precious metal
3915          Jewelers' materials and lapidary work
3949          Sporting and athletic goods, not elsewhere classified
3961          Costume jewelry and costume novelties
3999          Manufacturing industries, not elsewhere classified
                                   -7-
                                     
4222          Refrigerated warehousing and storage
4432          Freight transportation on the Great Lakes/St. Lawrence Seaway
4491          Marine cargo handling
4513          Air courier services
6311          Life insurance carriers*
7513          Truck rental and leasing
7514          Passenger car rental
8071          Medical laboratories

     For information on specific additions, deletions, and recodes of
indexes that are effective this month, see tables 12 through 18 in the
January 1999 issue of the Producer Price Index Detailed Report.

*See "New Producer Price Index for the Life Insurance Industry - SIC 6311"
in the January issue of the Producer Price Index Detailed Report.
                                     
               Recalculation of Seasonal Adjustment Factors
                                     
     Effective with this release, seasonal adjustment factors have been
recalculated to reflect 1998 price movement patterns for stage-of-
processing (SOP) and commodity groupings.  This routine annual
recalculation may affect seasonally adjusted indexes and percent changes
from January 1994 to the present.  Revised seasonally adjusted data for
this period, as well as seasonal factors for commodity indexes to be used
through December 1999, are available on request from BLS.  The table below
shows 1998 monthly seasonally adjusted percent changes for the three major
SOP categories calculated with the old seasonal factors, compared with the
percent changes for recalculated indexes.  The latter incorporate new
seasonal factors that reflect 1998 price movement patterns.
     
Over-the-month percent changes in major stage-of-processing indexes,
seasonally adjusted, using former and recalculated seasonal factors for
1998

            Finished Goods         Intermediate Goods          Crude Goods
Month    Former  Recalculated     Former  Recalculated     Former  Recalculated
January   -0.6      -0.6           -0.6       -0.7           -5.8      -5.6
February   -.1       -.1            -.3        -.2           -1.9      -1.9
March      -.1         0            -.4        -.3           -1.2      -1.4
April       .2        .2             .1          0            1.3       1.3
May         .1       -.1            -.1        -.1            -.4       -.6
June       -.2       -.2            -.3        -.3           -2.6      -2.7
July        .2        .2              0          0             .1        .1
August     -.3       -.3            -.3        -.3           -4.0      -4.2
September   .2        .2            -.2        -.3           -1.3      -1.8
October     .2        .2            -.2        -.2            1.7       2.4
November   -.2       -.2            -.2        -.2           -1.4       -.7
December    .4        .4            -.6        -.5           -3.8      -4.0






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|                       |Jan. 1999 from:|
                                                 |          |_______________________|_______________|__________________________
                                                 |   Dec.   |       |       |       |       |       |       |         |
                                                 |           Sept.  |Dec.   |Jan.   |  Jan. | Dec.  |Oct. to|Nov.  to |Dec.  to
                                                 |   1998 1/|1998 2/|1998 2/|1999 2/|  1998 | 1998  |  Nov. |   Dec.  |  Jan.
_________________________________________________|__________|_______|_______|_______|_______|_______|_______|_________|________
                                                 |
Finished goods...................................|  100.000   130.6   131.0   131.5     0.9    0.4     -0.2      0.4     0.5
  Finished consumer goods........................|   74.764   129.1   129.3   130.0     1.3     .5      -.3       .5      .8
    Finished consumer foods......................|   23.289   135.4   134.3   135.6     1.9    1.0      -.4      0       1.6
      Crude......................................|    1.693   127.1   128.5   133.4     5.0    3.8     -5.5      2.3     7.5
      Processed..................................|   21.596   136.0   134.8   135.7     1.6     .7      -.1      -.1     1.2
    Finished consumer goods, excluding foods.....|   51.475   126.3   126.9   127.5     1.1     .5      -.2       .8      .4
      Nondurable goods less foods................|   35.162   122.8   122.4   123.4     1.6     .8      -.5      1.2      .6
      Durable goods..............................|   16.313   131.0   133.8   133.4     0      -.3      0        0       -.3
  Capital equipment..............................|   25.236   136.7   137.8   137.7     -.1    -.1       .1      0       -.1
    Manufacturing industries.....................|    6.615   137.8   138.1   138.2      .2     .1       .1      0       0
    Nonmanufacturing industries..................|   18.621   136.2   137.6   137.5     -.3    -.1       .1      0       -.2
                                                 |
Intermediate materials, supplies, and components.|  100.000   122.9   121.1   121.2    -2.4     .1      -.2      -.5      .1
  Materials and components for manufacturing.....|   47.742   125.5   124.3   124.2    -2.6    -.1      -.3      -.3     -.1
    Materials for food manufacturing.............|    3.626   125.1   123.9   124.6     3.9     .6       .1      -.9     1.3
    Materials for nondurable manufacturing.......|   15.762   125.0   123.7   123.5    -4.9    -.2      -.6      -.4     -.1
    Materials for durable manufacturing..........|   10.444   127.2   124.7   124.1    -4.9    -.5      -.6      -.5     -.6
    Components for manufacturing.................|   17.910   125.8   125.8   125.7     -.2    -.1      -.1       .1     -.1
  Materials and components for construction......|   13.989   147.3   146.6   146.8      .3     .1      0         .1      .1
  Processed fuels and lubricants.................|   11.868    82.3    76.0    76.9    -7.7    1.2     -1.0     -3.0     1.6
    Manufacturing industries ....................|    4.597    87.2    82.2    82.7    -5.1     .6       .1     -2.0      .8
    Nonmanufacturing industries..................|    7.271    79.3    72.3    73.5    -9.1    1.7     -1.7     -3.8     2.0
  Containers.....................................|    3.880   140.6   138.8   138.7    -1.9    -.1      -.4      -.6     -.1
  Supplies.......................................|   22.521   134.3   134.3   134.2    -1.0    -.1       .1      0       -.1
    Manufacturing industries.....................|    5.122   140.6   140.6   140.3     -.1    -.2      0        0       -.3
    Nonmanufacturing industries..................|   17.399   131.6   131.5   131.5    -1.3    0         .2       .1     -.2
      Feeds......................................|    1.231    92.9    92.5    93.0   -19.5     .5      2.0       .1      .5
      Other supplies.............................|   16.168   136.2   136.2   136.2      .5    0        0        0       -.1
                                                 |
Crude materials for further processing...........|  100.000    92.1    88.8    90.9   -10.6    2.4      -.7     -4.0     2.6
  Foodstuffs and feedstuffs......................|   45.600   101.3    97.2   101.6    -3.7    4.5      -.3     -4.1     5.1
  Nonfood materials..............................|   54.400    82.5    79.8    80.3   -15.8     .6     -1.1     -3.8      .5
    Nonfood materials except fuel 3/.............|   29.494    82.9    72.4    75.4   -18.9    4.1     -4.0     -6.6     3.9
      Manufacturing 3/...........................|   27.957    75.3    65.3    68.1   -19.6    4.3     -4.2     -7.0     4.1
      Construction...............................|    1.537   191.7   190.0   191.2    -4.9     .6      -.6       .6     -.9
    Crude fuel 4/................................|   24.906    75.3    83.7    80.6   -11.5   -3.7      2.8      -.2    -3.7
      Manufacturing industries...................|    2.071    74.3    81.9    77.5   -13.7   -5.4      1.8       .6    -5.4
      Nonmanufacturing industries................|   22.835    76.7    85.3    82.4   -11.2   -3.4      3.1      -.5    -3.4
                                                 |
               Special groupings                 |
                                                 |
Finished goods, excluding foods..................|5/ 76.711   129.1   129.9   130.2      .6     .2      -.2       .5      .2
Intermediate materials less foods and feeds......|6/ 95.143   123.4   121.5   121.5    -2.4    0        -.3      -.5      .1
Intermediate foods and feeds.....................|6/  4.857   115.2   114.2   114.9    -3.2     .6       .5      -.6     1.1
Crude materials less agricultural products 3/ 7/.|8/ 51.467    81.2    78.8    79.3   -16.4     .6     -1.1     -3.8      .5
                                                 |
Finished energy goods............................|5/ 11.936    75.4    70.5    71.7    -7.5    1.7     -1.5     -2.3     1.8
Finished goods less energy.......................|5/ 88.064   141.0   142.8   143.1     2.2     .2      -.1       .8      .4
Finished consumer goods less energy..............|5/ 62.828   142.7   144.8   145.3     3.2     .3      -.1      1.1      .6
                                                 |
Finished goods less foods and energy.............|5/ 64.775   143.1   146.0   146.0     2.3    0         .1      1.0     -.1
Finished consumer goods less foods and energy....|5/ 39.539   147.4   151.5   151.6     4.0     .1       .1      1.8     -.1
Consumer nondurable goods less foods and energy..|5/ 23.226   160.0   165.2   165.7     7.0     .3       .2      3.1      .2
                                                 |
Intermediate energy goods........................|6/ 11.960    82.0    75.7    76.8    -7.5    1.5     -1.0     -3.2     1.8
Intermediate materials less energy...............|6/ 88.040   132.0   131.2   131.0    -1.7    -.2      -.2      -.2     -.2
Intermediate materials less foods and energy.....|6/ 83.183   133.1   132.3   132.1    -1.6    -.2      -.2      -.2     -.2
                                                 |
Crude energy materials 3/........................|8/ 32.487    62.2    62.0    62.4   -16.7     .6      0       -5.2      .6
Crude materials less energy......................|8/ 67.514   110.6   105.0   108.3    -7.4    3.1     -1.0     -3.4     3.5
Crude nonfood materials less energy 4/...........|8/ 21.913   137.9   128.1   128.7   -14.5     .5     -2.7     -1.6      .2
                                                 |
_______________________________________________________________________________________________________________________________

  1/  Comprehensive relative importance figures are initially computed          3/  Includes crude petroleum.
      after the publication of December indexes and are recalculated            4/  Excludes crude petroleum.
      after final December indexes are available.  The first-published          5/  Percent of total finished goods.
      and final December relative importances initially appear,                 6/  Percent of total intermediate materials.
      respectively, in the release tables containing January and May data.      7/  Formerly titled "Crude materials for
  2/  The indexes for September 1998 have been recalculated to incorporate          further processing, excluding crude
      late reports and corrections by respondents.  All indexes                     foodstuffs and feedstuffs, plant and
      are subject to revision 4 months after original publication.                  animal fibers, oilseeds, and leaf tobacco."
                                                                                8/  Percent of total crude materials.
Table 2.  Producer price indexes and percent changes for selected commodity groupings by stage of processing
(1982=100 unless otherwise indicated)
____________________________________________________________________________________________________________________________________
           |                                                       |                       |Unadjusted     |
           |                                                       |                       | percent       |Seasonally adjusted
           |                                                       |   Unadjusted index    |change to      |percent change from:
 Commodity |                                                       |                       |Jan. 1999 from:|
   code    |                      Grouping                         |_______________________|_______________|________________________
           |                                                       |       |       |       |       |       |       |       |
           |                                                       |Sept.  |Dec.   |Jan.   | Jan.  | Dec.  |Oct. to|Nov. to|Dec. to
           |                                                       |1998 1/|1998 1/|1999 1/| 1998  | 1998  |  Nov. |  Dec. |  Jan.
___________|_______________________________________________________|_______|_______|_______|_______|_______|_______|_______|________
           |                                                       |
           |FINISHED GOODS.........................................| 130.6   131.0   131.5     0.9    0.4     -0.2     0.4     0.5
           | FINISHED CONSUMER GOODS...............................| 129.1   129.3   130.0     1.3     .5      -.3      .5      .8
           |  FINISHED CONSUMER FOODS..............................| 135.4   134.3   135.6     1.9    1.0      -.4     0       1.6
           |                                                       |
01-11      |   Fresh fruits and melons 2/..........................|  92.3    86.6   103.6    16.1   19.6     -6.9     1.4    19.6
01-13      |   Fresh and dry vegetables 2/.........................| 130.8   137.9   124.4   -13.1   -9.8    -16.1    10.8    -9.8
01-71-07   |   Eggs for fresh use (Dec. 1991=100)..................|  88.9   102.9    94.0    -4.4   -8.6     -4.7     -.3     2.7
02-11      |   Bakery products 2/..................................| 175.9   176.7   177.4     1.2     .4       .1      .2      .4
02-13      |   Milled rice 2/......................................| 124.5   128.1   129.6     2.9    1.2      -.2      .5     1.2
02-14-02   |   Pasta products (June 1985=100) 2/...................| 122.8   122.6   122.8      .6     .2      -.1     -.2      .2
02-21-01   |   Beef and veal.......................................|  97.2    98.5   101.4     1.9    2.9       .4     -.2     5.7
02-21-04   |   Pork................................................|  96.2    80.6    90.6    -8.0   12.4     -3.2    -4.5    18.3
02-22-03   |   Processed young chickens............................| 138.4   119.1   117.5     3.3   -1.3     -2.9    -1.7    -1.9
02-22-06   |   Processed turkeys...................................| 100.4    98.0    86.4    -7.2  -11.8      0      -1.4    -7.0
02-23      |   Finfish and shellfish...............................| 178.7   174.9   184.7    -1.4    5.6      -.9    -2.0      .8
02-3       |   Dairy products......................................| 145.7   148.5   149.0    14.5     .3       .1      .6     3.4
02-4       |   Processed fruits and vegetables 2/..................| 125.2   126.7   126.8     1.6     .1      1.1      .1      .1
02-55      |   Confectionery end products 2/.......................| 169.6   170.1   171.0     1.8     .5       .1      .1      .5
02-62      |   Soft drinks.........................................| 134.8   134.9   135.4      .7     .4       .1      .3     -.8
02-63-01   |   Roasted coffee 2/...................................| 136.9   138.7   136.9    -9.4   -1.3      1.4      .7    -1.3
02-78      |   Shortening and cooking oils 2/......................| 151.0   148.2   145.5     3.9   -1.8       .6     3.3    -1.8
           |                                                       |
           |  FINISHED CONSUMER GOODS EXCLUDING FOODS..............| 126.3   126.9   127.5     1.1     .5      -.2      .8      .4
           |                                                       |
02-61      |   Alcoholic beverages.................................| 134.7   136.4   136.8     1.3     .3      1.0     -.1      .1
03-81-01   |   Women's apparel 2/..................................| 122.7   122.1   122.3      .1     .2       .1     0        .2
03-81-02   |   Men's and boys' apparel.............................| 133.5   133.4   133.6      .4     .1      0        .1     -.1
03-81-03   |   Girls', children's, and infants' apparel 2/.........| 120.5   121.8   121.9     -.6     .1      0       -.1      .1
03-82      |   Textile housefurnishings 2/.........................| 123.2   123.2   123.1     0      -.1      0       0       -.1
04-3       |   Footwear............................................| 144.7   145.2   145.2      .5    0         .2      .1     -.1
05-41      |   Residential electric power (Dec. 1990=100)..........| 114.2   107.7   107.9    -1.1     .2       .1     -.5      .4
05-51      |   Residential gas (Dec. 1990=100).....................| 112.2   115.9   116.9     -.5     .9       .4      .6     1.0
05-71      |   Gasoline............................................|  51.0    42.6    45.8   -22.9    7.5     -8.0    -8.5     6.5
05-73-02-01|   Fuel oil No. 2......................................|  48.0    39.8    42.1   -23.6    5.8     -5.6   -10.8     6.4
06-35      |   Pharmaceutical preps, ethical (Prescription) 2/.....| 332.4   333.4   338.0    21.4    1.4       .1      .1     1.4
06-36      |   Pharmaceutical preps,proprietary (Over-counter) 2/..| 184.5   184.8   185.6      .3     .4       .3     0        .4
06-71      |   Soaps and synthetic detergents 2/...................| 126.6   125.2   125.4     -.6     .2      -.7     0        .2
06-75      |   Cosmetics and other toilet preparations 2/..........| 133.1   134.0   133.4     1.8    -.4       .2      .3     -.4
07-12      |   Tires, tubes, tread, etc 2/.........................|  94.0    94.0    93.0    -1.1   -1.1       .1     0      -1.1
09-15-01   |   Sanitary papers and health products 2/..............| 145.3   145.4   146.6      .5     .8       .8      .1      .8
09-31-01   |   Newspaper circulation 2/............................| 202.7   202.8   204.6     1.1     .9      0       0        .9
09-32-01   |   Periodical circulation..............................| 194.6   194.3   197.2     2.2    1.5       .5      .1     -.4
09-33      |   Book publishing 2/..................................| 206.5   210.0   212.9     3.7    1.4       .3      .3     1.4
12-1       |   Household furniture 2/..............................| 148.6   149.4   149.4     1.4    0        0        .3     0
12-3       |   Floor coverings 2/..................................| 128.0   128.3   127.1     -.7    -.9       .8     0       -.9
12-4       |   Household appliances ...............................| 109.0   109.0   108.9      .6    -.1      -.1      .2     0
12-5       |   Home electronic equipment 2/........................|  74.7    74.4    74.5    -3.1     .1      0       -.1      .1
12-62      |   Household glassware 2/..............................| 163.1   163.0   163.4      .9     .2      -.1      .1      .2
12-64      |   Household flatware 2/...............................| 138.3   139.4   140.0      .6     .4       .8     0        .4
12-66      |   Lawn and garden equip., ex. tractors 2/.............| 132.1   132.2   132.2      .9    0        0       0       0
14-11-01   |   Passenger cars......................................| 127.0   134.2   132.3     -.8   -1.4       .1     -.2    -1.2
15-11      |   Toys, games, and children's vehicles................| 124.1   123.7   124.1    -1.0     .3       .1     -.2      .2
15-12      |   Sporting and athletic goods 2/......................| 126.2   126.3   126.0      .2    -.2      0       -.1     -.2
15-2       |   Tobacco products 2/.................................| 287.4   363.9   363.0    41.0    -.2       .2    26.3     -.2
15-5       |   Mobile homes 2/.....................................| 155.0   154.8   155.7     1.8     .6       .1     -.3      .6
15-94-02   |   Jewelry, platinum, & karat gold 2/..................| 127.6   128.6   128.9      .3     .2       .1      .2      .2
15-94-04   |   Costume jewelry and novelties 2/....................| 139.8   139.8   140.2     1.0     .3       .2     0        .3
           |                                                       |
           | CAPITAL EQUIPMENT.....................................| 136.7   137.8   137.7     -.1    -.1       .1     0       -.1
           |                                                       |
11-1       |   Agricultural machinery and equipment 2/.............| 150.7   149.6   149.9      .1     .2      -.1     -.1      .2
11-2       |   Construction machinery and equipment................| 145.3   145.4   146.2     1.0     .6       .1      .2     -.3
11-37      |   Metal cutting machine tools 2/......................| 160.2   160.2   160.2      .7    0         .2     -.1     0
11-38      |   Metal forming machine tools 2/......................| 158.3   158.6   159.2     2.3     .4       .1     0        .4
11-39      |   Tools, dies, jigs, fixtures, and ind. molds 2/......| 138.9   139.0   139.0      .4    0         .1     0       0
11-41      |   Pumps, compressors, and equipment...................| 149.4   149.5   150.7     1.6     .8       .2      .3      .2
11-44      |   Industrial material handling equipment 2/...........| 131.8   131.9   132.1     1.3     .2      -.2      .2      .2
11-51      |   Electronic computers (Dec. 1990=100) 2/.............|  23.1    22.0    21.0   -26.3   -4.5     -1.8     -.9    -4.5
11-62      |   Textile machinery 2/................................| 152.8   152.8   152.9      .2     .1      0       0        .1
11-64      |   Paper industries machinery (June 1982=100)..........| 159.7   162.2   162.6     1.8     .2       .6     0        .2
11-65      |   Printing trades machinery 2/........................| 142.8   142.1   142.2     2.4     .1     -1.0     0        .1
11-74      |   Transformers and power regulators 2/................| 131.8   131.3   131.4      .8     .1      -.5     -.3      .1
11-76      |   Communication & related equip. (Dec. 1985=100) 2/...| 113.6   113.4   113.5    -1.1     .1       .1     -.3      .1
11-79-05   |   X-ray and electromedical equipment 2/...............| 105.8   105.9   106.0    -1.4     .1       .9     -.9      .1
11-91      |   Oil field and gas field machinery ..................| 125.9   126.4   126.6      .7     .2      0        .2     -.6
11-92      |   Mining machinery and equipment 2/...................| 142.4   142.3   143.0      .8     .5       .1     0        .5
11-93      |   Office and store machines and equipment 2/..........| 112.3   112.2   111.9     -.3    -.3       .1     -.1     -.3
12-2       |   Commercial furniture 2/.............................| 155.2   155.3   155.6      .6     .2       .1     0        .2
14-11-05   |   Light motor trucks..................................| 150.3   158.3   158.5     1.4     .1      0        .1      .1
14-11-06   |   Heavy motor trucks 2/...............................| 144.7   145.6   145.6     4.1    0        1.8      .1     0
14-14      |   Truck trailers 2/...................................| 135.1   135.3   135.2     1.1    -.1       .5     0       -.1
14-21-02   |   Civilian aircraft (Dec. 1985=100)...................| 150.0   150.2   150.9      .5     .5      0        .3      .2
14-31      |   Ships (Dec. 1985=100) 2/............................| 145.8   145.8   145.8      .3    0        0       0       0
14-4       |   Railroad equipment..................................| 135.3   133.8   134.9      .2     .8      -.4     -.4      .7
           |                                                       |
           |INTERMEDIATE MATERIALS, SUPPLIES, AND COMPONENTS.......| 122.9   121.1   121.2    -2.4     .1      -.2     -.5      .1
           |                                                       |
           | INTERMEDIATE FOODS AND FEEDS..........................| 115.2   114.2   114.9    -3.2     .6       .5     -.6     1.1
           |                                                       |
02-12-03   |   Flour 2/............................................| 103.3   107.1   106.8    -2.5    -.3      1.2    -3.0     -.3
02-53      |   Refined sugar 2/....................................| 120.3   119.7   118.5     -.8   -1.0      -.3      .1    -1.0
02-54      |   Confectionery materials.............................|  93.4    92.8    93.4     -.6     .6      -.2      .2     1.6
02-72      |   Crude vegetable oils 2/.............................| 131.2   121.5   123.7    -1.9    1.8      5.4    -7.3     1.8
02-9       |   Prepared animal feeds 2/............................| 101.8   101.3   101.6   -16.2     .3      1.4      .2      .3
           |                                                       |
           | INTERMEDIATE MATERIALS LESS FOODS AND FEEDS...........| 123.4   121.5   121.5    -2.4    0        -.3     -.5      .1
           |                                                       |
03-1       |   Synthetic fibers 2/.................................| 109.5   107.2   104.9    -5.7   -2.1      -.5      .4    -2.1
03-2       |   Processed yarns and threads 2/......................| 112.7   111.1   110.1    -2.8    -.9      -.5     -.2     -.9
03-3       |   Gray fabrics 2/.....................................| 120.6   119.0   117.8    -4.5   -1.0       .3     -.1    -1.0
03-4       |   Finished fabrics....................................| 123.7   122.6   122.5     -.9    -.1      -.6      .2     -.3
03-83-03   |   Industrial textile products 2/......................| 130.3   130.9   129.2     -.8   -1.3      -.1      .2    -1.3
04-2       |   Leather.............................................| 179.0   178.0   172.5    -4.4   -3.1     -1.0     -.8    -2.8
05-32      |   Liquefied petroleum gas 2/..........................|  52.5    52.1    50.3   -32.6   -3.5      1.5    -5.8    -3.5
____________________________________________________________________________________________________________________________________
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 |                                                       |                       |Jan. 1999 from:|
   code    |                      Grouping                         |_______________________|_______________|________________________
           |                                                       |       |       |       |       |       |       |       |
           |                                                       |Sept.  |Dec.   |Jan.   | Jan.  | Dec.  |Oct. to|Nov. to|Dec. to
           |                                                       |1998 1/|1998 1/|1999 1/| 1998  | 1998  |  Nov. |  Dec. |  Jan.
___________|_______________________________________________________|_______|_______|_______|_______|_______|_______|_______|________
           |                                                       |
           | INTERMEDIATE MATERIALS LESS FOODS AND FEEDS           |
           |   -Continued..........................................|
05-42      |   Commercial electric power...........................| 137.7   126.7   126.8     0      0.1      0.1    -0.2     0.2
05-43      |   Industrial electric power...........................| 135.2   127.5   127.4     0      -.1       .5     -.2      .1
05-52      |   Commercial natural gas (Dec. 1990=100)..............| 102.9   111.3   111.1     -.8    -.2       .2    -1.0      .7
05-53      |   Industrial natural gas (Dec. 1990=100)..............|  98.7   106.8   105.7    -5.1   -1.0      4.0    -4.9      .6
05-54      |   Natural gas to electric utilities (Dec. 1990=100)...|  72.0    81.4    79.2   -16.1   -2.7     -3.1    -3.5     -.8
05-72-03   |   Jet fuels...........................................|  43.1    35.5    37.5   -31.6    5.6     -4.6   -19.9     7.5
05-73-03   |   No. 2 Diesel fuel...................................|  48.1    38.9    39.7   -26.3    2.1     -2.3   -10.8     4.2
05-74      |   Residual fuel 2/....................................|  39.0    36.3    35.2   -31.7   -3.0       .3    -7.2    -3.0
06-1       |   Industrial chemicals 2/.............................| 119.5   119.8   118.9    -5.5    -.8      -.1      .2     -.8
06-21      |   Prepared paint......................................| 155.4   156.4   156.3     2.4    -.1       .4      .1      .1
06-22      |   Paint materials 2/..................................| 144.1   144.6   144.5     1.0    -.1      -.7      .7     -.1
06-31      |   Medicinal and botanical chemicals ..................| 135.2   135.2   141.1     5.9    4.4       .2      .3     2.9
06-4       |   Fats and oils, inedible 2/..........................| 111.3   110.5   110.5   -16.2    0        -.4    -2.4     0
06-51      |   Mixed fertilizers...................................| 115.0   113.4   114.0    -2.4     .5      -.3     -.1     -.3
06-52-01   |   Nitrogenates........................................| 102.9    95.7    95.6   -18.2    -.1     -3.4    -2.7    -1.9
06-52-02   |   Phosphates 2/.......................................| 112.5   113.5   112.8     2.7    -.6       .2    -1.3     -.6
06-53      |   Other agricultural chemicals........................| 145.5   149.4   145.9    -3.3   -2.3      -.3     -.1    -2.7
06-6       |   Plastic resins and materials 2/.....................| 119.6   115.9   115.4   -13.9    -.4     -1.6    -1.0     -.4
07-11-02   |   Synthetic rubber 2/.................................| 116.8   115.7   115.5    -2.7    -.2      -.2     -.3     -.2
07-21      |   Plastic construction products ......................| 125.6   124.7   124.4    -2.5    -.2      -.2      .2      .2
07-22      |   Unsupported plastic film, sheet, & other shapes 2/..| 126.6   126.5   126.1    -3.1    -.3      -.6     0       -.3
07-26      |   Plastic parts and components for manufacturing 2/...| 117.1   117.1   117.1     -.2    0        0        .2     0
08-11      |   Softwood lumber 2/..................................| 175.2   174.2   181.3    -5.0    4.1     -1.1     2.8     4.1
08-12      |   Hardwood lumber ....................................| 178.1   176.3   176.3    -1.6    0        -.3     -.3     -.3
08-2       |   Millwork 2/.........................................| 171.5   171.6   171.6      .4    0        -.2      .1     0
08-3       |   Plywood 2/..........................................| 170.0   161.6   161.8     5.8     .1      3.0     -.2      .1
09-11      |   Woodpulp 2/.........................................| 121.1   112.4   116.1   -11.2    3.3     -4.5     -.8     3.3
09-13      |   Paper...............................................| 144.2   143.5   142.3    -3.8    -.8      -.6    -1.2     -.6
09-14      |   Paperboard..........................................| 149.0   144.3   142.8    -8.4   -1.0     -1.9    -1.6      .6
09-15-03   |   Paper boxes and containers 2/.......................| 154.7   151.2   151.0    -2.5    -.1      -.6     -.9     -.1
09-2       |   Building paper and board 2/.........................| 142.8   130.5   130.9     2.8     .3     -2.4     -.8      .3
09-37      |   Commercial printing (June 1982=100) 2/..............| 152.4   152.8   152.0      .7    -.5      -.1     -.1     -.5
10-15      |   Foundry and forge shop products.....................| 135.0   134.7   135.2      .4     .4      -.1      .1     -.1
10-17      |   Steel mill products 2/..............................| 113.3   109.5   107.9    -6.9   -1.5      -.9    -1.1    -1.5
10-22      |   Primary nonferrous metals 2/........................| 103.5    98.8    99.6   -12.4     .8     -2.0    -1.8      .8
10-25-01   |   Aluminum mill shapes 2/.............................| 140.7   137.1   136.0    -7.8    -.8     -1.0     -.9     -.8
10-25-02   |   Copper and brass mill shapes 2/.....................| 151.6   147.2   146.2    -8.5    -.7      -.7    -1.7     -.7
10-26      |   Nonferrous wire and cable 2/........................| 140.8   136.3   136.0    -5.0    -.2     -1.5    -1.2     -.2
10-3       |   Metal containers 2/.................................| 108.5   108.6   108.6     -.5    0         .1     0       0
10-4       |   Hardware............................................| 147.1   147.2   147.7      .8     .3       .1      .1      .1
10-5       |   Plumbing fixtures and brass fittings................| 174.6   174.4   175.2      .6     .5       .2      .1      .5
10-6       |   Heating equipment...................................| 153.2   153.3   153.5      .5     .1       .1      .1     -.3
10-7       |   Fabricated structural metal products................| 143.2   143.0   142.8     1.0    -.1       .1      .1     -.3
10-88      |   Fabricated ferrous wire products (June 1982=100) 2/.| 130.1   130.3   130.7     1.1     .3       .2     -.2      .3
10-89      |   Other misc. metal products 2/.......................| 126.0   126.1   126.0     -.3    -.1       .1     0       -.1
11-45      |   Mechanical power transmission equipment.............| 157.8   159.0   159.7     1.7     .4       .2      .2     -.2
11-48      |   Air conditioning and refrigeration equipment........| 136.2   136.1   136.0     2.1    -.1       .1      .1     -.1
11-49-02   |   Metal valves, ex.fluid power (Dec. 1982=100) 2/.....| 156.8   159.0   159.7     3.6     .4      1.1      .3      .4
11-49-05   |   Ball and roller bearings............................| 165.6   166.0   166.2     1.0     .1       .1      .1     -.6
11-71      |   Wiring devices......................................| 154.6   152.5   153.1     -.8     .4     -1.0      .1      .4
11-73      |   Motors, generators, motor generator sets............| 145.9   145.7   146.3      .5     .4       .2     -.4      .1
11-75      |   Switchgear, switchboard, etc., equipment............| 148.3   149.5   149.9     1.4     .3       .1      .1     0
11-78      |   Electronic components and accessories 2/............|  99.5    99.5    99.2    -1.9    -.3      -.4     -.1     -.3
11-94      |   Internal combustion engines.........................| 141.0   141.0   142.1     1.4     .8       .1     0        .7
11-95      |   Machine shop products 2/............................| 136.5   136.6   136.8     1.0     .1       .1     0        .1
13-11      |   Flat glass 2/.......................................| 106.7   106.9   104.4    -3.3   -2.3       .1     0      -2.3
13-22      |   Cement..............................................| 147.9   148.3   148.8     5.8     .3       .7      .5      .5
13-3       |   Concrete products...................................| 141.4   141.4   142.1     3.8     .5      0        .2      .4
13-6       |   Asphalt felts and coatings 2/.......................| 100.3   100.2   100.1     1.4    -.1      -.4      .1     -.1
13-7       |   Gypsum products 2/..................................| 181.6   183.7   185.8     8.0    1.1      3.6    -1.5     1.1
13-8       |   Glass containers 2/.................................| 126.0   126.0   126.6      .6     .5      0       0        .5
14-12      |   Motor vehicle parts 2/..............................| 114.6   114.1   113.7    -1.0    -.4      -.1     -.1     -.4
14-23      |   Aircraft engines & engine parts (Dec. 1985=100).....| 136.5   138.6   138.6     1.8    0        -.1     1.4     -.9
14-25      |   Aircraft parts & aux.equip.,nec (June 1985=100) 2/..| 144.2   143.4   143.8     1.5     .3       .1      .1      .3
15-42      |   Photographic supplies 2/............................| 129.0   129.0   129.0      .5    0        0       0       0
15-6       |   Medical/surgical/personal aid devices...............| 143.5   143.9   143.8      .5    -.1      0        .1     -.2
           |                                                       |
           | CRUDE MATERIALS FOR FURTHER PROCESSING................|  92.1    88.8    90.9   -10.6    2.4      -.7    -4.0     2.6
           |                                                       |
           |  CRUDE FOODSTUFFS AND FEEDSTUFFS......................| 101.3    97.2   101.6    -3.7    4.5      -.3    -4.1     5.1
           |                                                       |
01-21      |   Wheat 2/............................................|  74.8    85.9    86.7    -8.4     .9      4.9    -4.4      .9
01-22-02-05|   Corn................................................|  72.5    83.6    83.7   -21.3     .1      7.3      .1    -3.6
01-31      |   Slaughter cattle 2/.................................|  89.4    85.7    91.5    -4.3    6.8      1.7    -6.0     6.8
01-32      |   Slaughter hogs......................................|  48.4    16.6    44.6   -19.9  168.7    -30.9   -46.5   188.6
01-41-02   |   Slaughter broilers/fryers...........................| 177.9   141.4   140.2    12.1    -.8     -8.6    -2.9    -5.6
01-42      |   Slaughter turkeys...................................| 123.3   123.6    96.3     7.2  -22.1     -1.1    -2.6    -3.5
01-6       |   Fluid milk..........................................| 123.3   133.5   130.4    23.1   -2.3      3.4     2.8     -.8
01-83-01-31|   Soybeans 2/.........................................|  90.5    92.7    91.8   -18.9   -1.0      4.1    -3.4    -1.0
02-52-01-01|   Cane sugar,raw 2/...................................| 115.9   117.9   119.0     2.1     .9       .8     1.2      .9

           |                                                       |
           |  CRUDE NONFOOD MATERIALS..............................|  82.5    79.8    80.3   -15.8     .6     -1.1    -3.8      .5
           |                                                       |
01-51-01-01|   Raw cotton..........................................| 119.4    98.7    94.4    -8.6   -4.4      -.5   -11.9    -4.3
01-92-01-01|   Leaf tobacco 2/.....................................| 105.2   112.6   112.4     -.4    -.2     -2.9     5.8     -.2
04-11      |   Cattle hides 2/.....................................| 162.0   143.2   143.7    -7.9     .3     -7.5     9.7      .3
05-1       |   Coal 2/.............................................|  90.1    92.1    94.7     3.3    2.8      2.5    -1.7     2.8
05-31      |   Natural gas 2/......................................|  69.8    80.3    74.7   -17.8   -7.0      2.7      .5    -7.0
05-61      |   Crude petroleum 2/..................................|  36.0    26.1    30.4   -30.0   16.5     -7.4   -20.2    16.5
08-5       |   Logs, timber, etc...................................| 202.9   199.6   200.7    -6.3     .6      -.8      .2    -1.2
09-12      |   Wastepaper 2/.......................................| 140.5   116.5   123.2   -24.6    5.8     -4.3    -8.2     5.8
10-11      |   Iron ore 2/.........................................|  95.6    95.7    94.9     -.3    -.8      -.1      .1     -.8
10-12      |   Iron and steel scrap 2/.............................| 147.5   118.7   126.1   -36.1    6.2     -8.5      .7     6.2
10-21      |   Nonferrous metal ores (Dec. 1983=100) 2/............|  65.7    61.1    60.3   -10.3   -1.3     -2.7    -4.8    -1.3
10-23-01   |   Copper base scrap 2/................................| 113.1   100.5    94.8   -22.7   -5.7     -1.3    -8.5    -5.7
10-23-02   |   Aluminum base scrap.................................| 149.7   144.4   142.9   -23.1   -1.0     -1.3    -3.3    -2.7
13-21      |   Construction sand, gravel, and crushed stone........| 153.6   154.0   154.2     2.7     .1       .1      .4     -.4
____________________________________________________________________________________________________________________________________

1/  The indexes for September 1998 have been recalculated to incorporate                2/  Not seasonally adjusted.
    late reports and corrections by respondents. All indexes are                        3/  Not available.
    subject to revision 4 months after original publication.





Table 3.  Producer price indexes for selected commodity groupings
(1982=100 unless otherwise indicated)
_______________________________________________________________________________________________
         |                                                |                                   |
         |                                                |         Unadjusted index 1/       |
Commodity|                                                |___________________________________|
  code   |                    Grouping                    |Sept. 1998 | Dec. 1998 | Jan. 1999 |
_________|________________________________________________|___________|___________|___________|
         |                                                |           |           |           |
         | Finished Goods (1967=100)......................|   366.6   |   367.6   |   369.1   |
         | All commodities................................|   123.8   |   122.7   |   123.2   |
         |                                                |           |           |           |
         |                                                |           |           |           |
         |            MAJOR COMMODITY GROUPS              |           |           |           |
         |                                                |           |           |           |
         | Farm products and processed foods and feeds....|   122.2   |   120.4   |   122.2   |
01       |   Farm products................................|   102.0   |    99.1   |   102.4   |
02       |   Processed foods and feeds....................|   132.1   |   131.0   |   132.0   |
         |                                                |           |           |           |
         | Industrial commodities.........................|   124.1   |   123.1   |   123.4   |
03       |   Textile products and apparel.................|   122.8   |   122.1   |   121.6   |
04       |   Hides, skins, leather, and related products..|   149.3   |   146.6   |   145.5   |
05       |   Fuels and related products and power 2/......|    74.3   |    69.9   |    70.9   |
06       |   Chemicals and allied products 2/.............|   143.2   |   142.9   |   143.0   |
07       |   Rubber and plastic products..................|   122.5   |   122.1   |   122.0   |
08       |   Lumber and wood products.....................|   178.0   |   176.1   |   177.5   |
09       |   Pulp, paper, and allied products.............|   171.5   |   170.3   |   170.8   |
10       |   Metals and metal products....................|   126.7   |   124.2   |   123.9   |
11       |   Machinery and equipment......................|   124.7   |   124.5   |   124.6   |
12       |   Furniture and household durables.............|   131.2   |   131.4   |   131.3   |
13       |   Nonmetallic mineral products.................|   136.4   |   136.6   |   136.8   |
14       |   Transportation equipment.....................|   139.6   |   142.2   |   141.9   |
15       |   Miscellaneous products.......................|   156.3   |   166.1   |   165.8   |
         |                                                |           |           |           |
         | Industrial commodities less fuels and related  |           |           |           |
         |   products and power...........................|   138.5   |   138.7   |   138.7   |
         |                                                |           |           |           |
         |                                                |           |           |           |
         |             OTHER COMMODITY GROUPINGS          |           |           |           |
         |                                                |           |           |           |
01-1     | Fruits and melons, fresh and dry vegetables,   |           |           |           |
         |   and tree nuts................................|   114.9   |   115.6   |   120.6   |
01-2     | Grains.........................................|    76.3   |    87.1   |    87.0   |
01-3     | Slaughter livestock............................|    79.0   |    67.3   |    79.3   |
01-4     | Slaughter poultry..............................|   164.1   |   136.2   |   129.5   |
01-5     | Plant and animal fibers........................|   117.8   |    97.7   |    93.5   |
01-7     | Chicken eggs...................................|   107.4   |   121.5   |   109.7   |
01-8     | Hay, hayseeds, and oilseeds....................|   112.4   |   113.9   |   112.0   |
01-83    | Oilseeds.......................................|   101.0   |   105.5   |   103.2   |
01-9     | Other farm products............................|   156.9   |   167.9   |   167.7   |
02-1     | Cereal and bakery products.....................|   156.3   |   157.5   |   157.9   |
02-2     | Meats, poultry, and fish.......................|   113.9   |   107.6   |   110.9   |
02-22    | Processed poultry..............................|   129.4   |   117.1   |   114.9   |
02-5     | Sugar and confectionery........................|   134.7   |   134.8   |   135.2   |
02-6     | Beverages and beverage materials...............|   136.6   |   137.4   |   137.6   |
02-63    | Packaged beverage materials....................|   134.6   |   136.1   |   134.6   |
02-7     | Fats and oils..................................|   143.3   |   140.0   |   139.2   |
03-81    | Apparel........................................|   126.9   |   126.7   |   126.8   |
04-4     | Other leather and related products.............|   144.7   |   144.7   |   144.9   |
05-3     | Gas fuels 2/...................................|    64.4   |    72.0   |    67.4   |
05-4     | Electric power.................................|   135.2   |   126.6   |   126.7   |
05-7     | Refined petroleum products.....................|    49.7   |    41.8   |    44.6   |
06-3     | Drugs and pharmaceuticals......................|   247.2   |   248.0   |   252.0   |
06-5     | Agricultural chemicals and products............|   126.2   |   126.1   |   124.7   |
06-7     | Other chemicals and allied products............|   135.3   |   135.0   |   134.8   |
07-1     | Rubber and rubber products.....................|   115.3   |   115.1   |   114.6   |
07-11    | Rubber, except natural rubber..................|   116.2   |   115.1   |   114.9   |
07-13    | Miscellaneous rubber products..................|   138.8   |   138.6   |   138.7   |
07-2     | Plastic products...............................|   129.1   |   128.7   |   128.7   |
08-1     | Lumber.........................................|   174.2   |   172.9   |   177.8   |
09-1     | Pulp, paper, and products, excluding building  |           |           |           |
         |   paper and board..............................|   146.1   |   143.4   |   143.3   |
09-15    | Converted paper and paperboard products........|   152.0   |   150.3   |   150.4   |
10-1     | Iron and steel.................................|   120.5   |   115.0   |   114.6   |
10-2     | Nonferrous metals..............................|   120.7   |   116.5   |   115.8   |
10-25    | Nonferrous mill shapes.........................|   135.1   |   131.9   |   130.9   |
11-3     | Metalworking machinery and equipment...........|   147.3   |   147.5   |   147.5   |
11-4     | General purpose machinery and equipment........|   147.9   |   148.4   |   148.9   |
11-6     | Special industry machinery.....................|   159.4   |   160.1   |   160.5   |
11-7     | Electrical machinery and equipment.............|   120.6   |   120.5   |   120.5   |
11-9     | Miscellaneous machinery and equipment..........|   132.1   |   132.3   |   132.8   |
12-6     | Other household durable goods..................|   151.6   |   151.8   |   152.0   |
13-2     | Concrete ingredients...........................|   149.0   |   149.3   |   149.6   |
14-1     | Motor vehicles and equipment...................|   128.8   |   132.8   |   132.0   |
15-1     | Toys, sporting goods, small arms, etc..........|   132.4   |   132.4   |   132.4   |
15-4     | Photographic equipment and supplies............|   114.3   |   114.3   |   113.3   |
15-9     | Other miscellaneous products...................|   134.8   |   134.6   |   135.1   |
__________________________________________________________|___________|___________|___________|

1/  Data for September 1998 have been revised to reflect the availability of late reports and                                                                                                       
    corrections by respondents.  All data are subject to revision 4 months after original 
    publication.

2/  Prices of some items in this grouping are lagged 1 month.

Table 4.  Producer price indexes for the net output of major industry groups, not seasonally adjusted
__________________________________________________________________________________________________________________
                  |                                              |     |         Index         |  Percent change
  Industry        |                Industry 1/                   |Index|_______________________|to_Jan._1999_from:
    code          |                                              |base |       |       |       |        |
                  |                                              |     |Sep.   |Dec.   |Jan.   |  Jan.  |  Dec.
                  |                                              |     |1998 2/|1998 2/|1999 2/|  1998  |  1998
__________________|______________________________________________|_____|_______|_______|_______|________|_________
                  |                                              |     |
                  |Total mining industries...................... |12/84|  65.7    65.3    65.0    -14.9     -0.5
       10         | Metal mining................................ |12/84|  72.4    68.9    68.0     -7.5     -1.3
       12         | Coal mining................................. |12/85|  87.3    88.5    89.7      1.7      1.4
       13         | Oil and gas extraction...................... |12/85|  61.8    61.4    60.8    -20.2     -1.0
       14         | Mining and quarrying of non-metallic         |     |
                  |  minerals, except fuels..................... |12/84| 132.9   132.6   132.9      1.8       .2
                  |                                              |     |
                  |Total manufacturing industries............... |12/84| 125.9   125.8   126.3      -.1       .4
       20         | Food and kindred products................... |12/84| 127.1   126.0   126.7       .7       .6
       21         | Tobacco manufactures........................ |12/84| 247.0   315.7   316.0     43.9       .1
       22         | Textile mill products....................... |12/84| 118.3   117.8   117.1     -1.6      -.6
       23         | Apparel and other finished products made     |     |
                  |  from fabrics and similar materials......... |12/84| 125.1   125.0   125.1       .6       .1
       24         | Lumber and wood products, except furniture.. |12/84| 157.3   155.7   156.7      -.4       .6
       25         | Furniture and fixtures...................... |12/84| 139.7   140.1   140.2       .8       .1
       26         | Paper and allied products................... |12/84| 135.5   134.0   133.5     -3.1      -.4
       27         | Printing, publishing, and allied industries. |12/84| 174.3   174.9   175.9      1.6       .6
       28         | Chemicals and allied products............... |12/84| 148.5   147.9   148.1       .5       .1
       29         | Petroleum refining and related products..... |12/84|  64.2    55.8    58.8    -20.3      5.4
       30         | Rubber and miscellaneous plastic products... |12/84| 121.9   121.7   121.6      -.9      -.1
       31         | Leather and leather products................ |12/84| 137.2   136.7   136.1      -.9      -.4
       32         | Stone, clay, glass, and concrete products... |12/84| 130.2   130.2   130.5      2.3       .2
       33         | Primary metal industries.................... |12/84| 120.1   117.2   116.3     -5.7      -.8
       34         | Fabricated metal products, except machinery  |     |
                  |  and transportation equipment............... |12/84| 128.9   128.8   128.9       .5       .1
       35         | Machinery, except electrical................ |12/84| 117.6   117.4   117.4      -.6    0
       36         | Electrical and electronic machinery,         |     |
                  |  equipment, and supplies.................... |12/84| 110.2   109.8   109.9      -.8       .1
       37         | Transportation equipment.................... |12/84| 131.8   134.8   134.7       .7      -.1
       38         | Measuring and controlling instruments;       |     |
                  |  photographic, medical, optical goods;       |     |
                  |  watches, clocks............................ |12/84| 125.9   126.1   126.0       .3      -.1
       39         | Miscellaneous manufacturing industries...... |12/85| 129.9   129.8   130.1       .4       .2
                  |                                              |     |
                  |Services industries                           |     |
       40         | Railroad transportation..................... |12/96| 101.8   101.4   101.4      -.4    0
       42         | Motor freight transportation and warehousing |06/93| 112.4   112.6   113.2      2.4       .5
       43         | United States Postal Service................ |06/89| 132.3   132.3   135.4      2.3      2.3
       44         | Water transportation........................ |12/92| 108.9   106.0   106.0      2.9    0
       45         | Transportation by air....................... |12/92| 125.2   126.5   127.6      4.1       .9
       46         | Pipe lines, except natural gas.............. |12/86|  99.2    99.2    96.9     -2.4     -2.3
       80         | Health services............................. |12/94| 108.0   108.3   108.9      1.8       .6
       81         | Legal services.............................. |12/96| 106.5   106.7   107.2      2.0       .5
__________________________________________________________________________________________________________________
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 September 1998 have been recalculated to incorporate late reports and corrections by
   respondents.  All indexes are subject to revision 4 months after original publication.
3/ Not available.
Table 5.  Producer price indexes by stage of processing, seasonally adjusted
(1982=100)
____________________________________________________________________________________________________________
                                                       |     
                                                       |                      Index 1/   
                                                       |____________________________________________________
               Grouping                                |        |        |        |        |        |       
                                                       |  Aug.  |  Sep.  |  Oct.  |  Nov.  |  Dec.  |  Jan. 
                                                       |  1998  |  1998  |  1998  |  1998  |  1998  |  1999 
_______________________________________________________|________|________|________|________|________|_______
      Finished goods...................................|  130.3    130.6    130.9    130.6    131.1    131.8
        Finished consumer goods........................|  128.6    128.8    129.2    128.8    129.5    130.5
          Finished consumer foods......................|  134.1    134.4    134.9    134.3    134.3    136.5
            Crude......................................|  119.3    122.7    132.9    125.6    128.5    138.2
            Processed..................................|  135.2    135.3    135.1    135.0    134.8    136.4
          Finished consumer goods, excluding foods.....|  126.1    126.2    126.6    126.3    127.3    127.8
            Nondurable goods less foods................|  121.9    121.8    122.3    121.7    123.2    124.0
            Durable goods..............................|  132.4    133.1    133.3    133.3    133.3    132.9
        Capital equipment..............................|  137.2    137.6    137.5    137.7    137.7    137.5
          Manufacturing industries.....................|  137.8    138.0    138.0    138.1    138.1    138.1
          Nonmanufacturing industries..................|  136.9    137.4    137.3    137.4    137.4    137.1
                                                       |
      Intermediate materials, supplies, and components.|  122.8    122.4    122.2    121.9    121.3    121.4
        Materials and components for manufacturing.....|  125.9    125.4    125.1    124.7    124.3    124.2
          Materials for food manufacturing.............|  123.6    124.3    124.7    124.8    123.7    125.3
          Materials for nondurable manufacturing.......|  126.4    125.1    124.7    124.0    123.5    123.4
          Materials for durable manufacturing..........|  127.8    127.2    126.1    125.4    124.8    124.1
          Components for manufacturing.................|  125.8    125.9    125.8    125.7    125.8    125.7
        Materials and components for construction......|  147.3    147.3    146.7    146.7    146.8    147.0
        Processed fuels and lubricants.................|   80.0     79.6     80.2     79.4     77.0     78.2
          Manufacturing industries ....................|   85.0     84.7     84.8     84.9     83.2     83.9
          Nonmanufacturing industries..................|   77.0     76.5     77.5     76.2     73.3     74.8
        Containers.....................................|  140.9    140.7    140.0    139.4    138.6    138.5
        Supplies.......................................|  134.8    134.3    134.2    134.3    134.3    134.1
          Manufacturing industries.....................|  140.6    140.7    140.7    140.7    140.7    140.3
          Nonmanufacturing industries..................|  132.2    131.6    131.3    131.5    131.6    131.4
            Feeds......................................|   98.0     92.9     90.6     92.4     92.5     93.0
            Other supplies.............................|  136.3    136.3    136.3    136.3    136.3    136.1
                                                       |
      Crude materials for further processing...........|   93.3     91.6     93.8     93.1     89.4     91.7
        Foodstuffs and feedstuffs......................|  100.9    100.0    102.9    102.6     98.4    103.4
        Nonfood materials..............................|   84.8     82.6     84.1     83.2     80.0     80.4
          Nonfood materials except fuel 2/.............|   80.1     83.1     81.0     77.8     72.7     75.5
            Manufacturing 2/...........................|   72.6     75.4     73.5     70.4     65.5     68.2
            Construction...............................|  194.1    192.7    192.4    191.3    192.4    190.6
          Crude fuel 3/................................|   84.4     75.3     81.6     83.9     83.7     80.6
            Manufacturing industries...................|   83.4     74.3     80.0     81.4     81.9     77.5
            Nonmanufacturing industries................|   86.0     76.7     83.1     85.7     85.3     82.4
                                                       |
                     Special groupings                 |
                                                       |
      Finished goods, excluding foods..................|  129.1    129.4    129.6    129.4    130.1    130.4
      Intermediate materials less foods and feeds......|  123.2    122.9    122.7    122.3    121.7    121.8
      Intermediate foods and feeds.....................|  115.8    114.7    114.2    114.8    114.1    115.3
      Crude materials less agricultural products 2/....|   83.8     81.3     82.9     82.0     78.9     79.3
                                                       |
      Finished energy goods............................|   73.9     73.6     74.4     73.3     71.6     72.9
      Finished goods less energy.......................|  141.0    141.4    141.6    141.5    142.7    143.2
      Finished consumer goods less energy..............|  142.5    142.9    143.2    143.0    144.6    145.5
                                                       |
      Finished goods less foods and energy.............|  143.7    144.1    144.1    144.3    145.8    145.7
      Finished consumer goods less foods and energy....|  147.9    148.4    148.4    148.6    151.3    151.2
      Consumer nondurable goods less foods and energy..|  159.9    160.1    160.0    160.3    165.3    165.6
                                                       |
      Intermediate energy goods........................|   79.8     79.4     80.0     79.2     76.7     78.1
      Intermediate materials less energy...............|  132.4    132.0    131.6    131.4    131.2    131.0
      Intermediate materials less foods and energy.....|  133.5    133.1    132.8    132.5    132.3    132.1
                                                       |
      Crude energy materials 2/........................|   64.5     62.2     65.4     65.4     62.0     62.4
      Crude materials less energy......................|  110.8    109.7    110.8    109.7    106.0    109.7
      Crude nonfood materials less energy 3/...........|  139.9    138.2    134.5    130.9    128.8    129.0
_____________________________________________________________________________________________________________

  1/  All seasonally adjusted indexes are subject to change up to 5 years after original publication due
      to the recalculation of seasonal factors each January.  The indexes for September 1998 have been
      recalculated to incorporate late reports and corrections by respondents.  
  2/  Includes crude petroleum.
  3/  Excludes crude petroleum.

Technical Notes





Brief Explanation of
Producer Price Indexes

     Producer price indexes (PPI) measure average changes in
prices received by domestic producers of commodities in all
stages of processing. Most of the information used in
calculating the indexes is obtained through the systematic
sampling of nearly every industry in the manufacturing and
mining sectors of the economy. The PPI program also includes
some information from other sectors--agriculture, fishing,
forestry, services, and gas and electricity. Because
producer price indexes are designed to measure only the
change in prices received for the output of domestic
industries, imports are not included. The sample currently
contains about 3,200 commodities and 80,000 quotations per
month.
     There are three primary systems of indexes within the
PPI program: (1) Stage of processing indexes; (2) commodity
indexes; and (3) indexes for the net output of industries
and their products. The stage-of-processing structure
(tables 1 and 2) organizes products by class of buyer and
degree of processing. The commodity structure (tables 2 and
3) organizes products by similarity of end-use or material
composition. The entire output of various industries is
sampled to derive price indexes for the net output of
industries and their products (table 4).
     Within the stage-of-processing system, finished goods
are commodities that will not undergo further processing and
are ready for sale to the final demand user, either an
individual consumer or business firm. Consumer foods include
unprocessed foods such as eggs and fresh vegetables, as well
as processed foods such as bakery products and meats. Other
finished consumer goods include durable goods such as
automobiles, household furniture, and appliances, and
nondurable goods such as apparel and home heating oil.
Capital equipment includes producer durable goods such as
heavy motor trucks, tractors, and machine tools.
     The stage-of-processing category for intermediate
materials, supplies, and components consists partly of
commodities that have been processed but require further
processing. Examples of such semifinished goods include
flour, cotton yarn, steel mill products, and lumber. The
intermediate goods category also encompasses nondurable,
physically complete items purchased by business firms as
inputs for their operations. Examples include diesel fuel,
belts and belting, paper boxes, and fertilizers.
     Crude materials for further processing are products
entering the market for the first time that have not been
manufactured or fabricated and that are not sold directly to
consumers. Crude foodstuffs and feedstuffs include items
such as grains and livestock. Examples of crude nonfood
materials include raw cotton, crude petroleum, coal, hides
and skins, and iron and steel scrap.
     Producer price indexes for the net output of industries
and their products are grouped according to the Standard
Industrial Classification (SIC) and the Census product code
extension of the SIC. Industry price indexes are compatible
with other economic time series organized by SIC codes, such
as data on employment, wages, and productivity. Table 4
lists indexes for the net output of major mining and
manufacturing industry groups at the 2-digit level.
     Producer price indexes are based on selling prices
reported by establishments of all sizes selected by
probability sampling, with the probability of selection
proportionate to size. Individual items and transaction
terms from these firms are also chosen by probability
proportionate to size. BLS strongly encourages cooperating
companies to supply actual transaction prices at the time of
shipment to minimize the use of list prices. Prices are
normally reported by mail questionnaire for the Tuesday of
the week containing the 13th.
     Price data are provided on a voluntary and confidential
basis; no one but sworn BLS employees are allowed access to
individual company price reports. All producer price indexes
are routinely subject to revision once, 4 months after
original publication, to reflect the availability of late
reports and corrections by respondents.
     Net output values of shipments are used as weights for
industry indexes. Net output values refer to the value of
shipments from establishments in one industry to
establishments classified in another industry. However,
weights for commodity price indexes are based on gross
shipment values, including shipment values between
establishments within the same industry. As a result, broad
commodity grouping indexes such as the all commodities index
are affected by the multiple counting of price change at
successive stages of processing, which can lead to
exaggerated or misleading signals about inflation. Stage-of-
processing indexes partially correct this defect, but
industry indexes consistently correct for this at all levels
of aggregation. Therefore, industry and stage-of-processing
indexes are more appropriate than broad commodity groupings
for economic analysis of general price trends.
     Weights for most traditional commodity groupings of the
PPI, as well as all indexes (such as stage-of-processing
indexes) calculated from traditional commodity groupings,
currently reflect 1987 values of shipments as reported in
the Census of Manufactures and other sources. From January
1987 through December 1991, PPI weights were derived from
1982 shipment values. Industry indexes shown in table 4 are
also now calculated with 1987 net output weights.
     Effective with publication of January 1988 data, many
important PPI series (including stage-of-processing
groupings and most commodity groups and individual items)
were placed on a new reference base, 1982=100, to coincide
with the reference year of the shipment weights. From 1971
through 1987, the standard reference base for most PPI
series was 1967=100. Except for rounding differences, the
shift to the new reference base did not alter any changes to
previously published percent changes for affected PPI
series. (See "Calculating Index Changes," below.) The new
reference base is not used for indexes with a base later
than December 1981, nor for indexes for the net output of
industries and their products.
     For further information on the underlying concepts and
methodology of the Producer Price Index, see chapter 16,
"Producer Prices," in BLS Handbook of Methods (September
1992), Bulletin 2414. Reprints are available from the Bureau
of Labor Statistics on request.

Calculating Index Changes

     Movements of price indexes from one month to another
are usually expressed as percent changes rather than as
changes in index points because index point chances are
affected by the level of the index in relation to its base
period, while percent changes are not. The box shows the
computation of index point and percent changes.
     Percent changes for 3-month and 6-month periods can be
expressed as annual rates that are computed according to the
standard formula for compound growth rates. These data
indicate what the percent change would be if the rate for a
given 3- or 6-month span were maintained for a 12-month
period.





                Index Point Change

     Finished Goods Price Index    107.5
     Less previous index           104.0
     Equals index point change       3.5

          Index Percent Change

     Index point change              3.5
     Divided by the previous index 104.0
     Equals                          0.034
     Result multiplied by 100        0.034 x 100
     Equals percent change           3.4

     Each index measures price changes from a reference
period which equals 100.0 (1982 or some later month). An
increase of 5.5 percent from the reference period in the
Finished Goods Price Index, for example, is shown as 105.5.
This change can also be expressed in dollars as follows:
"Prices received by domestic producers of a systematic
sample of finished goods have risen from $100 in 1982 to
$105.50 to-day." Likewise, a current index of 90.0 would
indicate that prices received by producers of finished goods
today are 10 percent lower than they were in 1982.

Seasonally Adjusted
and Unadjusted Data

     Because price data are used for different purposes by
different groups, the Bureau of Labor Statistics publishes
seasonally adjusted as well as unadjusted changes each
month.
     Seasonally adjusted data are preferred for analyzing
general price trends in the economy because they eliminate
the effect of changes that normally occur at about the same
time and in about the same magnitude every year-such as
price movements resulting from normal weather patterns,
regular production and marketing cycles, model changeovers,
seasonal discounts, and holidays. For these reasons,
seasonally adjusted data more clearly reveal underlying
cyclical trends.
     Unadjusted data are of primary interest to users who
need information which can be related to actual dollar
values of transactions. Individuals requiring this
information include marketing specialists, purchasing
agents, budget and cost analysts, contract specialists, and
commodity traders. It is the unadjusted data that are
generally cited in escalating long-term contracts such as
purchasing agreements or real estate leases. (See Escalation
and Producer Price Indexes: A Guide for Contracting Parties,
BLS Report 807, September 1991, available on request from
BLS.)
     For more information, see "Appendix A: Seasonal
Adjustment Methodology at BLS," in the BLS Handbook of
Methods (September 1992), Bulletin 2414.