FOR DATA ONLY:  (202) 606-7828     USDL 97-402
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), FRIDAY,
http://stats.bls.gov/ppihome.htm   NOVEMBER 14, 1997

                  Producer Price Indexes -- October 1997

     The Producer Price Index for Finished Goods increased 0.1 percent in
October, seasonally adjusted, the Bureau of Labor Statistics of the U. S.
Department of Labor reported today.  This followed a rise of 0.5 percent in
September.  Prices for finished goods other than foods and energy showed no
change in October after increasing 0.4 percent a month ago.  Prices
received by domestic producers of intermediate goods fell 0.1 percent in
October after increasing 0.3 percent in the previous month.  The index for
crude materials rose 4.0 percent after increasing 0.6 percent in September.
(See table A.)

Table A.  Monthly and annual percent changes in selected stage-of-
processing price
indexes, seasonally adjusted
                     Finish                                  
                         ed
                      goods
                                                             
                                     Change in            
                            Except   Finished   Inter-    
                                       goods
                             foods    from 12   mediateCrude
                              and     months
Month  Total  Foods  Energy energy      ago      Goods goods
                                     (unadj.)
 1996                                                     
 Oct.     0.4    0.8    1.7    -0.1         3.1   -0.2   -0.7
 Nov.     0.2      0    0.9       0         3.0   -0.2    2.7
 Dec.     0.5   -0.2    3.3     0.1         2.8    0.5    6.2
                                                             
 1997                                                        
 Jan.    -0.3   -1.0   -0.2       0         2.5    0.2    3.8
 Feb.    -0.3   -0.4   -1.2    -0.1         2.2   -0.2   -8.3
 Mar.    -0.2    0.8   -3.1     0.1         1.5   -0.4   -7.7
 Apr.    -0.5   -0.4   -3.2    -0.1         0.8   -0.3    0.6
 May     -0.2    0.4   -1.3    -0.2         0.4   -0.2    2.1
 June   r-0.2  r-0.9   r0.5     0.1        -0.1      0  r-3.2
 July    -0.1  r-0.3    0.1    -0.1        -0.2   -0.2     r0
 Aug.     0.3    0.3    1.4     0.1        -0.2    0.1    0.7
Sept.     0.5    0.1    1.5     0.4           0    0.3    0.6
 Oct.     0.1    0.4    0.1       0        -0.2   -0.1    4.0
r=revised.  Some of the figures shown above and elsewhere in this release
may differ
from those previously reported because data for June 1997 have been revised
to reflect
the availability of late reports and corrections by respondents.

                                    -2-

     The October increase in the index for finished goods was led by a 0.4-
percent rise for finished consumer foods.  Prices for both finished energy
goods and for consumer goods other than foods and energy inched up 0.1
percent in October.  Partially offsetting these increases were prices for
capital equipment, which fell slightly in October.

     For the first 10 months of 1997, the Producer Price Index for Finished
Goods declined at a 1.2-percent seasonally adjusted annual rate (SAAR).
This compares with a 2.8-percent increase during all of 1996.  Prices for
finished goods other than foods and energy increased at a 0.3-percent SAAR
for the first 10 months of 1997 after rising 0.6 percent in the prior year.

     Before seasonal adjustment, the Producer Price Index for Finished
Goods increased 0.5 percent in October to stand at 132.4 (1982=100).  From
October 1996 to October 1997, the finished goods index decreased 0.2
percent.  During this same period, prices for finished energy goods fell
1.5 percent, consumer foods prices declined 1.2 percent, and prices for
finished goods other than foods and energy rose 0.3 percent.  Prices
received by domestic producers of intermediate goods moved down 0.4 percent
during the 12 months ended in October 1997, and crude materials prices
increased 0.3 percent over the same period.

Table B.  Monthly and annual percent changes in selected price indexes for
intermediate goods and
crude goods, seasonally adjusted
              Interm                           Crude           
              ediate                           goods
              goods
                            Change in                        Change in
                            Intermedi                          crude
                               ate
                     Exclud   Goods                  Excludi   goods
                      ing      from                    ng
                     foods  12 months         Energy  foods   From 12
                      and      ago                     and   months ago
Month  Foods  Energy Energy  (unadj.)   Foods (unadj energy   (unadj.)
                                                .)
 1996                                                             
 Oct.    -2.0    1.3   -0.2        0.5   -3.1    2.1   -0.1     9.4
 Nov.    -3.2   -0.2    0.1        0.5   -2.5   11.1   -0.2     10.6
 Dec.    -0.6    2.9    0.1        0.7   -2.7   19.3      0     14.7
                                                                  
 1997                                                             
 Jan.    -0.5    0.6    0.1        0.9   -1.2    8.9    2.3     16.1
 Feb.    -0.1   -0.8    0.1        1.1   -1.4  -17.9    1.1     4.5
 Mar.     1.8   -3.8      0        0.6    2.0  -21.3    0.3     -2.2
 Apr.     0.5   -2.5      0       -0.1    3.1   -0.9   -2.3     -5.7
 May      0.5   -1.5    0.1       -0.6   -0.2    5.8    1.3            r-
                                                            4.7
 June   r-1.5   r0.5     r0      r-0.3  r-5.6  r-2.0  r-0.3            r-
                                                            5.5
 July   r-1.1  r-1.4      0       -0.3   r0.5  r-0.6  r-0.1     -7.3
 Aug.    -0.7    0.7    0.1       -0.4   -0.1    1.7    0.8     -7.1
Sept.     1.4    1.4      0       -0.6   -0.3    2.6   -1.0     -4.2
 Oct.    -2.8    0.5    0.1       -0.4      0   10.7    0.3     0.3
r=revised.  Some of the figures shown above and elsewhere in this release
may differ from those previously reported because
data for June 1997 have been revised to reflect the availability of late
reports and corrections by respondents.

                                    -3-

Finished goods

     The Producer Price Index for Finished Consumer Foods increased 0.4
percent, seasonally adjusted, following a 0.1-percent gain in September.
Prices for fresh and dry vegetables turned up 16.8 percent in October after
falling 5.1 percent in the previous month.  The indexes for dairy products
and for finfish and shellfish rose more than in the prior month.  Prices
for shortening and cooking oils rose after falling in September.  By
contrast, the index for eggs for fresh use turned down 10.0 percent after
rising 13.8 percent a month ago.  Prices for fresh fruits and melons rose
less than in the previous month.  The indexes for roasted coffee, pork, and
for beef and veal fell more than in September.

     The index for finished consumer goods other than foods and energy rose
0.1 percent in October.  A 0.7-percent increase in prices for passenger
cars was a key factor behind this month's advance.  (In accordance with our
usual practice, most new model year passenger cars and light trucks were
introduced into the PPI in October.  See "Report on Quality Changes for
1998 Model Vehicles.")  Price increases for prescription drugs and book
publishing also contributed to October's increase.  The small rise in the
index for consumer goods less foods and energy follows a 0.5-percent
increase in September.  This deceleration can be traced to prices for
tobacco products, which showed no change in October after rising 3.2
percent in the previous month.  The price increase for passenger cars was
smaller than in September, and the index for light trucks turned down after
rising a month ago.

     The index for finished energy goods rose 0.1 percent in October.
Rising prices for residential natural gas and residential electric power
were the most important factors in the increase.  The advance in energy
prices in October was less than the 1.5-percent rise a month ago.  This
deceleration was primarily due to the index for gasoline, which fell 3.6
percent in October following a 2.2-percent advance in September.

     The index for capital equipment turned down 0.1 percent in October
after rising 0.3 percent in September.  This deceleration was led by a
downturn of 0.7 percent in prices for light motor trucks.  The indexes for
heavy trucks and civilian aircraft also fell after rising in the prior
month.

Intermediate goods

     The Producer Price Index for Intermediate Materials, Supplies, and
Components decreased 0.1 percent in October, seasonally adjusted.  This
decline was led by a 2.8-percent drop in the index for intermediate foods
and feeds.  Prices for materials for durable manufacturing fell 0.4
percent, and the index for construction materials declined 0.2 percent.
Prices for materials for nondurable manufacturing showed no change.  By
contrast, the index for energy goods rose 0.5 percent.

     October's 0.1-percent drop in prices for intermediate goods follows a
0.3-percent gain in the prior month.  The index for intermediate foods and
feeds, which fell after advancing a month ago, contributed to this
downturn.  Price increases for intermediate energy goods slowed from 1.4
percent in September to 0.5 percent in October.  In addition, the index for
nondurable manufacturing materials was unchanged after increasing in
September.  Prices for durable manufacturing materials declined following
no change in the previous month.  The index for construction materials fell
more in October than in September.  (See table B.)
                                    -4-

     The index for intermediate foods and feeds fell 2.8 percent in
October.  A 6.4-percent decrease in prices for prepared animal feeds led
the decline.  Also contributing were lower prices for confectionery
materials and pork.  October's 2.8-percent decrease for intermediate foods
and feeds follows a 1.4-percent rise one month ago.  The downturn is mostly
explained by the index for prepared animal feeds, which fell 6.4 percent
after increasing 2.8 percent in the prior month.  Prices for confectionery
materials, flour, natural and processed cheese, and refined sugar also
declined after rising in the previous month.  Pork prices fell more than in
September.

     The index for intermediate energy goods rose 0.5 percent in October.
This advance was led by increases for both utility natural gas and
liquefied petroleum gas.  October's 0.5-percent rise in prices for
intermediate energy goods follows a 1.4-percent advance in September.  The
slowdown was led by the index for commercial electric power, which
increased 0.2 percent after rising 2.3 percent a month ago.  Prices for
gasoline fell 3.6 percent after rising 2.2 percent in the previous month.
By contrast, the indexes for No. 2 diesel fuel and jet fuels turned up
after falling in September.

     The index for materials for nondurable manufacturing was unchanged in
October.  Increases for plastic resins, and inedible fats and oils, were
offset by decreases for primary basic organic chemicals and fertilizer
materials.  Comparing the past two months, the stable October index for
nondurable materials follows a 0.4-percent increase in September.  This
deceleration was led by smaller price increases for paperboard, which rose
0.3 percent after gaining 4.3 percent a month ago.   Prices for primary
basic organic chemicals, fertilizer materials, industrial chemicals, and
lubricating oil base stocks turned down following increases in September.
By contrast, the index for plastic resins and materials turned up after
falling in the prior month.

     The index for materials for durable manufacturing fell 0.4 percent in
October following no change in September.  Prices for aluminum mill shapes
fell 0.7 percent after increasing 1.8 percent in the prior month.  The
indexes for plywood and primary aluminum ingot turned down after rising a
month ago.  Prices for steel mill products showed no change after
increasing in September.  By contrast, the index for copper and brass mill
shapes turned up 0.1 percent after dropping 2.7 percent in the prior month.
Prices for flat glass and gold also rose after falling in September.

     The index for materials and components for construction moved down 0.2
percent in October following a 0.1-percent decline a month ago.  Price
decreases for plywood, softwood lumber, millwork, nonferrous wire and
cable, and for air conditioning and refrigeration equipment outweighed
price increases for fabricated structural metal products and gypsum
products.

Crude goods

     The Producer Price Index for Crude Materials for Further Processing
advanced 4.0 percent in October, seasonally adjusted.  This rise can be
traced primarily to increasing prices for crude energy goods.  The index
for basic industrial materials also rose, while prices for crude foodstuffs
and feedstuffs showed no change.  The October advance for crude materials
for further processing follows a smaller 0.6-percent advance in September.
Key to this acceleration was a faster rate of increase for crude energy
materials.  Prices for basic industrial materials also rose after falling
last month.  The index for crude foodstuffs and feedstuffs remained
unchanged in October after declining in the previous month.  (See table B.)
                                    -5-
     
     The index for crude energy materials increased 10.7 percent in
October.  Leading this advance was a 17.5-percent rise in natural gas
prices.  The index for crude petroleum also rose this month.  The October
increase in crude energy materials follows a 2.6-percent rise in September.
The index for natural gas , which rose 17.5 percent following a 7.4-percent
advance one month ago, contributed most to this acceleration.  Crude
petroleum prices increased after falling in the prior month.  By contrast,
the index for coal declined 0.6 percent following a 0.6-percent advance in
the previous month.
     
     The index for basic industrial materials increased 0.3 percent in
October.  Leading this advance was a 5.7-percent rise in prices for
aluminum base scrap.  Rising prices for iron and steel scrap and leaf
tobacco also contributed to the rise.  The October increase in basic
industrial materials follows a 1.0-percent decrease in September.  A key
factor in this upturn was a 2.7-percent advance in prices for copper ores
following a 10.9-percent decline one month ago.  Prices for aluminum base
scrap, iron and steel scrap, gold ores, cattle hides, and raw cotton also
turned up after falling in the previous month.  By contrast, the index for
leaf tobacco advanced 4.0 percent following a 10.2-percent advance in
September.  Prices for softwood logs, bolts, and timber; copper base scrap;
and wastepaper fell more this month than last month.
     
     The index for crude foodstuffs and feedstuffs remained unchanged in
October.  Increasing prices for corn, fluid milk, unprocessed shellfish,
soybeans, fresh and dry vegetables, and fresh fruits and melons were offset
by decreasing prices for slaughter broilers and fryers, slaughter hogs, and
slaughter turkeys.  October's unchanged index for crude foodstuffs and
feedstuffs follows a 0.3-percent decline in September.  The index for
soybeans, which rose 4.1 percent following a 4.3-percent decline one month
ago, was key to this acceleration.  Prices for fluid milk, fresh and dry
vegetables, Louisiana rough rice, and slaughter cattle advanced after
falling last month.  The index for unprocessed shellfish increased after
showing no change in September.
     
Net output price indexes for mining, manufacturing, and other industries

Mining.  The Producer Price Index for the net output of total domestic
mining industries advanced 8.2 percent in October following a 2.0-percent
increase in September.  (Net output price indexes are not seasonally
adjusted.)  In October, prices for the oil and gas extraction industry
group turned up 11.1 percent after a 2.9 percent rise in the previous
month.  The index for the metal mining industry group advanced 1.2 percent,
following a 3.2 percent decrease one month ago.  Prices for the nonmetallic
minerals mining industry group rose 0.2 percent following a 0.1-percent
decline in the prior month.  Conversely, the index for the coal mining
industry group fell 0.2 percent following a 0.2-percent increase in the
previous month.  In October, the Producer Price Index for total domestic
mining industries stood at 88.7 (December 1984=100), 6.9 percent above its
year-ago level.

Manufacturing.  The Producer Price Index for the net output of total
domestic manufacturing industries rose 0.3 percent in October after showing
no change in September.  In October, prices for the transportation
equipment industry group rose 2.7 percent following a 0.8-percent decrease
in the prior month.  The index for nonmetallic mineral products also rose
after falling in September.  Prices for chemicals and allied products,
fabricated metal products, machinery (except electrical), and miscellaneous
manufactures industry groups advanced after showing no change in September.
The index for the printing and publishing industry group rose more than in
the previous month.  On the other hand, prices for tobacco manufactures
showed no change after rising in the previous month.  The indexes for food
and kindred products and lumber and wood products industry groups fell more
than a month ago.  Prices for the apparel, furniture and fixtures, leather
and leather products, primary metal industries, and electrical and
electronic machinery industry groups turned down after increasing in the
prior month.  In October, the Producer Price Index for the net output of
the total domestic manufacturing sector stood at 127.7 (December 1984=100),
0.4 percent below its year-ago level.
                                    -6-

Other.  Among other industries in October, the indexes for scheduled air
transportation, freight transportation arrangement, radio broadcasting,
cable and other pay television services, and passenger car rental (without
drivers) advanced following declines one month ago.  Prices for truck
rental and leasing (without drivers), nonscheduled air transportation, and
psychiatric hospitals rose after showing no change in the prior month.  The
indexes for water transportation of freight (not elsewhere classified),
skilled and intermediate care facilities, and legal services increased more
than in the previous month.  Prices for scrap and waste materials fell less
than one month earlier.

     By contrast, prices for railroads (line haul operating), airports and
airport services, travel agencies, and general medical and surgical
hospitals declined following advances one month ago.  Prices for deep sea
foreign transportation of freight and marine cargo handling fell more than
last month.  The indexes for local trucking with storage, farm product
warehousing and storage, and specialty hospitals, except psychiatric,
showed no change following advances in September.  Prices for hotels and
motels rose less than in the prior month.

                                   *****
            Producer Price Index data for November 1997 will be
          released on Friday, December 12, 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.


PPI Commodity Weight Allocations to Stage-of-Processing Indexes to be
Updated

Effective with the release of January 1998 data on February 18, 1998, the
Bureau of Labor Statistics will update the weight allocations used to
calculate the stage-of-processing (SOP) indexes, found in table 1 of the
press release and of the PPI Detailed Report, to more accurately reflect
recent marketing patterns.  While PPI weights will continue to be based on
shipment values from the 1992 economic census, the proportion of these
weights allocated to the various SOP categories within and, in some cases,
across the Finished, Intermediate, and Crude goods stages will change.  The
new allocations will be based primarily on data contained in the
Input/Output Accounts published by the Bureau of Economic Analysis.

It is important to note that the allocation update will not change the PPI
classification system, reference base, or aggregation structure.  It may,
however, result in significant shifts in the relative importance of
component series in the stage-of-processing indexes.  The allocation update
will not affect the industry SOP indexes found in tables 10 and 11 of the
PPI Detailed Report.

Relative importances as of December 1997, based on both the former and
revised weight allocations, will be available on February 18, 1998 on the
BLS ftp site at ftp://stats.bls.gov.  Choose the "pub" directory, the
"special.requests" directory, and the "ppi" directory.  The revised SOP
relative importances will be in the file, "sopnew.txt". The information may
also be requested from the Division of Industrial Prices and Price Indexes,
Section of Index Analysis, at 202-606-7705.  For further information on
this change, please contact Angelo Maggi on (202) 606-7729, or Scott Sager
on (202) 606-7700, ext. 211.

Table 1.  Producer Price Indexes and percent changes by stage of processing
 (1982=100)
 ____________________________________________________________________________________________________________________________________
                                                  |          |                       |Unadjusted     |
                                                  |          |                       |  percent      |Seasonally adjusted
                                                  | Relative |    Unadjusted index   |change to      |percent change from:
                     Grouping                     |importance|                       |Oct. 1997 from:|
                                                  |          |_______________________|_______________|_______________________________
                                                  |   Dec.   |       |       |       |       |       |       |         |
                                                  |           June   |Sept.  |Oct.   |  Oct. | Sept. |July to|Aug.  to |Sept. to
                                                  |   1996 1/|1997 2/|1997 2/|1997 2/|  1996 | 1997  |  Aug. |   Sept. |  Oct.
 _________________________________________________|__________|_______|_______|_______|_______|_______|_______|_________|____________
                                                  |
 Finished goods...................................|  100.000   131.6   131.8   132.4    -0.2    0.5      0.3      0.5     0.1
   Finished consumer goods........................|   76.423   130.0   130.5   130.8     -.3     .2       .4       .5      .2
     Finished consumer foods......................|   23.644   134.0   134.8   135.0    -1.2     .1       .3       .1      .4
       Crude......................................|    1.639   116.0   122.8   132.3    -2.9    7.7       .3      4.5     9.2
       Processed..................................|   22.005   135.4   135.6   135.2    -1.0    -.3       .3      -.1     -.3
     Finished consumer goods, excluding foods.....|   52.779   128.1   128.5   128.8     0       .2       .5       .7      .1
       Nondurable goods less foods................|   36.392   124.4   125.7   124.7      .2    -.8       .5       .9     0
       Durable goods..............................|   16.387   133.4   131.5   134.9     -.2    2.6       .3       .5      .1
   Capital equipment..............................|   23.577   138.1   137.1   138.7     -.1    1.2      0         .3     -.1
     Manufacturing industries.....................|    6.028   137.6   137.1   138.0      .4     .7      0         .1     0
     Nonmanufacturing industries..................|   17.549   138.2   137.0   138.8     -.4    1.3      0         .4     -.1
                                                  |
 Intermediate materials, supplies, and components.|  100.000   125.8   126.0   125.5     -.4    -.4       .1       .3     -.1
   Materials and components for manufacturing.....|   49.031   128.3   128.4   128.2     -.1    -.2      0         .1     -.1
     Materials for food manufacturing.............|    3.318   122.7   123.2   122.4    -5.3    -.6      0         .6     -.5
     Materials for nondurable manufacturing.......|   15.610   129.0   130.2   130.3      .5     .1       .2       .4     0
     Materials for durable manufacturing..........|   10.965   133.7   133.1   132.4     1.5    -.5      0        0       -.4
     Components for manufacturing.................|   19.138   126.4   126.0   126.0     -.5    0        -.2      -.1     0
   Materials and components for construction......|   12.691   147.0   146.7   146.4     1.5    -.2      -.1      -.1     -.2
   Processed fuels and lubricants.................|   13.665    89.8    90.9    88.7    -3.9   -2.4       .7      1.4      .5
     Manufacturing industries ....................|    5.415    92.2    93.5    91.3    -3.0   -2.4       .3      2.1      .2
     Nonmanufacturing industries..................|    8.250    88.3    89.2    87.0    -4.6   -2.5       .9       .8      .6
   Containers.....................................|    3.527   134.2   135.4   136.8     -.8    1.0       .1      1.0     1.0
   Supplies.......................................|   21.086   136.0   136.1   135.8     -.1    -.2      -.1       .3     -.2
     Manufacturing industries.....................|    7.535   139.1   139.6   140.2      .9     .4       .1       .1      .4
     Nonmanufacturing industries..................|   13.551   134.4   134.3   133.5     -.7    -.6      -.2       .4     -.6
       Feeds......................................|    1.607   133.4   131.7   122.2    -8.1   -7.2     -2.2      3.0    -7.4
       Other supplies.............................|   11.944   134.6   134.7   135.1      .4     .3       .1       .1      .3
                                                  |
 Crude materials for further processing...........|  100.000   107.1   108.2   111.6      .3    3.1       .7       .6     4.0
   Foodstuffs and feedstuffs......................|   38.004   111.3   111.1   109.4    -8.5   -1.5      -.1      -.3     0
   Nonfood materials..............................|   61.996   100.5   102.4   108.9     7.0    6.3      1.3      1.2     6.6
     Nonfood materials except fuel 3/.............|   36.095   100.8   101.0   102.9    -6.0    1.9      1.1     -1.3     2.3
       Manufacturing 3/...........................|   32.588    92.2    92.4    94.5    -6.7    2.3      1.3     -1.4     2.7
       Construction...............................|    3.507   202.3   201.7   199.9     1.4    -.9      -.1      -.4     -.8
     Crude fuel 4/................................|   25.901    90.4    95.1   108.9    37.7   14.5      1.7      6.0    14.5
       Manufacturing industries...................|    5.258    88.7    92.8   105.1    33.5   13.3      1.4      5.5    13.3
       Nonmanufacturing industries................|   20.643    92.0    96.9   111.3    38.8   14.9      1.8      6.1    14.9
                                                  |
                Special groupings                 |
                                                  |
 Finished goods, excluding foods..................|5/ 76.356   130.9   130.8   131.5     0       .5       .3       .6     0
 Intermediate materials less foods and feeds......|6/ 95.065   125.7   126.0   125.7     -.1    -.2       .2       .2      .1
 Intermediate foods and feeds.....................|6/  4.935   126.4   126.2   122.6    -6.2   -2.9      -.7      1.4    -2.8
 Crude materials less agricultural products 3/ 7/.|8/ 59.898    99.8   101.9   108.7     7.5    6.7      1.6      1.1     6.8
                                                  |
 Finished energy goods............................|5/ 14.720    83.6    85.2    83.5    -1.5   -2.0      1.4      1.5      .1
 Finished goods less energy.......................|5/ 85.280   139.9   139.7   140.8     -.1     .8       .1       .4      .1
 Finished consumer goods less energy..............|5/ 61.703   140.6   140.6   141.7     -.1     .8       .2       .3      .1
                                                  |
 Finished goods less foods and energy.............|5/ 61.636   142.2   141.6   143.1      .3    1.1       .1       .4     0
 Finished consumer goods less foods and energy....|5/ 38.059   144.8   144.4   145.9      .6    1.0       .1       .5      .1
 Consumer nondurable goods less foods and energy..|5/ 21.672   153.1   153.9   153.8     1.2    -.1       .1       .5     -.1
                                                  |
 Intermediate energy goods........................|6/ 13.796    89.5    90.6    88.4    -4.0   -2.4       .7      1.4      .5
 Intermediate materials less energy...............|6/ 86.204   133.7   133.8   133.6      .1    -.1      0         .1     -.1
 Intermediate materials less foods and energy.....|6/ 81.269   134.2   134.3   134.4      .6     .1       .1      0        .1
                                                  |
 Crude energy materials 3/........................|8/ 42.427    79.2    82.1    90.9     9.9   10.7      1.7      2.6    10.7
 Crude materials less energy......................|8/ 57.573   123.1   122.6   121.2    -5.0   -1.1       .2      -.5      .1
 Crude nonfood materials less energy 4/...........|8/ 19.569   157.4   156.1   155.6     2.2    -.3       .8     -1.0      .3
                                                  |
 ____________________________________________________________________________________________________________________________________
 
   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 June 1997 have been recalculated to incorporate               further processing, excluding crude
       late reports and corrections by respondents.  All indexes                     foodstuffs and feedstuffs, plant and
       are subject to revision four months after original publication.               animal fibers, oilseeds, and leaf tobacco."
                                                                                 8/  Percent of total crude materials.
Table 2.  Producer Price Indexes and percent changes for selected commodity groupings by stage of processing
 (1982=100 unless otherwise indicated)
 ____________________________________________________________________________________________________________________________________
            |                                                       |                       |Unadjusted     |
            |                                                       |                       | percent       |Seasonally adjusted
            |                                                       |   Unadjusted index    |change to      |percent change from:
  Commodity |                                                       |                       |Oct. 1997 from:|
    code    |                      Grouping                         |_______________________|_______________|________________________
            |                                                       |       |       |       |       |       |       |       |
            |                                                       |June   |Sept.  |Oct.   | Oct.  | Sept. |July to|Aug. to|Sept.to
            |                                                       |1997 1/|1997 1/|1997 1/| 1996  | 1997  |  Aug. |  Sept.|  Oct.
 ___________|_______________________________________________________|_______|_______|_______|_______|_______|_______|_______|________
            |                                                       |
            |FINISHED GOODS.........................................| 131.6   131.8   132.4    -0.2    0.5      0.3     0.5     0.1
            | FINISHED CONSUMER GOODS...............................| 130.0   130.5   130.8     -.3     .2       .4      .5      .2
            |  FINISHED CONSUMER FOODS..............................| 134.0   134.8   135.0    -1.2     .1       .3      .1      .4
            |                                                       |
 01-11      |   Fresh fruits and melons 2/..........................|  92.6    92.2    96.1   -25.0    4.2     -1.5    13.7     4.2
 01-13      |   Fresh and dry vegetables 2/.........................| 108.8   125.0   146.0    28.3   16.8     17.5    -5.1    16.8
 01-71-07   |   Eggs for fresh use (Dec. 1991=100) 2/...............|  79.4   100.1    90.1   -12.0  -10.0     -8.9    13.8   -10.0
 02-11      |   Bakery products 2/..................................| 173.7   174.4   174.6     1.0     .1      0        .3      .1
 02-13      |   Milled rice 2/......................................| 127.8   124.1   126.7    -1.8    2.1      -.7    -1.2     2.1
 02-14-02   |   Pasta products (June 1985=100) 2/...................| 126.6   123.4   123.5    -4.0     .1      0       0        .1
 02-21-01   |   Beef and veal.......................................| 102.2   103.8   103.1    -1.8    -.7      3.3     -.6    -1.0
 02-21-04   |   Pork................................................| 129.3   123.2   115.2   -10.6   -6.5     -1.7    -1.8    -6.4
 02-22-03   |   Processed young chickens............................| 118.1   120.9   117.1    -7.4   -3.1      -.1    -1.7    -1.3
 02-22-06   |   Processed turkeys 2/................................| 104.0   102.4   102.4    -2.1    0       -2.5     2.1     0
 02-23      |   Finfish and shellfish...............................| 172.9   169.5   188.1    10.9   11.0     -1.3     2.7     7.4
 02-3       |   Dairy products......................................| 125.3   127.4   130.3    -7.4    2.3       .8      .7     1.7
 02-4       |   Processed fruits and vegetables 2/..................| 126.5   125.4   125.6    -2.1     .2      -.5     -.5      .2
 02-55      |   Confectionery end products 2/.......................| 168.4   168.3   167.9      .2    -.2      -.1     -.2     -.2
 02-62      |   Soft drinks.........................................| 133.3   132.7   132.8    -1.2     .1      -.2     -.2     -.2
 02-63-01   |   Roasted coffee 2/...................................| 166.8   165.1   160.6    25.5   -2.7       .7    -1.1    -2.7
 02-76      |   Shortening and cooking oils 2/......................| 137.2   136.6   142.4     3.9    4.2     -2.0    -1.4     4.2
            |                                                       |
            |  FINISHED CONSUMER GOODS EXCLUDING FOODS..............| 128.1   128.5   128.8     0       .2       .5      .7      .1
            |                                                       |
 02-61      |   Alcoholic beverages.................................| 135.4   134.2   133.9     -.7    -.2       .4    -1.0     -.2
 03-81-01   |   Women's apparel 2/..................................| 120.4   120.4   119.3    -1.1    -.9       .2     0       -.9
 03-81-02   |   Men's and boys' apparel.............................| 132.7   132.6   132.9      .5     .2       .1     -.1      .2
 03-81-03   |   Girls', children's, and infants' apparel 2/.........| 122.6   123.1   122.6     -.7    -.4     -1.0      .1     -.4
 03-82      |   Textile housefurnishings 2/.........................| 122.3   122.6   122.6    -1.0    0        0        .3     0
 04-3       |   Footwear............................................| 142.2   145.6   144.4     1.5    -.8       .5      .7     -.8
 05-41      |   Residential electric power (Dec. 1990=100)..........| 116.5   117.0   114.0      .4   -2.6     -1.0     1.3      .5
 05-51      |   Residential gas (Dec. 1990=100).....................| 112.5   115.1   118.2     8.0    2.7       .7     1.2     2.9
 05-71      |   Gasoline............................................|  71.2    75.2    70.5    -4.9   -6.3      5.9     2.2    -3.6
 05-73-02-01|   Fuel oil No. 2......................................|  60.9    60.2    66.0   -18.1    9.6      1.8    -8.0     2.1
 06-35      |   Pharmaceutical preps, ethical (Prescription)........| 273.2   273.5   275.4     3.3     .7      0       0        .9
 06-36      |   Pharmaceutical preps,proprietary (Over-counter).....| 184.2   184.4   184.4      .2    0       -2.1     0       0
 06-71      |   Soaps and synthetic detergents 2/...................| 126.3   126.5   126.9     1.4     .3      0        .2      .3
 06-75      |   Cosmetics and other toilet preparations 2/..........| 130.7   130.0   130.3      .2     .2      -.6     -.1      .2
 07-12      |   Tires, tubes, tread, etc 2/.........................|  95.1    95.2    95.4     -.8     .2      -.1      .3      .2
 09-15-01   |   Sanitary papers and health products 2/..............| 146.9   147.6   146.3    -1.5    -.9       .8     -.1     -.9
 09-31-01   |   Newspaper circulation...............................| 201.7   202.7   202.2      .2    -.2       .2     0       -.9
 09-32-01   |   Periodical circulation..............................| 187.3   188.2   189.4     3.8     .6       .1     1.1     -.2
 09-33      |   Book publishing 2/..................................| 197.8   198.3   200.5     3.0    1.1       .6     -.6     1.1
 12-1       |   Household furniture 2/..............................| 146.1   146.5   146.5     1.1    0        0        .1     0
 12-3       |   Floor coverings 2/..................................| 126.9   127.4   127.9     -.2     .4      1.7     -.5      .4
 12-4       |   Household appliances 2/.............................| 110.4   109.6   109.4    -2.7    -.2      -.3      .1     -.2
 12-5       |   Home electronic equipment 2/........................|  78.3    78.4    78.3     -.5    -.1      0        .1     -.1
 12-62      |   Household glassware 2/..............................| 161.8   161.9   161.9     2.5    0        0       0       0
 12-64      |   Household flatware 2/...............................| 138.6   138.4   138.4      .4    0         .4     0       0
 12-66      |   Lawn and garden equip., ex. tractors 2/.............| 132.9   130.5   130.6    -1.5     .1       .2    -1.4      .1
 14-11-01   |   Passenger cars......................................| 132.7   127.6   137.0     -.2    7.4       .5     1.4      .7
 15-11      |   Toys, games, and children's vehicles................| 125.2   125.0   125.2     -.1     .2       .2     0        .3
 15-12      |   Sporting and athletic goods 2/......................| 124.7   125.8   125.8     1.7    0         .4      .2     0
 15-2       |   Tobacco products 2/.................................| 248.5   255.7   255.7     6.9    0        -.2     3.2     0
 15-5       |   Mobile homes 2/.....................................| 152.2   152.6   152.6     1.4    0         .3      .3     0
 15-94-02   |   Jewelry, platinum, & karat gold 2/..................| 130.7   130.9   131.6     1.5     .5      1.9      .4      .5
 15-94-04   |   Costume jewelry and novelties 2/....................| 139.9   140.9   141.0     1.7     .1       .5     -.1      .1
            |                                                       |
            | CAPITAL EQUIPMENT.....................................| 138.1   137.1   138.7     -.1    1.2      0        .3     -.1
            |                                                       |
 11-1       |   Agricultural machinery and equipment 2/.............| 148.5   147.8   148.3      .6     .3      0       -.1      .3
 11-2       |   Construction machinery and equipment................| 142.0   142.2   142.9     1.9     .5       .1      .1      .6
 11-37      |   Metal cutting machine tools 2/......................| 155.7   157.3   157.3     2.1    0         .4      .1     0
 11-38      |   Metal forming machine tools 2/......................| 154.1   155.1   155.4     3.4     .2       .2      .4      .2
 11-39      |   Tools, dies, jigs, fixtures, and ind. molds 2/......| 138.2   138.2   138.7     1.6     .4      -.1     0        .4
 11-41      |   Pumps, compressors, and equipment...................| 146.8   147.1   147.4     2.4     .2       .1      .1      .2
 11-44      |   Industrial material handling equipment 2/...........| 129.8   129.9   130.1     1.7     .2       .1     -.1      .2
 11-51      |   Electronic computers (Dec. 1990=100) 2/.............|  32.9    31.1    31.1   -22.4    0       -2.8    -2.2     0
 11-62      |   Textile machinery 2/................................| 151.9   152.5   152.4     2.2    -.1      0       0       -.1
 11-64      |   Paper industries machinery (June 1982=100)..........| 157.2   157.8   157.9     2.6     .1      -.6      .3      .3
 11-65      |   Printing trades machinery 2/........................| 138.5   138.8   138.7      .6    -.1      -.7     -.4     -.1
 11-74      |   Transformers and power regulators 2/................| 129.9   130.1   129.5      .5    -.5      -.3     -.1     -.5
 11-76      |   Communication & related equip. (Dec. 1985=100) 2/...| 113.6   114.3   114.2      .9    -.1      -.3     0       -.1
 11-79-05   |   X-ray and electromedical equipment 2/...............| 107.2   107.2   107.1    -1.9    -.1      -.1     -.5     -.1
 11-91      |   Oil field and gas field machinery 2/................| 122.7   122.8   123.6     4.3     .7       .2     0        .7
 11-92      |   Mining machinery and equipment 2/...................| 140.1   141.0   141.1     1.0     .1       .1      .3      .1
 11-93      |   Office and store machines and equipment 2/..........| 112.5   112.6   112.6      .8    0         .1     0       0
 12-2       |   Commercial furniture 2/.............................| 154.2   154.8   154.4      .9    -.3      0        .4     -.3
 14-11-05   |   Light motor trucks..................................| 158.7   152.9   161.7     -.9    5.8      -.1     1.5     -.7
 14-11-06   |   Heavy motor trucks..................................| 140.6   140.7   139.8    -1.8    -.6      -.3      .1    -1.4
 14-14      |   Truck trailers 2/...................................| 130.7   129.7   129.7     -.2    0        0       -.1     0
 14-21-02   |   Civilian aircraft (Dec. 1985=100)...................| 150.4   150.2   150.1      .9    -.1       .1      .2     -.2
 14-31      |   Ships (Dec. 1985=100) 2/............................| 141.3   144.8   144.5     -.1    -.2      1.2      .1     -.2
 14-4       |   Railroad equipment..................................| 134.3   134.2   134.8    -1.6     .4       .2     1.4      .7
            |                                                       |
            |INTERMEDIATE MATERIALS, SUPPLIES, AND COMPONENTS.......| 125.8   126.0   125.5     -.4    -.4       .1      .3     -.1
            |                                                       |
            | INTERMEDIATE FOODS AND FEEDS..........................| 126.4   126.2   122.6    -6.2   -2.9      -.7     1.4    -2.8
            |                                                       |
 02-12-03   |   Flour 2/............................................| 120.2   117.8   115.6   -10.5   -1.9      1.1     2.1    -1.9
 02-53      |   Refined sugar 2/....................................| 124.1   123.6   121.5    -2.1   -1.7      1.1     1.1    -1.7
 02-54      |   Confectionery materials.............................| 107.9   109.9    96.6   -12.6  -12.1      -.8     2.6   -10.8
 02-72      |   Crude vegetable oils 2/.............................| 115.1   112.5   119.8     7.6    6.5     -3.2     1.7     6.5
 02-9       |   Prepared animal feeds 2/............................| 136.6   135.4   126.8    -6.3   -6.4     -2.1     2.8    -6.4
            |                                                       |
            | INTERMEDIATE MATERIALS LESS FOODS AND FEEDS...........| 125.7   126.0   125.7     -.1    -.2       .2      .2      .1
            |                                                       |
 03-1       |   Synthetic fibers 2/.................................| 111.0   110.4   110.6    -1.3     .2       .1     -.4      .2
 03-2       |   Processed yarns and threads 2/......................| 113.7   113.7   113.9     -.9     .2      -.2     -.1      .2
 03-3       |   Gray fabrics 2/.....................................| 121.9   122.3   122.1      .4    -.2      -.1      .3     -.2
 03-4       |   Finished fabrics....................................| 123.9   124.1   124.1      .3    0        -.1      .5     -.2
 03-83-03   |   Industrial textile products 2/......................| 127.9   127.9   128.1     0       .2      -.2      .1      .2
 04-2       |   Leather.............................................| 180.2   179.6   181.3     2.2     .9      -.6      .4     1.3
 05-32      |   Liquefied petroleum gas 2/..........................|  76.9    78.8    82.9   -13.1    5.2      2.5     4.9     5.2
 ____________________________________________________________________________________________________________________________________
 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 |                                                       |                       |Oct. 1997 from:|
    code    |                      Grouping                         |_______________________|_______________|________________________
            |                                                       |       |       |       |       |       |       |       |
            |                                                       |June   |Sept.  |Oct.   | Oct.  | Sept. |July to|Aug. to|Sept.to
            |                                                       |1997 1/|1997 1/|1997 1/| 1996  | 1997  |  Aug. |  Sept.|  Oct.
 ___________|_______________________________________________________|_______|_______|_______|_______|_______|_______|_______|________
            |                                                       |
            | INTERMEDIATE MATERIALS LESS FOODS AND FEEDS           |
            |   -Continued..........................................|
 05-42      |   Commercial electric power...........................| 138.6   139.5   131.4     0.1   -5.8     -0.9     2.3     0.2
 05-43      |   Industrial electric power...........................| 135.1   136.1   129.9    -1.0   -4.6      -.8     2.0     -.7
 05-52      |   Commercial natural gas (Dec. 1990=100)..............| 103.3   106.1   110.3    11.0    4.0       .1     2.8     4.2
 05-53      |   Industrial natural gas (Dec. 1990=100)..............| 100.5   102.9   110.9    15.4    7.8      -.4     4.9     7.9
 05-54      |   Natural gas to electric utilities (Dec. 1990=100)...|  90.2    85.4    89.2     9.0    4.4     -3.3     -.8     7.6
 05-72-03   |   Jet fuels...........................................|  59.5    58.4    62.0   -17.9    6.2      1.8    -5.9     1.7
 05-73-03   |   No. 2 Diesel fuel...................................|  61.0    61.4    64.9   -19.1    5.7      4.3    -4.8     2.0
 05-74      |   Residual fuel 2/....................................|  57.0    58.0    58.3    -5.5     .5     -1.8     8.2      .5
 06-1       |   Industrial chemicals 2/.............................| 125.2   127.3   127.2      .2    -.1       .3      .2     -.1
 06-21      |   Prepared paint......................................| 152.4   152.4   152.9     2.4     .3      0        .4      .4
 06-22      |   Paint materials 2/..................................| 141.7   142.5   142.3     2.0    -.1      1.8     -.3     -.1
 06-31      |   Medicinal and botanical chemicals 2/................| 133.4   133.2   135.0     4.9    1.4      0       -.1     1.4
 06-4       |   Fats and oils, inedible 2/..........................| 127.4   125.0   135.1    -6.1    8.1     -2.3     2.8     8.1
 06-51      |   Mixed fertilizers...................................| 113.9   113.8   113.7     0      -.1       .4      .6      .7
 06-52-01   |   Nitrogenates........................................| 134.6   128.1   128.1    -1.3    0         .7    -1.2    -3.2
 06-52-02   |   Phosphates 2/.......................................| 109.5   111.9   111.2     -.5    -.6       .9     1.8     -.6
 06-53      |   Other agricultural chemicals........................| 147.1   146.5   147.5      .5     .7      1.2     -.2      .7
 06-6       |   Plastic resins and materials 2/.....................| 139.6   136.0   136.7     -.9     .5     -1.7     -.7      .5
 07-11-02   |   Synthetic rubber 2/.................................| 119.4   118.7   118.5    -2.5    -.2       .3     0       -.2
 07-21      |   Plastic construction products 2/....................| 128.0   127.8   127.7    -2.1    -.1       .2     -.6     -.1
 07-22      |   Unsupported plastic film, sheet, & other shapes.....| 131.8   132.1   131.7     -.6    -.3       .5    -1.1     -.6
 07-26      |   Plastic parts and components for manufacturing 2/...| 117.1   117.0   117.0     -.3    0        0       -.2     0
 08-11      |   Softwood lumber 2/..................................| 211.5   201.5   193.4     -.2   -4.0     -1.7    -3.1    -4.0
 08-12      |   Hardwood lumber 2/..................................| 173.8   176.3   177.4     8.0     .6       .1      .4      .6
 08-2       |   Millwork 2/.........................................| 171.4   171.3   171.0     1.4    -.2      -.1     0       -.2
 08-3       |   Plywood 2/..........................................| 162.7   162.4   156.0    -2.6   -3.9      -.7      .6    -3.9
 09-11      |   Woodpulp 2/.........................................| 125.5   132.9   133.2     3.9     .2      3.0      .2      .2
 09-13      |   Paper 2/............................................| 143.3   145.5   145.9     2.5     .3       .2      .6      .3
 09-14      |   Paperboard..........................................| 137.5   149.8   150.5     2.7     .5      2.8     4.3      .3
 09-15-03   |   Paper boxes and containers 2/.......................| 141.4   143.7   146.1    -1.3    1.7       .1     2.1     1.7
 09-2       |   Building paper and board 2/.........................| 128.7   128.5   127.1    -8.4   -1.1      -.5      .4    -1.1
 09-37      |   Commercial printing (June 1982=100) 2/..............| 148.0   148.7   150.8     1.8    1.4      0        .1     1.4
 10-15      |   Foundry and forge shop products.....................| 134.3   134.1   134.2      .9     .1      -.1      .1      .1
 10-17      |   Steel mill products 2/..............................| 116.3   116.9   116.9      .8    0         .1      .3     0
 10-22      |   Primary nonferrous metals 2/........................| 131.6   126.6   122.6     7.2   -3.2      1.6     -.5    -3.2
 10-25-01   |   Aluminum mill shapes 2/.............................| 148.0   150.3   149.3     6.4    -.7       .2     1.8     -.7
 10-25-02   |   Copper and brass mill shapes 2/.....................| 184.8   173.8   174.0     2.6     .1     -1.8    -2.7      .1
 10-26      |   Nonferrous wire and cable 2/........................| 150.2   148.2   147.3     1.2    -.6     -1.1     -.1     -.6
 10-3       |   Metal containers 2/.................................| 107.8   107.8   107.8     -.6    0        -.2      .2     0
 10-4       |   Hardware............................................| 145.7   146.3   146.4     1.2     .1       .3      .2      .2
 10-5       |   Plumbing fixtures and brass fittings................| 175.1   174.9   175.2     2.1     .2      0        .3      .2
 10-6       |   Heating equipment...................................| 152.1   152.9   153.0      .8     .1      0        .1      .1
 10-7       |   Fabricated structural metal products................| 140.4   140.7   141.1     1.8     .3       .1     -.1      .4
 10-88      |   Fabricated ferrous wire products (June 1982=100) 2/.| 127.2   128.7   129.3     1.9     .5       .7      .2      .5
 10-89      |   Other misc. metal products 2/.......................| 126.2   126.2   126.3      .2     .1      0       0        .1
 11-45      |   Mechanical power transmission equipment.............| 154.8   154.8   155.0     2.2     .1       .2      .2      .4
 11-48      |   Air conditioning and refrigeration equipment........| 132.5   133.1   132.9      .2    -.2       .2      .5     -.1
 11-49-02   |   Metal valves, ex.fluid power (Dec. 1982=100) 2/.....| 153.5   153.7   154.0     2.5     .2      -.1     -.2      .2
 11-49-05   |   Ball and roller bearings............................| 163.1   163.4   162.7     2.5    -.4       .2      .1     -.9
 11-71      |   Wiring devices......................................| 154.4   154.6   154.4     1.8    -.1      -.3      .1     0
 11-73      |   Motors, generators, motor generator sets............| 144.8   144.5   145.1      .3     .4       .3     -.1      .5
 11-75      |   Switchgear, switchboard, etc., equipment............| 145.7   145.4   145.8     2.2     .3      -.2      .1      .3
 11-78      |   Electronic components and accessories 2/............| 104.5   102.9   102.7    -4.3    -.2     -1.1     -.7     -.2
 11-94      |   Internal combustion engines.........................| 139.8   140.0   140.1      .5     .1      -.1      .1      .2
 11-95      |   Machine shop products 2/............................| 135.2   135.3   135.3      .7    0        0       0       0
 13-11      |   Flat glass 2/.......................................| 108.1   107.5   108.4     -.7     .8      -.4     -.2      .8
 13-22      |   Cement..............................................| 140.3   140.3   140.4     2.9     .1       .5      .2      .4
 13-3       |   Concrete products...................................| 135.8   136.0   136.4     1.9     .3      -.1      .1      .4
 13-6       |   Asphalt felts and coatings 2/.......................| 100.6   100.2    99.3     -.8    -.9       .1     -.6     -.9
 13-7       |   Gypsum products 2/..................................| 172.0   169.7   173.8     7.2    2.4      -.2      .7     2.4
 13-8       |   Glass containers 2/.................................| 125.5   125.7   125.7    -1.3    0        0       -.2     0
 14-12      |   Motor vehicle parts 2/..............................| 115.3   114.8   114.9    -1.1     .1      -.6      .1      .1
 14-23      |   Aircraft engines & engine parts (Dec. 1985=100).....| 135.9   135.3   135.3      .4    0        -.2      .2     0
 14-25      |   Aircraft parts & aux.equip.,nec (June 1985=100) 2/..| 141.5   140.1   139.9      .4    -.1       .1      .1     -.1
 15-42      |   Photographic supplies 2/............................| 129.9   129.9   129.9      .2    0        2.0     0       0
 15-6       |   Medical/surgical/personal aid devices...............| 143.3   142.8   143.0      .4     .1       .4     -.4      .4
            |                                                       |
            | CRUDE MATERIALS FOR FURTHER PROCESSING................| 107.1   108.2   111.6      .3    3.1       .7      .6     4.0
            |                                                       |
            |  CRUDE FOODSTUFFS AND FEEDSTUFFS......................| 111.3   111.1   109.4    -8.5   -1.5      -.1     -.3     0
            |                                                       |
 01-21      |   Wheat 2/............................................| 110.1   104.4   102.2   -13.8   -2.1      4.6     1.2    -2.1
 01-22-02-05|   Corn................................................| 110.4   106.2   109.5    -6.6    3.1      3.8     4.4     4.0
 01-31      |   Slaughter cattle....................................|  94.4    98.6    97.4    -4.4   -1.2      -.3     -.3      .3
 01-32      |   Slaughter hogs......................................|  95.6    83.6    76.9   -16.6   -8.0     -7.9    -3.3    -5.5
 01-41-02   |   Slaughter broilers/fryers...........................| 138.4   147.9   125.4   -17.0  -15.2      1.0    -6.8    -8.4
 01-42      |   Slaughter turkeys...................................| 119.4   116.5   111.5   -12.6   -4.3     -3.7    -6.5    -9.6
 01-6       |   Fluid milk..........................................|  91.0    95.3    98.4   -15.8    3.3      1.6     -.1     2.4
 01-83-01-31|   Soybeans............................................| 140.0   120.6   119.1     1.3   -1.2     -5.0    -4.3     4.1
 02-52-01-01|   Cane sugar,raw 2/...................................| 115.4   118.3   118.3    -1.1    0         .9     -.3     0
 
            |                                                       |
            |  CRUDE NONFOOD MATERIALS..............................| 100.5   102.4   108.9     7.0    6.3      1.3     1.2     6.6
            |                                                       |
 01-51-01-01|   Raw cotton..........................................| 116.8   117.6   116.0    -3.6   -1.4      4.6     -.1     1.2
 01-92-01-01|   Leaf tobacco 2/.....................................|   (3)   101.4   105.5    -6.3    4.0      (3)    10.2     4.0
 04-11      |   Cattle hides 2/.....................................| 198.8   180.3   183.0   -10.6    1.5      3.3    -3.1     1.5
 05-1       |   Coal 2/.............................................|  96.9    95.6    95.0     1.8    -.6      2.4      .6     -.6
 05-31      |   Natural gas 2/......................................|  88.7    94.5   111.0    47.6   17.5      2.4     7.4    17.5
 05-61      |   Crude petroleum 2/..................................|  51.8    53.3    57.3   -20.4    7.5      0      -2.9     7.5
 08-5       |   Logs, timber, etc. 2/...............................| 215.2   215.7   211.5     1.3   -1.9      -.3     -.6    -1.9
 09-12      |   Wastepaper 2/.......................................| 154.6   183.7   170.1    16.3   -7.4     18.5    -4.9    -7.4
 10-11      |   Iron ore 2/.........................................|  95.2    95.2    95.2    -1.6    0        0       0       0
 10-12      |   Iron and steel scrap 2/.............................| 185.1   188.7   191.8     4.6    1.6      1.8    -2.0     1.6
 10-21      |   Nonferrous metal ores (Dec. 1983=100) 2/............|  87.0    79.6    80.9    -2.8    1.6      -.2    -4.4     1.6
 10-23-01   |   Copper base scrap 2/................................| 174.0   153.9   146.3    -3.6   -4.9     -2.5    -1.7    -4.9
 10-23-02   |   Aluminum base scrap.................................| 196.8   193.0   194.7    21.7     .9      2.5    -2.6     5.7
 13-21      |   Construction sand, gravel, and crushed stone........| 148.6   148.7   148.8     1.8     .1       .4     0        .3
 ____________________________________________________________________________________________________________________________________
 
 1/  The indexes for June 1997 have been recalculated                            2/  Not seasonally adjusted.
     to incorporate late reports and corrections by respondents.                 3/  Not available.
     All indexes are subject to revision four months after original
     publication.
 
 
 
 
 
Table 3.  Producer Price Indexes for selected commodity groupings
 (1982=100 unless otherwise indicated)
 _______________________________________________________________________________________________
          |                                                |                                   |
          |                                                |         Unadjusted index 1/       |
 Commodity|                                                |___________________________________|
   code   |                    Grouping                    | June 1997 |Sept. 1997 | Oct. 1997 |
 _________|________________________________________________|___________|___________|___________|
          |                                                |           |           |           |
          | Finished Goods (1967=100)......................|   369.5   |   369.9   |   371.4   |
          | All commodities................................|   127.2   |   127.5   |   127.8   |
          |                                                |           |           |           |
          |                                                |           |           |           |
          |            MAJOR COMMODITY GROUPS              |           |           |           |
          |                                                |           |           |           |
          | Farm products and processed foods and feeds....|   126.8   |   126.7   |   125.8   |
 01       |   Farm products................................|   111.6   |   111.5   |   110.4   |
 02       |   Processed foods and feeds....................|   134.3   |   134.2   |   133.5   |
          |                                                |           |           |           |
          | Industrial commodities.........................|   127.2   |   127.6   |   128.1   |
 03       |   Textile products and apparel.................|   122.6   |   122.6   |   122.5   |
 04       |   Hides, skins, leather, and related products..|   153.6   |   152.1   |   152.5   |
 05       |   Fuels and related products and power 2/......|    84.5   |    86.2   |    86.7   |
 06       |   Chemicals and allied products 2/.............|   143.4   |   143.7   |   144.0   |
 07       |   Rubber and plastic products..................|   123.2   |   123.3   |   123.2   |
 08       |   Lumber and wood products.....................|   185.4   |   183.7   |   180.8   |
 09       |   Pulp, paper, and allied products.............|   166.4   |   168.7   |   169.5   |
 10       |   Metals and metal products....................|   132.5   |   132.0   |   131.9   |
 11       |   Machinery and equipment......................|   125.9   |   125.6   |   125.6   |
 12       |   Furniture and household durables.............|   130.9   |   130.9   |   130.9   |
 13       |   Nonmetallic mineral products.................|   133.4   |   133.3   |   133.6   |
 14       |   Transportation equipment.....................|   141.4   |   139.3   |   142.5   |
 15       |   Miscellaneous products.......................|   150.9   |   152.4   |   152.3   |
          |                                                |           |           |           |
          | Industrial commodities less fuels and related  |           |           |           |
          |   products and power...........................|   139.1   |   138.9   |   139.5   |
          |                                                |           |           |           |
          |                                                |           |           |           |
          |             OTHER COMMODITY GROUPINGS          |           |           |           |
          |                                                |           |           |           |
 01-1     | Fruits and melons, fresh and dry vegetables,   |           |           |           |
          |   and tree nuts................................|   105.8   |   112.0   |   122.7   |
 01-2     | Grains.........................................|   112.4   |   107.2   |   109.1   |
 01-3     | Slaughter livestock............................|    96.2   |    95.8   |    93.0   |
 01-4     | Slaughter poultry..............................|   133.4   |   139.9   |   121.7   |
 01-5     | Plant and animal fibers........................|   117.5   |   118.3   |   116.8   |
 01-7     | Chicken eggs...................................|    97.4   |   120.0   |   111.6   |
 01-8     | Hay, hayseeds, and oilseeds....................|   161.5   |   148.8   |   142.5   |
 01-83    | Oilseeds.......................................|   149.8   |   130.2   |   129.5   |
 01-9     | Other farm products............................|  'N.A.'   |   151.2   |   157.4   |
 02-1     | Cereal and bakery products.....................|   158.3   |   157.9   |   157.9   |
 02-2     | Meats, poultry, and fish.......................|   119.3   |   118.9   |   117.9   |
 02-22    | Processed poultry..............................|   117.3   |   119.0   |   117.0   |
 02-5     | Sugar and confectionery........................|   138.1   |   138.6   |   135.0   |
 02-6     | Beverages and beverage materials...............|   139.3   |   138.4   |   137.8   |
 02-63    | Packaged beverage materials....................|   159.5   |   158.1   |   154.4   |
 02-7     | Fats and oils..................................|   129.2   |   129.4   |   135.2   |
 03-81    | Apparel........................................|   125.6   |   125.6   |   125.3   |
 04-4     | Other leather and related products.............|   143.8   |   143.8   |   143.9   |
 05-3     | Gas fuels 2/...................................|    84.5   |    89.2   |   102.3   |
 05-4     | Electric power.................................|   136.5   |   137.3   |   131.7   |
 05-7     | Refined petroleum products.....................|    66.3   |    68.4   |    67.0   |
 06-3     | Drugs and pharmaceuticals......................|   218.6   |   219.0   |   220.1   |
 06-5     | Agricultural chemicals and products............|   132.7   |   131.8   |   131.9   |
 06-7     | Other chemicals and allied products............|   133.4   |   133.5   |   133.7   |
 07-1     | Rubber and rubber products.....................|   115.8   |   115.7   |   115.8   |
 07-11    | Rubber, except natural rubber..................|   118.7   |   118.1   |   117.8   |
 07-13    | Miscellaneous rubber products..................|   138.0   |   137.7   |   138.0   |
 07-2     | Plastic products...............................|   129.9   |   130.1   |   130.0   |
 08-1     | Lumber.........................................|   197.9   |   191.8   |   186.5   |
 09-1     | Pulp, paper, and products, excluding building  |           |           |           |
          |   paper and board..............................|   142.5   |   146.3   |   146.7   |
 09-15    | Converted paper and paperboard products........|   146.8   |   148.2   |   149.1   |
 10-1     | Iron and steel.................................|   126.1   |   126.8   |   127.1   |
 10-2     | Nonferrous metals..............................|   139.7   |   136.5   |   135.4   |
 10-25    | Nonferrous mill shapes.........................|   146.6   |   146.1   |   145.3   |
 11-3     | Metalworking machinery and equipment...........|   145.4   |   145.7   |   146.0   |
 11-4     | General purpose machinery and equipment........|   145.0   |   145.4   |   145.5   |
 11-6     | Special industry machinery.....................|   156.5   |   157.1   |   157.1   |
 11-7     | Electrical machinery and equipment.............|   122.4   |   122.0   |   121.9   |
 11-9     | Miscellaneous machinery and equipment..........|   130.7   |   131.0   |   131.1   |
 12-6     | Other household durable goods..................|   150.2   |   149.2   |   149.3   |
 13-2     | Concrete ingredients...........................|   143.0   |   143.1   |   143.2   |
 14-1     | Motor vehicles and equipment...................|   132.3   |   129.3   |   134.3   |
 15-1     | Toys, sporting goods, small arms, etc..........|   131.3   |   132.1   |   132.1   |
 15-4     | Photographic equipment and supplies............|   118.0   |   119.8   |   118.1   |
 15-9     | Other miscellaneous products...................|   133.5   |   133.7   |   133.8   |
 __________________________________________________________|___________|___________|___________|
 
 1/  Data for June 1997 have been revised to reflect the availability of late reports and
     corrections by respondents.  All data are subject to revision 4 months after
     original publication.
 
 2/  Prices of some items in this grouping are lagged 1 month.
 
Table 4.  Producer price indexes for the net output of major industry groups, not seasonally adjusted
 ____________________________________________________________________________________________________________________
                   |                                              |     |         Index         |  Percent change
   Industry        |                Industry 1/                   |Index|_______________________|to_Oct._1997_from:__
     code          |                                              |base |       |       |       |        |
                   |                                              |     |June   |Sep.   |Oct.   |  Oct.  |  Sep.
                   |                                              |     |1997 2/|1997 2/|1997 2/|  1996  |  1997
 __________________|______________________________________________|_____|_______|_______|_______|________|___________
                   |                                              |     |
                   |Total mining industries...................... |12/84|  79.9    82.0    88.7     6.9     8.2
        10         | Metal mining................................ |12/84|  89.4    83.7    84.7    -2.2     1.2
        12         | Coal mining................................. |12/85|  92.6    91.6    91.4     1.0     -.2
        13         | Oil and gas extraction...................... |12/85|  78.9    82.3    91.4     9.2    11.1
        14         | Mining and quarrying of non-metallic         |     |
                   |  minerals, except fuels..................... |12/84| 128.9   129.2   129.4     1.6      .2
                   |                                              |     |
                   |Total manufacturing industries............... |12/84| 127.2   127.3   127.7     -.4      .3
        20         | Food and kindred products................... |12/84| 128.3   128.3   127.6    -1.7     -.5
        21         | Tobacco manufactures........................ |12/84| 209.6   218.6   218.7     8.8     0
        22         | Textile mill products....................... |12/84| 118.6   118.9   118.9      .3     0
        23         | Apparel and other finished products made     |     |
                   |  from fabrics and similar materials......... |12/84| 123.4   123.5   122.9     -.2     -.5
        24         | Lumber and wood products, except furniture.. |12/84| 159.8   158.8   157.0     1.6    -1.1
        25         | Furniture and fixtures...................... |12/84| 138.2   138.6   138.4      .9     -.1
        26         | Paper and allied products................... |12/84| 131.7   134.2   134.9     0        .5
        27         | Printing, publishing, and allied industries. |12/84| 168.4   169.1   170.3     2.3      .7
        28         | Chemicals and allied products............... |12/84| 147.0   147.0   147.4      .4      .3
        29         | Petroleum refining and related products..... |12/84|  83.6    86.1    84.7    -7.9    -1.6
        30         | Rubber and miscellaneous plastic products... |12/84| 122.9   122.9   122.9     -.2     0
        31         | Leather and leather products................ |12/84| 136.2   137.5   137.4     1.7     -.1
        32         | Stone, clay, glass, and concrete products... |12/84| 127.4   127.3   127.8     1.3      .4
        33         | Primary metal industries.................... |12/84| 125.4   125.2   124.9     1.8     -.2
        34         | Fabricated metal products, except machinery  |     |
                   |  and transportation equipment............... |12/84| 127.5   127.9   128.1     1.3      .2
        35         | Machinery, except electrical................ |12/84| 118.3   118.1   118.2     -.6      .1
        36         | Electrical and electronic machinery,         |     |
                   |  equipment, and supplies.................... |12/84| 111.8   111.2   111.0    -1.5     -.2
        37         | Transportation equipment.................... |12/84| 133.8   131.7   135.3     -.1     2.7
        38         | Measuring and controlling instruments;       |     |
                   |  photographic, medical, optical goods;       |     |
                   |  watches, clocks............................ |12/84| 125.3   126.0   125.6      .4     -.3
        39         | Miscellaneous manufacturing industries...... |12/85| 129.1   129.3   129.5      .9      .2
                   |                                              |     |
                   |Services industries                           |     |
        40         | Railroad transportation..................... |12/96| 100.6   101.0   100.9     (3)     -.1
        42         | Motor freight transportation and warehousing |06/93| 109.0   109.3   109.3     2.2     0
        43         | United states postal service................ |06/89| 132.3   132.3   132.3     0       0
        44         | Water transportation........................ |12/92| 104.8   104.3   103.7     -.9     -.6
        45         | Transportation by air....................... |12/92| 126.2   123.3   124.4     1.6      .9
        46         | Pipe lines, except natural gas.............. |12/86|  98.9    98.7    98.7    -2.2     0
        80         | Health services............................. |12/94| 106.0   106.2   106.3     1.0      .1
        81         | Legal services.............................. |12/96| 102.2   102.4   102.7     (3)      .3
 ____________________________________________________________________________________________________________________
 1/ Indexes in this table are derived from the net-output-weighted industry price indexes.
    Because of differences in coverage and aggregation methodology, they will generally not match the movements
    of similarly-titled indexes which are derived from traditional commodity groupings.
 2/ The indexes for June 1997 have been recalculated to incorporate late reports and corrections by respondents.
    All indexes are subject to revision four months after original publication.
 3/ Not available.
Table 5.  Producer Price Indexes by stage of processing, seasonally adjusted
 (1982=100)
________________________________________________________________________________________________________________
                                                       |      
                                                       |                      Index 1/   
                                                       |________________________________________________________
               Grouping                                |         |        |        |        |        |        
                                                       |   May.  |  Jun.  |  Jul.  |  Aug.  |  Sep.  |  Oct.    
                                                       |   1997  |  1997  |  1997  |  1997  |  1997  |  1997  
_______________________________________________________|_________|________|________|________|________|__________
      Finished goods...................................|   131.3    131.1    131.0    131.4    132.0    132.1
        Finished consumer goods........................|   129.6    129.4    129.2    129.7    130.4    130.6
          Finished consumer foods......................|   135.3    134.1    133.7    134.1    134.2    134.7
            Crude......................................|   125.9    117.1    114.6    114.9    120.1    131.2
            Processed..................................|   136.0    135.3    135.1    135.5    135.3    134.9
          Finished consumer goods, excluding foods.....|   127.0    127.2    127.1    127.7    128.6    128.7
            Nondurable goods less foods................|   122.6    123.0    123.1    123.7    124.8    124.8
            Durable goods..............................|   133.6    133.5    132.9    133.3    133.9    134.1
        Capital equipment..............................|   138.1    138.2    138.0    138.0    138.4    138.3
          Manufacturing industries.....................|   137.5    137.6    137.6    137.6    137.8    137.8
          Nonmanufacturing industries..................|   138.2    138.3    138.1    138.1    138.6    138.4
                                                       |   
      Intermediate materials, supplies, and components.|   125.3    125.3    125.1    125.2    125.6    125.5
        Materials and components for manufacturing.....|   128.3    128.3    128.3    128.3    128.4    128.3
          Materials for food manufacturing.............|   123.9    122.7    122.0    122.0    122.7    122.1
          Materials for nondurable manufacturing.......|   129.1    129.1    129.5    129.8    130.3    130.3
          Materials for durable manufacturing..........|   133.4    133.7    133.1    133.1    133.1    132.6
          Components for manufacturing.................|   126.5    126.4    126.5    126.2    126.1    126.1
        Materials and components for construction......|   147.1    146.9    147.1    147.0    146.8    146.5
        Processed fuels and lubricants.................|    87.1     87.6     86.4     87.0     88.2     88.6
          Manufacturing industries ....................|    89.5     89.8     88.9     89.2     91.1     91.3
          Nonmanufacturing industries..................|    85.6     86.1     84.8     85.6     86.3     86.8
        Containers.....................................|   134.6    134.3    133.9    134.0    135.4    136.7
        Supplies.......................................|   136.2    136.0    135.9    135.8    136.2    135.9
          Manufacturing industries.....................|   139.0    139.1    139.3    139.5    139.6    140.2
          Nonmanufacturing industries..................|   134.8    134.5    134.2    133.9    134.4    133.6
            Feeds......................................|   137.1    133.9    130.9    128.0    131.9    122.2
            Other supplies.............................|   134.5    134.5    134.6    134.7    134.8    135.2
                                                       |   
      Crude materials for further processing...........|   110.2    106.7    106.7    107.4    108.0    112.3
        Foodstuffs and feedstuffs......................|   117.0    110.4    111.0    110.9    110.6    110.6
        Nonfood materials..............................|   101.7    100.3     99.9    101.2    102.4    109.2
          Nonfood materials except fuel 2/.............|   105.1    100.6    101.3    102.4    101.1    103.4
            Manufacturing 2/...........................|    96.5     92.0     92.6     93.8     92.5     95.0
            Construction...............................|   202.8    202.2    202.9    202.7    201.8    200.2
          Crude fuel 3/................................|    86.3     90.4     88.2     89.7     95.1    108.9
            Manufacturing industries...................|    85.1     88.7     86.8     88.0     92.8    105.1
            Nonmanufacturing industries................|    87.7     92.0     89.7     91.3     96.9    111.3
                                                       |  
                     Special groupings                 |   
                                                       |   
      Finished goods, excluding foods..................|   130.0    130.2    130.1    130.5    131.3    131.3
      Intermediate materials less foods and feeds......|   125.2    125.3    125.1    125.3    125.6    125.7
      Intermediate foods and feeds.....................|   128.4    126.5    125.1    124.2    125.9    122.4
      Crude materials less agricultural products 2/....|   101.3     99.8     99.2    100.8    101.9    108.8
                                                       |        
      Finished energy goods............................|    80.8     81.2     81.3     82.4     83.6     83.7
      Finished goods less energy.......................|   140.3    140.0    139.8    139.9    140.4    140.5
      Finished consumer goods less energy..............|   141.1    140.7    140.4    140.7    141.1    141.3
                                                       |   
      Finished goods less foods and energy.............|   142.2    142.3    142.1    142.2    142.8    142.8
      Finished consumer goods less foods and energy....|   144.8    144.9    144.7    144.8    145.5    145.6
      Consumer nondurable goods less foods and energy..|   152.9    153.1    153.2    153.3    154.0    153.9
                                                       |   
      Intermediate energy goods........................|    86.9     87.3     86.1     86.7     87.9     88.3
      Intermediate materials less energy...............|   133.8    133.7    133.7    133.7    133.8    133.7
      Intermediate materials less foods and energy.....|   134.2    134.2    134.2    134.3    134.3    134.4
                                                       |  
      Crude energy materials 2/........................|    80.8     79.2     78.7     80.0     82.1     90.9
      Crude materials less energy......................|   127.1    122.3    122.7    122.9    122.3    122.4
      Crude nonfood materials less energy 3/...........|   157.3    156.9    156.7    157.9    156.3    156.8
______________________________________________________________________________________________________________

  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 June 1997 have been
      recalculated to incorporate late reports and corrections by respondents.  
  2/  Includes crude petroleum.
  3/  Excludes crude petroleum.

Technical Notes





Brief Explanation of
Producer Price Indexes

     Producer price indexes (PPI) measure average changes in
prices received by domestic producers of commodities in all
stages of processing. Most of the information used in
calculating the indexes is obtained through the systematic
sampling of nearly every industry in the manufacturing and
mining sectors of the economy. The PPI program also includes
some information from other sectors--agriculture, fishing,
forestry, services, and gas and electricity. Because
producer price indexes are designed to measure only the
change in prices received for the output of domestic
industries, imports are not included. The sample currently
contains about 3,200 commodities and 80,000 quotations per
month.
     There are three primary systems of indexes within the
PPI program: (1) Stage of processing indexes; (2) commodity
indexes; and (3) indexes for the net output of industries
and their products. The stage-of-processing structure
(tables 1 and 2) organizes products by class of buyer and
degree of processing. The commodity structure (tables 2 and
3) organizes products by similarity of end-use or material
composition. The entire output of various industries is
sampled to derive price indexes for the net output of
industries and their products (table 4).
     Within the stage-of-processing system, finished goods
are commodities that will not undergo further processing and
are ready for sale to the final demand user, either an
individual consumer or business firm. Consumer foods include
unprocessed foods such as eggs and fresh vegetables, as well
as processed foods such as bakery products and meats. Other
finished consumer goods include durable goods such as
automobiles, household furniture, and appliances, and
nondurable goods such as apparel and home heating oil.
Capital equipment includes producer durable goods such as
heavy motor trucks, tractors, and machine tools.
     The stage-of-processing category for intermediate
materials, supplies, and components consists partly of
commodities that have been processed but require further
processing. Examples of such semifinished goods include
flour, cotton yarn, steel mill products, and lumber. The
intermediate goods category also encompasses nondurable,
physically complete items purchased by business firms as
inputs for their operations. Examples include diesel fuel,
belts and belting, paper boxes, and fertilizers.
     Crude materials for further processing are products
entering the market for the first time that have not been
manufactured or fabricated and that are not sold directly to
consumers. Crude foodstuffs and feedstuffs include items
such as grains and livestock. Examples of crude nonfood
materials include raw cotton, crude petroleum, coal, hides
and skins, and iron and steel scrap.
     Producer price indexes for the net output of industries
and their products are grouped according to the Standard
Industrial Classification (SIC) and the Census product code
extension of the SIC. Industry price indexes are compatible
with other economic time series organized by SIC codes, such
as data on employment, wages, and productivity. Table 4
lists indexes for the net output of major mining and
manufacturing industry groups at the 2-digit level.
     Producer price indexes are based on selling prices
reported by establishments of all sizes selected by
probability sampling, with the probability of selection
proportionate to size. Individual items and transaction
terms from these firms are also chosen by probability
proportionate to size. BLS strongly encourages cooperating
companies to supply actual transaction prices at the time of
shipment to minimize the use of list prices. Prices are
normally reported by mail questionnaire for the Tuesday of
the week containing the 13th.
     Price data are provided on a voluntary and confidential
basis; no one but sworn BLS employees are allowed access to
individual company price reports. All producer price indexes
are routinely subject to revision once, 4 months after
original publication, to reflect the availability of late
reports and corrections by respondents.
     Net output values of shipments are used as weights for
industry indexes. Net output values refer to the value of
shipments from establishments in one industry to
establishments classified in another industry. However,
weights for commodity price indexes are based on gross
shipment values, including shipment values between
establishments within the same industry. As a result, broad
commodity grouping indexes such as the all commodities index
are affected by the multiple counting of price change at
successive stages of processing, which can lead to
exaggerated or misleading signals about inflation. Stage-of-
processing indexes partially correct this defect, but
industry indexes consistently correct for this at all levels
of aggregation. Therefore, industry and stage-of-processing
indexes are more appropriate than broad commodity groupings
for economic analysis of general price trends.
     Weights for most traditional commodity groupings of the
PPI, as well as all indexes (such as stage-of-processing
indexes) calculated from traditional commodity groupings,
currently reflect 1987 values of shipments as reported in
the Census of Manufactures and other sources. From January
1987 through December 1991, PPI weights were derived from
1982 shipment values. Industry indexes shown in table 4 are
also now calculated with 1987 net output weights.
     Effective with publication of January 1988 data, many
important PPI series (including stage-of-processing
groupings and most commodity groups and individual items)
were placed on a new reference base, 1982=100, to coincide
with the reference year of the shipment weights. From 1971
through 1987, the standard reference base for most PPI
series was 1967=100. Except for rounding differences, the
shift to the new reference base did not alter any changes to
previously published percent changes for affected PPI
series. (See "Calculating Index Changes," below.) The new
reference base is not used for indexes with a base later
than December 1981, nor for indexes for the net output of
industries and their products.
     For further information on the underlying concepts and
methodology of the Producer Price Index, see chapter 16,
"Producer Prices," in BLS Handbook of Methods (September
1992), Bulletin 2414. Reprints are available from the Bureau
of Labor Statistics on request.

Calculating Index Changes

     Movements of price indexes from one month to another
are usually expressed as percent changes rather than as
changes in index points because index point chances are
affected by the level of the index in relation to its base
period, while percent changes are not. The box shows the
computation of index point and percent changes.
     Percent changes for 3-month and 6-month periods can be
expressed as annual rates that are computed according to the
standard formula for compound growth rates. These data
indicate what the percent change would be if the rate for a
given 3- or 6-month span were maintained for a 12-month
period.





                Index Point Change

     Finished Goods Price Index    107.5
     Less previous index           104.0
     Equals index point change       3.5

          Index Percent Change

     Index point change              3.5
     Divided by the previous index 104.0
     Equals                          0.034
     Result multiplied by 100        0.034 x 100
     Equals percent change           3.4

     Each index measures price changes from a reference
period which equals 100.0 (1982 or some later month). An
increase of 5.5 percent from the reference period in the
Finished Goods Price Index, for example, is shown as 105.5.
This change can also be expressed in dollars as follows:
"Prices received by domestic producers of a systematic
sample of finished goods have risen from $100 in 1982 to
$105.50 to-day." Likewise, a current index of 90.0 would
indicate that prices received by producers of finished goods
today are 10 percent lower than they were in 1982.

Seasonally Adjusted
and Unadjusted Data

     Because price data are used for different purposes by
different groups, the Bureau of Labor Statistics publishes
seasonally adjusted as well as unadjusted changes each
month.
     Seasonally adjusted data are preferred for analyzing
general price trends in the economy because they eliminate
the effect of changes that normally occur at about the same
time and in about the same magnitude every year-such as
price movements resulting from normal weather patterns,
regular production and marketing cycles, model changeovers,
seasonal discounts, and holidays. For these reasons,
seasonally adjusted data more clearly reveal underlying
cyclical trends.
     Unadjusted data are of primary interest to users who
need information which can be related to actual dollar
values of transactions. Individuals requiring this
information include marketing specialists, purchasing
agents, budget and cost analysts, contract specialists, and
commodity traders. It is the unadjusted data that are
generally cited in escalating long-term contracts such as
purchasing agreements or real estate leases. (See Escalation
and Producer Price Indexes: A Guide for Contracting Parties,
BLS Report 807, September 1991, available on request from
BLS.)
     For more information, see "Appendix A: Seasonal
Adjustment Methodology at BLS," in the BLS Handbook of
Methods (September 1992), Bulletin 2414.