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http://stats.bls.gov/ppihome.htm   OCTOBER 10, 1997
                                     
                 Producer Price Indexes -- September 1997

     The Producer Price Index for Finished Goods increased 0.5 percent in
September, seasonally adjusted, the Bureau of Labor Statistics of the U. S.
Department of Labor reported today.  This followed a rise of 0.3 percent in
August.  Prices for finished goods other than foods and energy increased
0.4 percent in September after inching up 0.1 percent in the prior month.
Prices received by domestic producers of intermediate goods rose 0.3
percent in September after increasing 0.1 percent in the previous month.
The index for crude materials increased 0.6 percent after rising 0.7
percent in August.  (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                                                     
Sept.     0.3    0.4    0.7     0.1         3.0    0.4   -2.6
 Oct.     0.4    0.8    1.7    -0.1         3.1   -0.2   -0.7
 Nov.     0.2      0    0.9       0         3.0   -0.2    2.7
 Dec.     0.5   -0.2    3.3     0.1         2.8    0.5    6.2
                                                             
 1997                                                        
 Jan.    -0.3   -1.0   -0.2       0         2.5    0.2    3.8
 Feb.    -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    r-0.2    0.4  r-1.3   r-0.2        r0.4   -0.2   r2.1
 June   r-0.2  r-1.0   r0.5     0.1        -0.1      0  r-3.1
 July    -0.1   -0.2    0.1    -0.1        -0.2   -0.2   -0.1
 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
r=revised.  Some of the figures shown above and elsewhere in this release
may differ from those previously
reported because data for May 1997 have been recalculated to incorporate
late reports and corrections by respondents.

                                    -2-
                                     
     The September increase in the index for finished goods was led by a
1.5 percent rise in finished energy goods.  Increases in the indexes for
consumer goods other than foods and energy and for capital equipment also
contributed to the September rise.  Much of the advance in these latter
indexes was due to a seasonally-adjusted increase of 1.2 percent in motor
vehicle prices.  The index for finished consumer foods rose less than a
month ago.

     For the first nine months of 1997, the Producer Price Index for
Finished Goods declined at a 1.4-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 nine months of 1997 after rising 0.6 percent in
the prior year.

     During the third quarter of 1997, the Finished Goods Price Index rose
at a seasonally-adjusted annual rate of 2.8 percent following a 3.6-percent
rate of decline during the second quarter.  The index for finished energy
goods increased at a 12.4-percent annual rate from June 1997 to September
1997 after falling at a 15.1-percent rate during the second quarter of
1997.  The annualized rate of increase for the finished goods less food and
energy index was 1.4 percent during the third quarter following a decline
of 0.8 percent in the previous quarter.  Prices for finished consumer foods
advanced at a seasonally-adjusted annual rate of 0.6 percent from June to
September after decreasing at a 3.5-percent rate during the second quarter.
The index for capital equipment turned up 0.9 percent on a SAAR basis after
falling at a 1.2 percent rate in the previous quarter.

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                                                             
Sept.     0.8    1.1    0.2        0.6   -3.5   -3.3    0.5     10.1
 Oct.    -2.0    1.3   -0.2        0.5   -3.1    2.1   -0.1     9.4
 Nov.    -3.2   -0.2    0.1        0.5   -2.5   11.1   -0.2     10.6
 Dec.    -0.6    2.9    0.1        0.7   -2.7   19.3      0     14.7
                                                                  
 1997                                                             
 Jan.    -0.5    0.6    0.1        0.9   -1.2    8.9    2.3     16.1
 Feb.    -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  r-1.5   r0.1      r-0.6   -0.2   r5.8   r1.3    r-4.7
 June    -1.4   r0.2     r0       -0.4   -5.4  r-2.2   r0.1     -5.4
 July    -1.2   -1.1      0       -0.3    0.3   -0.4   -0.5     -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
r=revised.  Some of the figures shown above and elsewhere in this release
may differ from those previously reported because
data for May 1997 have been recalculated to incorporate late reports and
corrections by respondents.

                                    -3-

     Before seasonal adjustment, the Producer Price Index for Finished
Goods increased 0.1 percent in September to stand at 131.8 (1982=100).
From September 1996 to September 1997, the finished goods index showed no
change.  During this same period, prices for finished energy goods fell 0.1
percent, finished consumer foods prices declined 0.6 percent, and prices
for finished goods other than foods and energy rose 0.4 percent.  Prices
received by domestic producers of intermediate goods moved down 0.6 percent
during the 12 months ended in September 1997, and crude materials prices
fell 4.2 percent over the same period.

Finished goods

     The Producer Price Index for Finished Energy Goods rose 1.5 percent,
seasonally adjusted, in September after increasing 1.4 percent a month ago.
Price increases for residential electric power, gasoline, residential
natural gas, and finished lubricants outweighed price decreases for fuel
oil #2.

     The index for finished consumer goods other than foods and energy rose
0.5 percent in September following a 0.1-percent increase in the prior
month.  Prices for passenger cars rose 1.4 percent after gaining 0.5
percent in the previous month.  Before seasonal adjustment, the index for
passenger cars fell 1.8 percent in September to a point 2.1 percent below
its year-ago level.  The indexes for light trucks and tobacco products
turned up after falling in August.  By contrast, the index for alcoholic
beverages turned down 1.0 percent following a 0.4-percent increase in the
prior month.  Prices for book publishing also turned down after rising a
month ago.

     The index for capital equipment increased 0.3 percent in September
after showing no change in August.  Prices for light motor trucks turned up
1.5 percent after declining 0.1 percent a month ago.  The index for
communication and related equipment showed no change after falling in
August.  Prices for commercial furniture rose after showing no change in
the prior month.

     The index for finished consumer foods increased 0.1 percent in
September.  Rising prices for fresh fruits and melons, eggs for fresh use,
finfish and shellfish, and dairy products were key factors behind this
month's advance.  The September increase for finished consumer foods
followed a 0.3-percent increase in the previous month.  This deceleration
was led by the index for fresh and dry vegetables, which fell 5.1 percent
after rising 17.5 percent in August.  Prices for beef and veal and for
roasted coffee also turned down after increasing in the prior month.  The
index for processed young chickens fell more than a month ago.

Intermediate goods

     The Producer Price Index for Intermediate Materials, Supplies, and
Components increased 0.3 percent in September, seasonally adjusted.  This
advance can be traced primarily to price increases for intermediate energy
goods, intermediate foods and feeds, and materials for nondurable
manufacturing.  By contrast, the index for materials and components for
construction fell slightly in September.  Prices for materials for durable
manufacturing were unchanged over the month.  The index for intermediate
goods excluding foods and energy showed no change after rising 0.1 percent
in August.  (See Table B.)

     The 0.3-percent rise in prices for intermediate goods in September
follows a 0.1-percent gain in the previous month.  The key factors in this
acceleration were an upturn in prices for foods and feeds and a faster rate
of increase for energy goods than in the prior month.
                                    -4-
                                     
     For the third quarter, the Intermediate Goods Price Index advanced at
a seasonally-adjusted annual rate of 1.0 percent after declining at a 1.9-
percent rate during the second quarter of 1997.  The index for intermediate
energy goods rose at a seasonally-adjusted annual rate of 3.7 percent in
the third quarter after falling at a 14.2-percent rate during the second
quarter.  The index for intermediate foods and feeds fell at a seasonally-
adjusted annual rate of 2.2 percent from June to September after declining
at a 1.6-percent rate during the second quarter.  The index for
intermediate goods other than foods and energy rose at an annual rate of
0.3 percent in the third quarter after increasing at a 0.4-percent rate in
the second quarter.
     
     The index for intermediate energy materials rose 1.4 percent in
September.  This advance was led by a 1.6-percent increase in prices for
electric power.  Also contributing were rising prices for residual fuel,
liquefied petroleum gas, and gasoline.  The September rise in the
intermediate energy goods index followed a 0.7-percent advance in August.
This acceleration was, again, primarily caused by prices for electric
power, which increased after falling 0.9 percent in the previous month.
The index for residual fuel also turned up after falling in August.  By
contrast, the index for No. 2 diesel fuel declined 4.8 percent following a
4.3-percent advance one month ago.  Prices for jet fuels also fell after
rising.

     The index for intermediate foods and feeds rose 1.4 percent in
September.  Key to this advance was a 2.8-percent increase for prepared
animal feeds.  Increasing prices for confectionery materials, cheese, dairy
products, and flour also contributed to the overall index's rise.
September's increase in prices for intermediate foods and feeds follows a
0.7-percent decline one month ago.  Contributing most to this upturn was
the index for prepared animal feeds, which rose 2.8 percent after falling
2.1 percent in the prior month.  Prices for confectionery materials and
crude vegetable oils also increased after falling last month.  By contrast,
the index for beef and veal declined 0.6 percent following a 3.3-percent
advance in the previous month.

     The index for materials for nondurable manufacturing rose 0.4 percent
for September.  A 4.3-percent increase in prices for paperboard was key to
this advance.  The increase in the index for nondurable manufacturing
materials followed a smaller 0.2-percent advance in August.  Contributing
to this acceleration was a moderation in the rate of decline in the index
for plastic resins.  Those prices fell 0.7 percent in September after
falling 1.7 percent in August.  Prices for paperboard, primary basic
organic chemicals, and paper rose more than in the previous month.  The
index for finished fabrics increased after falling a month earlier.  By
contrast, the index for alkalies and chlorine decreased 1.6 percent
following a 2.8-percent increase in the prior month.  Prices for paint
materials and nitrogenates also fell after rising in August.  The index for
woodpulp rose less than a month ago.

     The index for materials and components for construction declined 0.1
percent in September, the same as a month ago.  Falling prices for softwood
lumber, plastic construction products, fabricated structural metal
products, and asphalt felts and coatings outweighed advancing prices for
air conditioning and refrigeration equipment, plywood, and gypsum products.

     The index for materials for durable manufacturing was unchanged in
September, the same as in August.  Rising prices for aluminum mill shapes;
hot rolled bars, plates, and structural shapes; primary aluminum ingot;
semi-finished steel mill products; and prepared paint were offset by
declining prices for copper cathode and refined copper, copper and brass
mill shapes, cold rolled sheet and strip, hot rolled sheet and strip, and
flat glass.
                                    -5-

Crude goods

     The Producer Price Index for Crude Materials for Further Processing
rose 0.6 percent, seasonally adjusted, in September following a 0.7-percent
gain in August.  Price increases for crude energy materials more than
offset declines for basic industrial materials and for foodstuffs and
feedstuffs.  (See table B.)

     The index for crude goods turned up at a 4.6-percent seasonally-
adjusted annual rate from June 1997 through September 1997 following a 1.9-
percent rate of decline in the second quarter of 1997.  Prices for crude
energy materials rose at a 16.6 percent SAAR in the third quarter after
increasing at a 10.2-percent rate between March 1997 and June 1997.  The
index for basic industrial materials declined at a 3.0-percent SAAR during
the third quarter following a 3.5-percent rate of decline in the second
quarter.  Prices for crude foodstuffs and feedstuffs also fell less rapidly
in the third quarter (-0.4 percent) than in the second quarter (-10.1
percent) on a SAAR basis.

     The index for crude energy materials increased 2.6 percent in
September.  This rise was mostly due to a 7.4-percent advance in prices for
natural gas.  The September increase in prices for crude energy materials
follows a 1.7 percent rise in August.  This acceleration was led by natural
gas prices, which rose faster in September than in August.  By contrast,
prices for crude petroleum turned down after showing no change in August.
Coal prices rose less than in the previous month.

     Prices for crude nonfood materials less energy fell 1.0 percent in
September after rising 0.8 percent in the prior month.  The index for
wastepaper turned down 4.9 percent following an 18.5-percent increase a
month ago.  Prices for iron and steel scrap and for aluminum base scrap
also fell after rising in August.

     The index for crude foodstuffs and feedstuffs decreased 0.3 percent in
September.  The 6.8-percent decline in prices for slaughter broilers and
fryers was the main cause of this index's decline.  The September decrease
in prices for crude foodstuffs and feedstuffs follows a smaller 0.1-percent
drop in August.  This faster rate of decline was led by the index for Irish
potatoes for processing, which turned down 15.3 percent following a 105.3
percent rise in the prior month.  Prices for slaughter broilers and fryers
and for fluid milk also fell after increasing a month ago.  The index for
wheat rose less than in the previous month.  By contrast, prices for
slaughter hogs declined 3.3 percent in September after falling 7.9 percent
in August.  The index for fresh fruits and melons turned up after declining
a month earlier.

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 2.0 percent in September following a 1.1-percent
increase in August.  (Net output price indexes are not seasonally
adjusted.)   During the third quarter of 1997, this index rose at an annual
rate of 12.1 percent, after increasing at a 4.6-percent rate in the second
quarter.  In September, prices for the oil and gas extraction industry
group turned up 2.9 percent after rising 1.4 percent in the previous month.
The index for the coal mining industry group increased 0.2 percent
following a 1.0-percent increase a month ago.  Prices for the nonmetallic
minerals mining industry group declined 0.1 percent following a 6.2-percent
advance in the prior month.  The index for the metal mining industry group
fell 3.2 percent, after showing no change one month ago.  In September, the
Producer Price Index for total domestic mining industries stood at 82.0
(December 1984=100), 0.9 percent above its year-ago level.
                                    -6-


Manufacturing.  The Producer Price Index for the net output of total
domestic manufacturing industries showed no change in September following a
0.2-percent increase in August.  From June to September, this index showed
no change, after declining at a 1.6-percent annual rate in the second
quarter.  In September, prices for the petroleum refining and related
products industry group rose 1.4 percent following a 4.2-percent increase
in the prior month.  The indexes for fabricated metal products, measuring
and controlling instruments, and miscellaneous manufacturing industries
showed no change after rising in August.  Prices for the food and kindred
products, and rubber and plastic products industry groups turned down after
increasing in the previous month.  The index for the transportation
equipment industry group fell more than in the prior month.  On the other
hand, prices for the tobacco manufactures industry group advanced 4.4
percent after showing no change in August.  The indexes for the paper and
allied products and leather and leather products industry groups rose more
than in the previous month.  In September, the Producer Price Index for the
net output of the total domestic manufacturing sector stood at 127.3
(December 1984=100), 0.2 percent below its year-ago level.

Other.  Among other industries in September, the indexes for local trucking
without storage, scheduled air cargo transportation, travel agencies,
hotels and motels, offices and clinics of doctors of medicine, and home
health care services advanced following declines one month ago.  Prices for
local trucking with storage rose after showing no change in the prior
month.  The index for farm product warehousing and storage, airports and
airport services, natural gas utilities, and  specialty hospitals, except
psychiatric increased more than in the previous month.  Prices for freight
transportation on the Great Lakes-St. Lawrence Seaway, tugging and towing
services, air courier services, and truck rental and leasing (without
drivers) were unchanged following declines in August.  The indexes for deep
sea foreign transportation of freight and marine cargo handling fell less
than one month earlier.

     By contrast, prices for freight transportation arrangement, scrap and
waste materials, and passenger car rental (without drivers) declined
following advances one month ago.  Prices for scheduled air passenger
transportation fell more than last month.  The indexes for nonscheduled air
transportation, and architectural design, analysis, and consulting services
showed no change following advances in August.  Prices for railroads (line-
haul operating) and skilled and intermediate care facilities rose less than
in the prior month.


                                   *****
            Producer Price Index data for October 1997 will be
          released on Friday, November 14, 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.
 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|                       |Sept.1997 from:|
                                                  |          |_______________________|_______________|______________________________
                                                  |   Dec.   |       |       |       |       |       |       |         |
                                                  |            May   |Aug.   |Sept.  |  Sept.| Aug.  |June to|July  to |Aug.  to
                                                  |   1996 1/|1997 2/|1997 2/|1997 2/|  1996 | 1997  |  July |   Aug.  |  Sept.
 _________________________________________________|__________|_______|_______|_______|_______|_______|_______|_________|____________
                                                  |
 Finished goods...................................|  100.000   131.6   131.7   131.8     0      0.1     -0.1      0.3     0.5
   Finished consumer goods........................|   76.423   130.0   130.2   130.5      .1     .2      -.2       .4      .5
     Finished consumer foods......................|   23.644   135.2   134.8   134.8     -.6    0        -.2       .3      .1
       Crude......................................|    1.639   124.4   116.7   122.8    -4.2    5.2     -1.7       .3     4.5
       Processed..................................|   22.005   135.9   136.2   135.6     -.4    -.4      -.1       .3     -.1
     Finished consumer goods, excluding foods.....|   52.779   127.6   128.1   128.5      .4     .3      -.1       .5      .7
       Nondurable goods less foods................|   36.392   123.5   124.6   125.7      .9     .9       .1       .5      .9
       Durable goods..............................|   16.387   133.6   132.6   131.5     -.7    -.8      -.5       .3      .5
   Capital equipment..............................|   23.577   138.1   137.7   137.1     -.1    -.4      -.1      0        .3
     Manufacturing industries.....................|    6.028   137.6   137.4   137.1      .3    -.2      0        0        .1
     Nonmanufacturing industries..................|   17.549   138.3   137.7   137.0     -.4    -.5      -.1      0        .4
                                                  |
 Intermediate materials, supplies, and components.|  100.000   125.4   125.6   126.0     -.6     .3      -.2       .1      .3
   Materials and components for manufacturing.....|   49.031   128.4   128.3   128.4     -.2     .1      -.1      0        .1
     Materials for food manufacturing.............|    3.318   123.9   122.8   123.2    -4.6     .3      -.6      0        .6
     Materials for nondurable manufacturing.......|   15.610   129.1   129.6   130.2      .2     .5       .2       .2      .4
     Materials for durable manufacturing..........|   10.965   133.4   133.1   133.1     1.4    0        -.6      0       0
     Components for manufacturing.................|   19.138   126.5   126.2   126.0     -.6    -.2       .1      -.2     -.1
   Materials and components for construction......|   12.691   147.2   147.0   146.7     1.3    -.2       .1      -.1     -.1
   Processed fuels and lubricants.................|   13.665    87.2    89.2    90.9    -2.9    1.9     -1.1       .7     1.4
     Manufacturing industries ....................|    5.415    90.1    91.4    93.5    -1.6    2.3      -.1       .3     2.1
     Nonmanufacturing industries..................|    8.250    85.4    87.7    89.2    -3.7    1.7     -1.7       .9      .8
   Containers.....................................|    3.527   134.6   134.0   135.4    -2.2    1.0      -.3       .1     1.0
   Supplies.......................................|   21.086   136.2   135.7   136.1     -.5     .3      0        -.1      .3
     Manufacturing industries.....................|    7.535   139.0   139.5   139.6      .4     .1       .3       .1      .1
     Nonmanufacturing industries..................|   13.551   134.8   133.8   134.3    -1.0     .4      -.1      -.2      .4
       Feeds......................................|    1.607   136.9   127.6   131.7    -7.1    3.2     -2.4     -2.2     3.0
       Other supplies.............................|   11.944   134.5   134.7   134.7     -.1    0         .1       .1      .1
                                                  |
 Crude materials for further processing...........|  100.000   110.4   107.8   108.2    -4.2     .4      -.1       .7      .6
   Foodstuffs and feedstuffs......................|   38.004   117.4   111.7   111.1   -11.0    -.5       .3      -.1     -.3
   Nonfood materials..............................|   61.996   101.8   101.2   102.4     1.6    1.2      -.5      1.3     1.2
     Nonfood materials except fuel 3/.............|   36.095   105.3   102.4   101.0    -5.7   -1.4       .2      1.1    -1.3
       Manufacturing 3/...........................|   32.588    96.7    93.8    92.4    -6.7   -1.5       .2      1.3    -1.4
       Construction...............................|    3.507   202.9   202.7   201.7     2.9    -.5       .2      -.1     -.4
     Crude fuel 4/................................|   25.901    86.3    89.7    95.1    18.1    6.0     -1.7      1.7     6.0
       Manufacturing industries...................|    5.258    85.1    88.0    92.8    16.0    5.5     -1.4      1.4     5.5
       Nonmanufacturing industries................|   20.643    87.7    91.2    96.9    18.8    6.3     -1.8      1.8     6.1
                                                  |
                Special groupings                 |
                                                  |
 Finished goods, excluding foods..................|5/ 76.356   130.5   130.7   130.8      .2     .1      -.1       .3      .6
 Intermediate materials less foods and feeds......|6/ 95.065   125.3   125.6   126.0     -.2     .3      -.2       .2      .2
 Intermediate foods and feeds.....................|6/  4.935   128.3   124.6   126.2    -5.5    1.3     -1.2      -.7     1.4
 Crude materials less agricultural products 3/ 7/.|8/ 59.898   101.2   100.8   101.9     1.8    1.1      -.7      1.6     1.1
                                                  |
 Finished energy goods............................|5/ 14.720    82.2    84.0    85.2     -.1    1.4       .1      1.4     1.5
 Finished goods less energy.......................|5/ 85.280   140.3   139.9   139.7      .1    -.1      -.1       .1      .4
 Finished consumer goods less energy..............|5/ 61.703   141.1   140.7   140.6      .1    -.1      -.2       .2      .3
                                                  |
 Finished goods less foods and energy.............|5/ 61.636   142.3   141.9   141.6      .4    -.2      -.1       .1      .4
 Finished consumer goods less foods and energy....|5/ 38.059   144.9   144.5   144.4      .6    -.1      -.1       .1      .5
 Consumer nondurable goods less foods and energy..|5/ 21.672   153.0   153.2   153.9     1.6     .5      0         .1      .5
                                                  |
 Intermediate energy goods........................|6/ 13.796    87.0    88.9    90.6    -2.9    1.9     -1.1       .7     1.4
 Intermediate materials less energy...............|6/ 86.204   133.9   133.6   133.8     -.1     .1      0        0        .1
 Intermediate materials less foods and energy.....|6/ 81.269   134.2   134.2   134.3      .3     .1      0         .1     0
                                                  |
 Crude energy materials 3/........................|8/ 42.427    80.8    80.0    82.1     1.4    2.6      -.4      1.7     2.6
 Crude materials less energy......................|8/ 57.573   127.5   123.5   122.6    -6.9    -.7      0         .2     -.5
 Crude nonfood materials less energy 4/...........|8/ 19.569   157.8   157.9   156.1     1.7   -1.1      -.5       .8    -1.0
                                                  |
 ___________________________________________________________________________________________________________________________________
 
   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 May 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 |                                                       |                       |Sept.1997 from:|
    code    |                      Grouping                         |_______________________|_______________|________________________
            |                                                       |       |       |       |       |       |       |       |
            |                                                       | May   |Aug.   |Sept.  | Sept. | Aug.  |June to|July to|Aug. to
            |                                                       |1997 1/|1997 1/|1997 1/| 1996  | 1997  |  July |  Aug. |  Sept.
 ___________|_______________________________________________________|_______|_______|_______|_______|_______|_______|_______|________
            |                                                       |
            |FINISHED GOODS.........................................| 131.6   131.7   131.8     0      0.1     -0.1     0.3     0.5
            | FINISHED CONSUMER GOODS...............................| 130.0   130.2   130.5      .1     .2      -.2      .4      .5
            |  FINISHED CONSUMER FOODS..............................| 135.2   134.8   134.8     -.6    0        -.2      .3      .1
            |                                                       |
 01-11      |   Fresh fruits and melons 2/..........................| 110.8    81.1    92.2   -22.8   13.7     -9.7    -1.5    13.7
 01-13      |   Fresh and dry vegetables 2/.........................| 111.3   131.7   125.0    17.5   -5.1      3.0    17.5    -5.1
 01-71-07   |   Eggs for fresh use (Dec. 1991=100) 2/...............|  86.9    88.0   100.1    -7.1   13.8     21.7    -8.9    13.8
 02-11      |   Bakery products 2/..................................| 173.8   173.9   174.4     1.8     .3       .2     0        .3
 02-13      |   Milled rice 2/......................................| 127.7   125.6   124.1    -7.0   -1.2      -.8     -.7    -1.2
 02-14-02   |   Pasta products (June 1985=100) 2/...................| 126.4   123.4   123.4    -3.7    0       -2.6     0       0
 02-21-01   |   Beef and veal.......................................| 105.3   104.7   103.8      .2    -.9     -1.3     3.3     -.6
 02-21-04   |   Pork................................................| 132.2   131.9   123.2    -1.8   -6.6      1.2    -1.7    -1.8
 02-22-03   |   Processed young chickens............................| 118.4   122.0   120.9    -5.3    -.9      2.2     -.1    -1.7
 02-22-06   |   Processed turkeys 2/................................| 102.9   100.3   102.4    -3.3    2.1     -1.2    -2.5     2.1
 02-23      |   Finfish and shellfish...............................| 180.9   166.3   169.5     7.7    1.9     -2.5    -1.3     2.7
 02-3       |   Dairy products......................................| 125.9   126.0   127.4    -8.8    1.1     -1.3      .8      .7
 02-4       |   Processed fruits and vegetables 2/..................| 126.9   126.0   125.4    -2.5    -.5       .2     -.5     -.5
 02-55      |   Confectionery end products 2/.......................| 168.5   168.6   168.3      .2    -.2       .2     -.1     -.2
 02-62      |   Soft drinks.........................................| 133.5   133.0   132.7    -1.1    -.2       .2     -.2     -.2
 02-63-01   |   Roasted coffee 2/...................................| 158.8   167.0   165.1    29.4   -1.1      -.4      .7    -1.1
 02-76      |   Shortening and cooking oils 2/......................| 138.0   138.6   136.6    -2.8   -1.4      3.5    -2.0    -1.4
            |                                                       |
            |  FINISHED CONSUMER GOODS EXCLUDING FOODS..............| 127.6   128.1   128.5      .4     .3      -.1      .5      .7
            |                                                       |
 02-61      |   Alcoholic beverages.................................| 136.1   135.5   134.2     1.7   -1.0      -.1      .4    -1.0
 03-81-01   |   Women's apparel 2/..................................| 120.4   120.4   120.4     0      0         .3      .2     0
 03-81-02   |   Men's and boys' apparel.............................| 132.5   132.6   132.6      .5    0         .2      .1     -.1
 03-81-03   |   Girls', children's, and infants' apparel 2/.........| 122.6   123.0   123.1     0       .1      -.1    -1.0      .1
 03-82      |   Textile housefurnishings 2/.........................| 122.2   122.2   122.6     -.6     .3      -.2     0        .3
 04-3       |   Footwear............................................| 143.7   144.5   145.6     2.5     .8       .1      .5      .7
 05-41      |   Residential electric power (Dec. 1990=100)..........| 111.6   115.9   117.0      .1     .9      0      -1.0     1.3
 05-51      |   Residential gas (Dec. 1990=100).....................| 110.9   113.2   115.1     4.8    1.7       .6      .7     1.2
 05-71      |   Gasoline............................................|  72.8    73.5    75.2     2.2    2.3     -1.0     5.9     2.2
 05-73-02-01|   Fuel oil No. 2......................................|  66.2    61.6    60.2   -17.3   -2.3     -3.4     1.8    -8.0
 06-35      |   Pharmaceutical preps, ethical (Prescription)........| 272.7   273.2   273.5     2.6     .1      0       0       0
 06-36      |   Pharmaceutical preps,proprietary (Over-counter).....| 184.0   184.3   184.4      .6     .1       .2    -2.1     0
 06-71      |   Soaps and synthetic detergents 2/...................| 126.4   126.3   126.5     1.0     .2      -.2     0        .2
 06-75      |   Cosmetics and other toilet preparations 2/..........| 130.8   130.1   130.0      .2    -.1      0       -.6     -.1
 07-12      |   Tires, tubes, tread, etc 2/.........................|  95.8    94.9    95.2    -2.2     .3      -.1     -.1      .3
 09-15-01   |   Sanitary papers and health products 2/..............| 145.7   147.7   147.6     -.3    -.1      0        .8     -.1
 09-31-01   |   Newspaper circulation...............................| 201.7   202.6   202.7      .9    0        -.3      .2     0
 09-32-01   |   Periodical circulation..............................| 187.3   188.0   188.2     5.6     .1       .5      .1     1.1
 09-33      |   Book publishing 2/..................................| 198.0   199.5   198.3     1.3    -.6       .1      .6     -.6
 12-1       |   Household furniture 2/..............................| 146.0   146.3   146.5     1.2     .1       .1     0        .1
 12-3       |   Floor coverings 2/..................................| 126.7   128.0   127.4     -.5    -.5     -2.3     1.7     -.5
 12-4       |   Household appliances 2/.............................| 110.5   109.5   109.6    -2.6     .1      -.6     -.3      .1
 12-5       |   Home electronic equipment 2/........................|  78.3    78.3    78.4     -.8     .1      0       0        .1
 12-62      |   Household glassware 2/..............................| 162.1   161.9   161.9     2.4    0        0       0       0
 12-64      |   Household flatware 2/...............................| 138.6   138.4   138.4      .4    0        -.6      .4     0
 12-66      |   Lawn and garden equip., ex. tractors 2/.............| 132.9   132.4   130.5    -1.6   -1.4      -.5      .2    -1.4
 14-11-01   |   Passenger cars......................................| 133.0   129.9   127.6    -2.1   -1.8     -1.6      .5     1.4
 15-11      |   Toys, games, and children's vehicles................| 125.2   125.1   125.0     -.3    -.1       .1      .2     0
 15-12      |   Sporting and athletic goods 2/......................| 124.8   125.5   125.8     1.7     .2       .7      .4      .2
 15-2       |   Tobacco products 2/.................................| 248.2   247.8   255.7     7.3    3.2      0       -.2     3.2
 15-5       |   Mobile homes 2/.....................................| 152.1   152.2   152.6     1.5     .3      -.1      .3      .3
 15-94-02   |   Jewelry, platinum, & karat gold 2/..................| 130.6   130.4   130.9     1.4     .4      -.4     1.9      .4
 15-94-04   |   Costume jewelry and novelties 2/....................| 139.9   141.0   140.9     2.3    -.1       .4      .5     -.1
            |                                                       |
            | CAPITAL EQUIPMENT.....................................| 138.1   137.7   137.1     -.1    -.4      -.1     0        .3
            |                                                       |
 11-1       |   Agricultural machinery and equipment 2/.............| 148.8   148.0   147.8      .5    -.1       .4     0       -.1
 11-2       |   Construction machinery and equipment................| 142.0   142.1   142.2     1.5     .1      -.1      .1      .1
 11-37      |   Metal cutting machine tools 2/......................| 155.5   157.1   157.3     2.6     .1       .4      .4      .1
 11-38      |   Metal forming machine tools 2/......................| 153.0   154.5   155.1     3.2     .4       .6      .2      .4
 11-39      |   Tools, dies, jigs, fixtures, and ind. molds 2/......| 138.1   138.2   138.2     1.2    0         .2     -.1     0
 11-41      |   Pumps, compressors, and equipment...................| 146.5   147.0   147.1     2.4     .1       .3      .1      .1
 11-44      |   Industrial material handling equipment 2/...........| 129.6   130.0   129.9     1.7    -.1       .2      .1     -.1
 11-51      |   Electronic computers (Dec. 1990=100) 2/.............|  33.4    31.8    31.1   -24.0   -2.2     -1.8    -2.8    -2.2
 11-62      |   Textile machinery 2/................................| 152.5   152.5   152.5     2.9    0        0       0       0
 11-64      |   Paper industries machinery (June 1982=100)..........| 156.8   157.6   157.8     2.3     .1       .3     -.6      .3
 11-65      |   Printing trades machinery 2/........................| 138.1   139.3   138.8     1.0    -.4       .2     -.7     -.4
 11-74      |   Transformers and power regulators 2/................| 129.4   130.2   130.1      .7    -.1      2.4     -.3     -.1
 11-76      |   Communication & related equip. (Dec. 1985=100) 2/...| 113.7   114.3   114.3     1.1    0         .4     -.3     0
 11-79-05   |   X-ray and electromedical equipment 2/...............| 107.4   107.7   107.2    -2.2    -.5       .7     -.1     -.5
 11-91      |   Oil field and gas field machinery 2/................| 122.5   122.8   122.8     4.0    0        -.1      .2     0
 11-92      |   Mining machinery and equipment 2/...................| 140.3   140.6   141.0      .9     .3       .2      .1      .3
 11-93      |   Office and store machines and equipment 2/..........| 112.4   112.6   112.6      .7    0        0        .1     0
 12-2       |   Commercial furniture 2/.............................| 154.3   154.2   154.8     2.0     .4       .4     0        .4
 14-11-05   |   Light motor trucks..................................| 158.8   156.5   152.9     -.8   -2.3      -.8     -.1     1.5
 14-11-06   |   Heavy motor trucks..................................| 140.5   141.8   140.7    -1.3    -.8       .6     -.3      .1
 14-14      |   Truck trailers 2/...................................| 130.4   129.8   129.7     -.2    -.1      -.5     0       -.1
 14-21-02   |   Civilian aircraft (Dec. 1985=100)...................| 150.0   150.2   150.2     1.1    0         .4      .1      .2
 14-31      |   Ships (Dec. 1985=100) 2/............................| 141.4   144.7   144.8     4.0     .1      1.2     1.2      .1
 14-4       |   Railroad equipment..................................| 134.2   132.5   134.2    -2.0    1.3      -.3      .2     1.4
            |                                                       |
            |INTERMEDIATE MATERIALS, SUPPLIES, AND COMPONENTS.......| 125.4   125.6   126.0     -.6     .3      -.2      .1      .3
            |                                                       |
            | INTERMEDIATE FOODS AND FEEDS..........................| 128.3   124.6   126.2    -5.5    1.3     -1.2     -.7     1.4
            |                                                       |
 02-12-03   |   Flour 2/............................................| 123.4   115.4   117.8    -6.0    2.1     -5.0     1.1     2.1
 02-53      |   Refined sugar 2/....................................| 125.4   122.2   123.6    -1.5    1.1     -2.9     1.1     1.1
 02-54      |   Confectionery materials.............................| 107.8   107.6   109.9     1.4    2.1      -.4     -.8     2.6
 02-72      |   Crude vegetable oils 2/.............................| 117.4   110.6   112.5    -6.6    1.7     -1.3    -3.2     1.7
 02-9       |   Prepared animal feeds 2/............................| 139.7   131.7   135.4    -5.2    2.8     -1.7    -2.1     2.8
            |                                                       |
            | INTERMEDIATE MATERIALS LESS FOODS AND FEEDS...........| 125.3   125.6   126.0     -.2     .3      -.2      .2      .2
            |                                                       |
 03-1       |   Synthetic fibers 2/.................................| 111.3   110.8   110.4    -1.5    -.4      -.4      .1     -.4
 03-2       |   Processed yarns and threads 2/......................| 113.9   113.8   113.7    -2.3    -.1      0       -.2     -.1
 03-3       |   Gray fabrics 2/.....................................| 121.8   121.9   122.3      .8     .3       .1     -.1      .3
 03-4       |   Finished fabrics....................................| 124.0   123.7   124.1      .2     .3       .1     -.1      .5
 03-83-03   |   Industrial textile products 2/......................| 127.8   127.8   127.9     -.2     .1       .3     -.2      .1
 04-2       |   Leather.............................................| 183.6   178.6   179.6     2.0     .6      -.8     -.6      .4
 05-32      |   Liquefied petroleum gas 2/..........................|  73.8    75.1    78.8   -10.9    4.9     -3.8     2.5     4.9
 ____________________________________________________________________________________________________________________________________
 See footnotes at end of table.
 Table 2.  Producer Price Indexes and percent changes for selected commodity groupings by stage of processing - Continued
 (1982=100 unless otherwise indicated)
 ____________________________________________________________________________________________________________________________________
            |                                                       |                       |Unadjusted     |
            |                                                       |                       | percent       |Seasonally adjusted
            |                                                       |   Unadjusted index    |change to      |percent change from:
  Commodity |                                                       |                       |Sept.1997 from:|
    code    |                      Grouping                         |_______________________|_______________|________________________
            |                                                       |       |       |       |       |       |       |       |
            |                                                       | May   |Aug.   |Sept.  | Sept. | Aug.  |June to|July to|Aug. to
            |                                                       |1997 1/|1997 1/|1997 1/| 1996  | 1997  |  July |  Aug. |  Sept.
 ___________|_______________________________________________________|_______|_______|_______|_______|_______|_______|_______|________
            |                                                       |
            | INTERMEDIATE MATERIALS LESS FOODS AND FEEDS           |
            |   -Continued..........................................|
 05-42      |   Commercial electric power...........................| 129.2   136.4   139.5     0      2.3     -1.8    -0.9     2.3
 05-43      |   Industrial electric power...........................| 129.7   133.4   136.1     -.1    2.0       .7     -.8     2.0
 05-52      |   Commercial natural gas (Dec. 1990=100)..............| 102.3   103.5   106.1     6.4    2.5       .8      .1     2.8
 05-53      |   Industrial natural gas (Dec. 1990=100)..............|  99.9    99.6   102.9     6.2    3.3      1.2     -.4     4.9
 05-54      |   Natural gas to electric utilities (Dec. 1990=100)...|  90.3    86.0    85.4     -.6    -.7      1.2    -3.3     -.8
 05-72-03   |   Jet fuels...........................................|  58.7    59.6    58.4   -20.0   -2.0     -3.5     1.8    -5.9
 05-73-03   |   No. 2 Diesel fuel...................................|  63.6    61.7    61.4   -17.8    -.5     -5.0     4.3    -4.8
 05-74      |   Residual fuel 2/....................................|  56.2    53.6    58.0     -.7    8.2     -6.7    -1.8     8.2
 06-1       |   Industrial chemicals 2/.............................| 125.8   127.0   127.3     -.5     .2       .7      .3      .2
 06-21      |   Prepared paint......................................| 152.3   152.4   152.4     2.1    0         .2     0        .4
 06-22      |   Paint materials 2/..................................| 141.3   142.9   142.5     2.1    -.3      -.8     1.8     -.3
 06-31      |   Medicinal and botanical chemicals 2/................| 133.4   133.4   133.2     3.4    -.1       .8     0       -.1
 06-4       |   Fats and oils, inedible 2/..........................| 122.2   121.6   125.0   -22.3    2.8     -2.4    -2.3     2.8
 06-51      |   Mixed fertilizers...................................| 113.9   113.4   113.8     -.4     .4       .9      .4      .6
 06-52-01   |   Nitrogenates........................................| 138.9   129.6   128.1     4.0   -1.2       .7      .7    -1.2
 06-52-02   |   Phosphates 2/.......................................| 111.4   109.9   111.9     -.4    1.8      -.7      .9     1.8
 06-53      |   Other agricultural chemicals........................| 147.3   146.5   146.5     -.5    0        -.5     1.2     -.2
 06-6       |   Plastic resins and materials 2/.....................| 139.1   137.0   136.0    -1.4    -.7      -.1    -1.7     -.7
 07-11-02   |   Synthetic rubber 2/.................................| 120.2   118.7   118.7    -2.2    0        -.7      .3     0
 07-21      |   Plastic construction products 2/....................| 128.4   128.6   127.8    -2.6    -.6      0        .2     -.6
 07-22      |   Unsupported plastic film, sheet, & other shapes.....| 131.8   132.6   132.1     -.5    -.4       .1      .5    -1.1
 07-26      |   Plastic parts and components for manufacturing 2/...| 117.3   117.2   117.0     -.3    -.2       .1     0       -.2
 08-11      |   Softwood lumber 2/..................................| 219.6   207.9   201.5    -1.2   -3.1      -.1    -1.7    -3.1
 08-12      |   Hardwood lumber 2/..................................| 173.3   175.6   176.3     7.8     .4       .9      .1      .4
 08-2       |   Millwork 2/.........................................| 171.2   171.3   171.3     1.5    0         .2     -.1     0
 08-3       |   Plywood 2/..........................................| 158.2   161.4   162.4    -2.6     .6       .1     -.7      .6
 09-11      |   Woodpulp 2/.........................................| 123.5   132.6   132.9     4.0     .2      3.1     3.0      .2
 09-13      |   Paper 2/............................................| 142.8   144.6   145.5     1.4     .6       .9      .2      .6
 09-14      |   Paperboard..........................................| 136.8   142.1   149.8     2.9    5.4       .2     2.8     4.3
 09-15-03   |   Paper boxes and containers 2/.......................| 142.0   140.8   143.7    -3.3    2.1      -.4      .1     2.1
 09-2       |   Building paper and board 2/.........................| 128.1   128.0   128.5    -8.5     .4      -.9     -.5      .4
 09-37      |   Commercial printing (June 1982=100) 2/..............| 147.9   148.6   148.7     -.1     .1       .5     0        .1
 10-15      |   Foundry and forge shop products.....................| 134.2   134.1   134.1     1.1    0         .2     -.1      .1
 10-17      |   Steel mill products 2/..............................| 116.2   116.6   116.9      .5     .3       .1      .1      .3
 10-22      |   Primary nonferrous metals 2/........................| 129.7   127.2   126.6     8.7    -.5     -5.3     1.6     -.5
 10-25-01   |   Aluminum mill shapes 2/.............................| 146.3   147.6   150.3     5.8    1.8      -.6      .2     1.8
 10-25-02   |   Copper and brass mill shapes 2/.....................| 180.6   178.6   173.8     2.5   -2.7     -2.7    -1.8    -2.7
 10-26      |   Nonferrous wire and cable 2/........................| 150.3   148.3   148.2     2.2    -.1      -.7    -1.1     -.1
 10-3       |   Metal containers 2/.................................| 107.9   107.6   107.8    -1.6     .2       .2     -.2      .2
 10-4       |   Hardware............................................| 145.5   146.3   146.3     1.5    0         .1      .3      .2
 10-5       |   Plumbing fixtures and brass fittings................| 175.0   174.7   174.9     1.9     .1       .2     0        .3
 10-6       |   Heating equipment...................................| 151.7   153.1   152.9      .7    -.1       .5     0        .1
 10-7       |   Fabricated structural metal products................| 140.2   140.7   140.7     1.7    0         .2      .1     -.1
 10-88      |   Fabricated ferrous wire products (June 1982=100) 2/.| 127.1   128.5   128.7     1.3     .2       .2      .7      .2
 10-89      |   Other misc. metal products 2/.......................| 126.2   126.2   126.2      .2    0         .1     0       0
 11-45      |   Mechanical power transmission equipment.............| 154.8   154.8   154.8     2.2    0         .1      .2      .2
 11-48      |   Air conditioning and refrigeration equipment........| 132.5   132.9   133.1      .5     .2       .1      .2      .5
 11-49-02   |   Metal valves, ex.fluid power (Dec. 1982=100) 2/.....| 153.1   154.0   153.7     2.5    -.2       .3     -.1     -.2
 11-49-05   |   Ball and roller bearings............................| 163.1   163.6   163.4     3.5    -.1      0        .2      .1
 11-71      |   Wiring devices......................................| 154.3   154.5   154.6     1.8     .1       .3     -.3      .1
 11-73      |   Motors, generators, motor generator sets............| 145.0   144.8   144.5     -.5    -.2      0        .3     -.1
 11-75      |   Switchgear, switchboard, etc., equipment............| 145.6   145.5   145.4     2.0    -.1       .3     -.2      .1
 11-78      |   Electronic components and accessories 2/............| 104.5   103.6   102.9    -4.8    -.7       .2    -1.1     -.7
 11-94      |   Internal combustion engines.........................| 139.8   140.0   140.0      .4    0        -.1     -.1      .1
 11-95      |   Machine shop products 2/............................| 135.0   135.3   135.3      .7    0         .1     0       0
 13-11      |   Flat glass 2/.......................................| 108.2   107.7   107.5    -1.6    -.2      -.1     -.4     -.2
 13-22      |   Cement..............................................| 139.6   140.4   140.3     2.9    -.1       .6      .5      .2
 13-3       |   Concrete products...................................| 136.1   135.8   136.0     1.6     .1       .1     -.1      .1
 13-6       |   Asphalt felts and coatings 2/.......................| 100.2   100.8   100.2      .1    -.6      -.3      .1     -.6
 13-7       |   Gypsum products 2/..................................| 173.6   168.6   169.7     6.5     .7     -1.9     -.2      .7
 13-8       |   Glass containers 2/.................................| 125.5   125.9   125.7    -2.8    -.2      0       0       -.2
 14-12      |   Motor vehicle parts 2/..............................| 115.5   114.7   114.8    -1.3     .1      0       -.6      .1
 14-23      |   Aircraft engines & engine parts (Dec. 1985=100).....| 135.8   135.3   135.3      .4    0         .1     -.2      .2
 14-25      |   Aircraft parts & aux.equip.,nec (June 1985=100) 2/..| 141.8   139.9   140.1      .6     .1      -.6      .1      .1
 15-42      |   Photographic supplies 2/............................| 130.0   129.9   129.9      .2    0        0       2.0     0
 15-6       |   Medical/surgical/personal aid devices...............| 143.1   143.0   142.8      .5    -.1      -.2      .4     -.4
            |                                                       |
            | CRUDE MATERIALS FOR FURTHER PROCESSING................| 110.4   107.8   108.2    -4.2     .4      -.1      .7      .6
            |                                                       |
            |  CRUDE FOODSTUFFS AND FEEDSTUFFS......................| 117.4   111.7   111.1   -11.0    -.5       .3     -.1     -.3
            |                                                       |
 01-21      |   Wheat 2/............................................| 115.2   103.2   104.4   -13.4    1.2    -10.4     4.6     1.2
 01-22-02-05|   Corn................................................| 114.7   104.4   106.2   -27.1    1.7       .6     3.8     4.4
 01-31      |   Slaughter cattle....................................| 101.6    97.3    98.6    -3.8    1.3      2.8     -.3     -.3
 01-32      |   Slaughter hogs......................................| 100.2    93.8    83.6    -7.1  -10.9      2.0    -7.9    -3.3
 01-41-02   |   Slaughter broilers/fryers...........................| 135.4   156.7   147.9    -5.9   -5.6     10.0     1.0    -6.8
 01-42      |   Slaughter turkeys...................................| 119.2   121.9   116.5    -4.0   -4.4     -1.2    -3.7    -6.5
 01-6       |   Fluid milk..........................................|  95.6    93.7    95.3   -20.3    1.7     -3.7     1.6     -.1
 01-83-01-31|   Soybeans............................................| 149.8   124.5   120.6   -14.5   -3.1     -3.0    -5.0    -4.3
 02-52-01-01|   Cane sugar,raw 2/...................................| 115.9   118.6   118.3     -.9    -.3      1.6      .9     -.3
            |                                                       |
            |  CRUDE NONFOOD MATERIALS..............................| 101.8   101.2   102.4     1.6    1.2      -.5     1.3     1.2
            |                                                       |
 01-51-01-01|   Raw cotton..........................................| 115.5   120.5   117.6    -4.5   -2.4      8.4     4.6     -.1
 01-92-01-01|   Leaf tobacco 2/.....................................|   (3)    92.0   101.4    -8.2   10.2      (3)     (3)    10.2
 04-11      |   Cattle hides 2/.....................................| 208.9   186.1   180.3    -3.2   -3.1     -9.0     3.3    -3.1
 05-1       |   Coal 2/.............................................|  95.2    95.0    95.6     2.1     .6     -5.0     2.4      .6
 05-31      |   Natural gas 2/......................................|  83.7    88.0    94.5    23.4    7.4     -2.4     2.4     7.4
 05-61      |   Crude petroleum 2/..................................|  60.2    54.9    53.3   -20.7   -2.9      6.2     0      -2.9
 08-5       |   Logs, timber, etc. 2/...............................| 216.6   217.0   215.7     4.7    -.6       .6     -.3     -.6
 09-12      |   Wastepaper 2/.......................................| 154.0   193.1   183.7    29.2   -4.9      -.2    18.5    -4.9
 10-11      |   Iron ore 2/.........................................|  95.2    95.2    95.2    -1.6    0        0       0       0
 10-12      |   Iron and steel scrap 2/.............................| 185.4   192.6   188.7    -1.6   -2.0      1.6     1.8    -2.0
 10-21      |   Nonferrous metal ores (Dec. 1983=100) 2/............|  87.4    83.3    79.6    -4.7   -4.4     -6.1     -.2    -4.4
 10-23-01   |   Copper base scrap 2/................................| 170.3   156.6   153.9     1.3   -1.7     -7.8    -2.5    -1.7
 10-23-02   |   Aluminum base scrap.................................| 198.9   198.3   193.0    14.6   -2.7     -3.8     2.5    -2.6
 13-21      |   Construction sand, gravel, and crushed stone........| 148.4   148.8   148.7     1.8    -.1      0        .4     0
 ____________________________________________________________________________________________________________________________________
 
 1/  The indexes for May 1997 have been recalculated to incorporate                   2/  Not seasonally adjusted.
     late reports and corrections by respondents.  All indexes are                    3/  Not available.
     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                    |  May 1997 | Aug. 1997 |Sept. 1997 |
 _________|________________________________________________|___________|___________|___________|
          |                                                |           |           |           |
          | Finished Goods (1967=100)......................|   369.4   |   369.6   |   369.9   |
          | All commodities................................|   127.4   |   127.2   |   127.5   |
          |                                                |           |           |           |
          |                                                |           |           |           |
          |            MAJOR COMMODITY GROUPS              |           |           |           |
          |                                                |           |           |           |
          | Farm products and processed foods and feeds....|   129.4   |   126.7   |   126.7   |
 01       |   Farm products................................|   117.4   |   111.4   |   111.5   |
 02       |   Processed foods and feeds....................|   135.4   |   134.3   |   134.2   |
          |                                                |           |           |           |
          | Industrial commodities.........................|   127.0   |   127.2   |   127.6   |
 03       |   Textile products and apparel.................|   122.6   |   122.5   |   122.6   |
 04       |   Hides, skins, leather, and related products..|   156.1   |   152.3   |   152.1   |
 05       |   Fuels and related products and power 2/......|    83.4   |    84.6   |    86.2   |
 06       |   Chemicals and allied products 2/.............|   143.5   |   143.7   |   143.7   |
 07       |   Rubber and plastic products..................|   123.3   |   123.3   |   123.3   |
 08       |   Lumber and wood products.....................|   186.8   |   185.1   |   183.7   |
 09       |   Pulp, paper, and allied products.............|   166.1   |   167.7   |   168.7   |
 10       |   Metals and metal products....................|   132.2   |   132.2   |   132.0   |
 11       |   Machinery and equipment......................|   125.9   |   125.8   |   125.6   |
 12       |   Furniture and household durables.............|   130.9   |   130.9   |   130.9   |
 13       |   Nonmetallic mineral products.................|   133.3   |   133.3   |   133.3   |
 14       |   Transportation equipment.....................|   141.5   |   140.3   |   139.3   |
 15       |   Miscellaneous products.......................|   150.9   |   151.4   |   152.4   |
          |                                                |           |           |           |
          | Industrial commodities less fuels and related  |           |           |           |
          |   products and power...........................|   139.1   |   139.1   |   138.9   |
          |                                                |           |           |           |
          |                                                |           |           |           |
          |             OTHER COMMODITY GROUPINGS          |           |           |           |
          |                                                |           |           |           |
 01-1     | Fruits and melons, fresh and dry vegetables,   |           |           |           |
          |   and tree nuts................................|   117.5   |   108.2   |   112.0   |
 01-2     | Grains.........................................|   116.6   |   106.3   |   107.2   |
 01-3     | Slaughter livestock............................|   102.6   |    97.9   |    95.8   |
 01-4     | Slaughter poultry..............................|   130.9   |   147.9   |   139.9   |
 01-5     | Plant and animal fibers........................|   116.0   |   121.1   |   118.3   |
 01-7     | Chicken eggs...................................|   106.2   |   107.7   |   120.0   |
 01-8     | Hay, hayseeds, and oilseeds....................|   170.4   |   147.0   |   148.8   |
 01-83    | Oilseeds.......................................|   159.1   |   133.9   |   130.2   |
 01-9     | Other farm products............................|  'N.A.'   |   137.2   |   151.2   |
 02-1     | Cereal and bakery products.....................|   158.8   |   157.2   |   157.9   |
 02-2     | Meats, poultry, and fish.......................|   121.6   |   120.8   |   118.9   |
 02-22    | Processed poultry..............................|   117.1   |   119.7   |   119.0   |
 02-5     | Sugar and confectionery........................|   138.4   |   137.9   |   138.6   |
 02-6     | Beverages and beverage materials...............|   138.9   |   139.2   |   138.4   |
 02-63    | Packaged beverage materials....................|   152.8   |   159.7   |   158.1   |
 02-7     | Fats and oils..................................|   130.6   |   128.1   |   129.4   |
 03-81    | Apparel........................................|   125.5   |   125.6   |   125.6   |
 04-4     | Other leather and related products.............|   143.3   |   143.8   |   143.8   |
 05-3     | Gas fuels 2/...................................|    80.0   |    83.5   |    89.2   |
 05-4     | Electric power.................................|   129.8   |   135.1   |   137.3   |
 05-7     | Refined petroleum products.....................|    67.9   |    67.5   |    68.4   |
 06-3     | Drugs and pharmaceuticals......................|   218.3   |   219.1   |   219.0   |
 06-5     | Agricultural chemicals and products............|   134.3   |   131.4   |   131.8   |
 06-7     | Other chemicals and allied products............|   133.0   |   133.4   |   133.5   |
 07-1     | Rubber and rubber products.....................|   116.2   |   115.7   |   115.7   |
 07-11    | Rubber, except natural rubber..................|   119.6   |   118.1   |   118.1   |
 07-13    | Miscellaneous rubber products..................|   138.0   |   138.1   |   137.7   |
 07-2     | Plastic products...............................|   129.9   |   130.1   |   130.1   |
 08-1     | Lumber.........................................|   203.3   |   196.0   |   191.8   |
 09-1     | Pulp, paper, and products, excluding building  |           |           |           |
          |   paper and board..............................|   142.1   |   144.7   |   146.3   |
 09-15    | Converted paper and paperboard products........|   146.7   |   146.9   |   148.2   |
 10-1     | Iron and steel.................................|   126.0   |   126.9   |   126.8   |
 10-2     | Nonferrous metals..............................|   139.1   |   137.4   |   136.5   |
 10-25    | Nonferrous mill shapes.........................|   144.6   |   145.2   |   146.1   |
 11-3     | Metalworking machinery and equipment...........|   145.3   |   145.7   |   145.7   |
 11-4     | General purpose machinery and equipment........|   144.9   |   145.4   |   145.4   |
 11-6     | Special industry machinery.....................|   156.4   |   156.8   |   157.1   |
 11-7     | Electrical machinery and equipment.............|   122.4   |   122.3   |   122.0   |
 11-9     | Miscellaneous machinery and equipment..........|   130.7   |   130.9   |   131.0   |
 12-6     | Other household durable goods..................|   150.2   |   149.9   |   149.2   |
 13-2     | Concrete ingredients...........................|   142.7   |   143.2   |   143.1   |
 14-1     | Motor vehicles and equipment...................|   132.5   |   130.8   |   129.3   |
 15-1     | Toys, sporting goods, small arms, etc..........|   131.6   |   132.1   |   132.1   |
 15-4     | Photographic equipment and supplies............|   119.8   |   119.7   |   119.8   |
 15-9     | Other miscellaneous products...................|   133.4   |   133.8   |   133.7   |
 __________________________________________________________|___________|___________|___________|
 
 1/  Data for May 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_Sep._1997_from:__
     code          |                                              |base |       |       |       |        |
                   |                                              |     |May    |Aug.   |Sep.   |  Sep.  |  Aug.
                   |                                              |     |1997 2/|1997 2/|1997 2/|  1996  |  1997
 __________________|______________________________________________|_____|_______|_______|_______|________|___________
                   |                                              |     |
                   |Total mining industries...................... |12/84|  80.8    80.4    82.0     0.9     2.0
        10         | Metal mining................................ |12/84|  89.7    86.5    83.7    -3.6    -3.2
        12         | Coal mining................................. |12/85|  91.7    91.4    91.6      .8      .2
        13         | Oil and gas extraction...................... |12/85|  80.2    80.0    82.3     1.2     2.9
        14         | Mining and quarrying of non-metallic         |     |
                   |  minerals, except fuels..................... |12/84| 128.3   129.3   129.2     1.3     -.1
                   |                                              |     |
                   |Total manufacturing industries............... |12/84| 127.6   127.3   127.3     -.2     0
        20         | Food and kindred products................... |12/84| 128.9   128.6   128.3    -1.1     -.2
        21         | Tobacco manufactures........................ |12/84| 209.2   209.4   218.6     8.8     4.4
        22         | Textile mill products....................... |12/84| 118.5   118.9   118.9      .3     0
        23         | Apparel and other finished products made     |     |
                   |  from fabrics and similar materials......... |12/84| 123.3   123.4   123.5      .4      .1
        24         | Lumber and wood products, except furniture.. |12/84| 160.7   159.4   158.8     1.4     -.4
        25         | Furniture and fixtures...................... |12/84| 138.2   138.3   138.6     1.6      .2
        26         | Paper and allied products................... |12/84| 131.5   132.5   134.2     -.7     1.3
        27         | Printing, publishing, and allied industries. |12/84| 168.2   168.8   169.1     1.8      .2
        28         | Chemicals and allied products............... |12/84| 147.0   147.0   147.0      .1     0
        29         | Petroleum refining and related products..... |12/84|  85.5    84.9    86.1    -4.2     1.4
        30         | Rubber and miscellaneous plastic products... |12/84| 122.9   123.0   122.9     -.5     -.1
        31         | Leather and leather products................ |12/84| 136.9   137.0   137.5     1.6      .4
        32         | Stone, clay, glass, and concrete products... |12/84| 127.6   127.4   127.3      .8     -.1
        33         | Primary metal industries.................... |12/84| 125.0   125.1   125.2     2.0      .1
        34         | Fabricated metal products, except machinery  |     |
                   |  and transportation equipment............... |12/84| 127.4   127.9   127.9     1.2     0
        35         | Machinery, except electrical................ |12/84| 118.5   118.1   118.1     -.8     0
        36         | Electrical and electronic machinery,         |     |
                   |  equipment, and supplies.................... |12/84| 111.8   111.1   111.2    -1.6      .1
        37         | Transportation equipment.................... |12/84| 133.9   132.8   131.7     -.3     -.8
        38         | Measuring and controlling instruments;       |     |
                   |  photographic, medical, optical goods;       |     |
                   |  watches, clocks............................ |12/84| 125.7   126.0   126.0      .8     0
        39         | Miscellaneous manufacturing industries...... |12/85| 129.1   129.3   129.3      .9     0
                   |                                              |     |
                   |Services industries                           |     |
        40         | Railroad transportation..................... |12/96| 100.2   100.7   101.0     (3)      .3
        42         | Motor freight transportation and warehousing |06/93| 108.8   109.3   109.3     2.5     0
        43         | United states postal service................ |06/89| 132.3   132.3   132.3     0       0
        44         | Water transportation........................ |12/92| 104.3   104.8   104.3      .5     -.5
        45         | Transportation by air....................... |12/92| 125.1   126.1   123.3     1.1    -2.2
        46         | Pipe lines, except natural gas.............. |12/86|  98.9    98.7    98.7    -2.3     0
        80         | Health services............................. |12/94| 105.9   106.1   106.2     1.3      .1
        81         | Legal services.............................. |12/96| 102.1   102.3   102.4     (3)      .1
 ____________________________________________________________________________________________________________________
 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 May 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                                |         |        |        |        |        |        
                                                       |   Apr.  |  May.  |  Jun.  |  Jul.  |  Aug.  |  Sep.    
                                                       |   1997  |  1997  |  1997  |  1997  |  1997  |  1997  
_______________________________________________________|_________|________|________|________|________|__________
      Finished goods...................................|   131.6    131.3    131.1    131.0    131.4    132.0
        Finished consumer goods........................|   129.9    129.6    129.4    129.2    129.7    130.4
          Finished consumer foods......................|   134.7    135.3    134.0    133.7    134.1    134.2
            Crude......................................|   121.8    125.9    116.6    114.6    114.9    120.1
            Processed..................................|   135.6    136.0    135.3    135.1    135.5    135.3
          Finished consumer goods, excluding foods.....|   127.6    127.0    127.2    127.1    127.7    128.6
            Nondurable goods less foods................|   123.2    122.6    123.0    123.1    123.7    124.8
            Durable goods..............................|   134.4    133.6    133.6    132.9    133.3    133.9
        Capital equipment..............................|   138.4    138.1    138.1    138.0    138.0    138.4
          Manufacturing industries.....................|   137.8    137.5    137.6    137.6    137.6    137.8
          Nonmanufacturing industries..................|   138.5    138.2    138.2    138.1    138.1    138.6
                                                       |  
      Intermediate materials, supplies, and components.|   125.5    125.3    125.3    125.1    125.2    125.6
        Materials and components for manufacturing.....|   128.3    128.3    128.4    128.3    128.3    128.4
          Materials for food manufacturing.............|   124.2    123.9    122.7    122.0    122.0    122.7
          Materials for nondurable manufacturing.......|   128.9    129.1    129.2    129.5    129.8    130.3
          Materials for durable manufacturing..........|   133.3    133.4    133.9    133.1    133.1    133.1
          Components for manufacturing.................|   126.6    126.5    126.4    126.5    126.2    126.1
        Materials and components for construction......|   146.6    147.1    147.0    147.1    147.0    146.8
        Processed fuels and lubricants.................|    88.4     87.1     87.4     86.4     87.0     88.2
          Manufacturing industries ....................|    90.8     89.5     89.0     88.9     89.2     91.1
          Nonmanufacturing industries..................|    86.9     85.6     86.3     84.8     85.6     86.3
        Containers.....................................|   135.0    134.6    134.3    133.9    134.0    135.4
        Supplies.......................................|   135.9    136.2    135.9    135.9    135.8    136.2
          Manufacturing industries.....................|   138.9    139.0    138.9    139.3    139.5    139.6
          Nonmanufacturing industries..................|   134.5    134.8    134.4    134.2    133.9    134.4
            Feeds......................................|   134.5    137.1    134.1    130.9    128.0    131.9
            Other supplies.............................|   134.5    134.5    134.5    134.6    134.7    134.8
                                                       |   
      Crude materials for further processing...........|   107.9    110.2    106.8    106.7    107.4    108.0
        Foodstuffs and feedstuffs......................|   117.2    117.0    110.7    111.0    110.9    110.6
        Nonfood materials..............................|    97.8    101.7    100.4     99.9    101.2    102.4
          Nonfood materials except fuel 2/.............|   103.1    105.1    101.1    101.3    102.4    101.1
            Manufacturing 2/...........................|    94.5     96.5     92.4     92.6     93.8     92.5
            Construction...............................|   201.8    202.8    202.5    202.9    202.7    201.8
          Crude fuel 3/................................|    79.6     86.3     89.7     88.2     89.7     95.1
            Manufacturing industries...................|    79.2     85.1     88.0     86.8     88.0     92.8
            Nonmanufacturing industries................|    80.7     87.7     91.3     89.7     91.3     96.9
                                                       |  
                     Special groupings                 |   
                                                       |   
      Finished goods, excluding foods..................|   130.6    130.0    130.2    130.1    130.5    131.3
      Intermediate materials less foods and feeds......|   125.4    125.2    125.3    125.1    125.3    125.6
      Intermediate foods and feeds.....................|   127.7    128.4    126.6    125.1    124.2    125.9
      Crude materials less agricultural products 2/....|    97.3    101.3     99.9     99.2    100.8    101.9
                                                       |        
      Finished energy goods............................|    81.9     80.8     81.2     81.3     82.4     83.6
      Finished goods less energy.......................|   140.3    140.3    140.0    139.8    139.9    140.4
      Finished consumer goods less energy..............|   141.1    141.1    140.7    140.4    140.7    141.1
                                                       |   
      Finished goods less foods and energy.............|   142.5    142.2    142.3    142.1    142.2    142.8
      Finished consumer goods less foods and energy....|   145.1    144.8    144.9    144.7    144.8    145.5
      Consumer nondurable goods less foods and energy..|   152.8    152.9    153.2    153.2    153.3    154.0
                                                       |   
      Intermediate energy goods........................|    88.2     86.9     87.1     86.1     86.7     87.9
      Intermediate materials less energy...............|   133.7    133.8    133.7    133.7    133.7    133.8
      Intermediate materials less foods and energy.....|   134.1    134.2    134.2    134.2    134.3    134.3
                                                       |  
      Crude energy materials 2/........................|    76.4     80.8     79.0     78.7     80.0     82.1
      Crude materials less energy......................|   126.8    127.1    122.7    122.7    122.9    122.3
      Crude nonfood materials less energy 3/...........|   155.3    157.3    157.5    156.7    157.9    156.3
______________________________________________________________________________________________________________

  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 May 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.