FOR DATA ONLY:  (202) 606-7828     USDL 98-239
FOR TECHNICAL INFORMATION:         TRANSMISSION OF MATERIAL IN
(202) 606-7705                     THIS RELEASE IS EMBARGOED
MEDIA CONTACT:  (202) 606-5902     UNTIL 8:30 A.M. (E.D.T), FRIDAY,
http://stats.bls.gov/ppihome.htm   JUNE 12, 1998
                                     
                    Producer Price Indexes -- May 1998

     The Producer Price Index for Finished Goods rose 0.2 percent in May,
seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department
of Labor reported today.  This increase followed a 0.2-percent rise in
April and a decline of 0.3 percent in March.  The index for finished goods
other than foods and energy increased 0.2 percent for the second
consecutive month.  Prices received by producers of intermediate goods
inched down 0.1 percent in May, after showing no change in April.  The
crude goods index fell 0.3 percent, after a 1.0-percent advance in the
prior month.  (See table A.)

     Among finished goods in May, price increases for finished consumer
goods other than foods and energy and for finished energy goods more than
offset price decreases for finished consumer foods and capital equipment.
The index for finished energy goods turned up after falling for seven
consecutive months.

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.)
 1997                                                     
 May     -0.2    0.4   -1.0    -0.2         0.4   -0.1    1.9
 June    -0.2   -0.8   -0.2       0        -0.1   -0.1   -2.7
 July    -0.2   -0.3   -0.5    -0.1        -0.2   -0.2   -0.5
 Aug.     0.2   -0.1    0.9     0.1        -0.2    0.1    0.4
Sept.     0.4      0    1.1     0.4           0    0.2    1.3
 Oct.       0    0.7   -0.5    -0.1        -0.3   -0.1    4.6
 Nov.    -0.2   -0.3   -0.4    -0.1        -0.7    0.2    1.6
 Dec.    -0.2      0   -0.6    -0.1        -1.2   -0.2   -5.6
                                                             
 1998                                                        
 Jan.   r-0.6  r-0.4  r-3.7      r0       r-1.7   -0.6  r-5.8
 Feb.   r-0.2   r0.2  r-1.9     0.1        -1.6   -0.2  r-1.6
 Mar.    -0.3   -0.4   -1.9       0        -1.8   -0.5   -1.6
 Apr.     0.2    0.4   -0.1     0.2        -1.2      0    1.0
 May      0.2   -0.3    0.8     0.2        -0.9   -0.1   -0.3

r=revised.  Some of the figures shown above and elsewhere in this release
may differ from those previously reported because data for January 1998 
have been revised to reflect the availability of late reports and corrections
by respondents.
                                    -2-

     Before seasonal adjustment, the Producer Price Index for Finished
Goods rose 0.3 percent in May to 130.4 (1982=100).  From May 1997 to May
1998, the Finished Goods Price Index decreased 0.9 percent.  During the
same period, prices for finished energy goods declined 7.2 percent, and the
index for finished consumer foods fell 1.3 percent.  By contrast, prices
for finished goods other than foods and energy rose 0.6 percent.  Prices
received by domestic producers of intermediate goods declined 1.6 percent
for the 12 months ending in May, and the index for crude goods fell 9.2
percent during the past 12 months.

Finished goods

     The index for finished consumer goods other than foods and energy
advanced 0.5 percent in May, following a 0.3-percent increase in April.
Price increases for prescription drugs, tobacco products, periodical
circulation, home electronic equipment, and book publishing outweighed
price declines for passenger cars, light motor trucks, cosmetics, and
sanitary paper products.

     The index for finished energy goods increased 0.8 percent, after
declining 0.1 percent in the prior month.  Prices for gasoline rose 4.3
percent, following a 0.6-percent decrease in April.  By contrast, the index
for residential electric power showed no change, after increasing 0.2
percent in the previous month.  Prices for home heating oil, residential
natural gas, and finished lubricants turned down, after rising in April.

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.)
                                                .)
 1997                                                             
 May      0.4   -1.4    0.1       -0.6   -0.9    5.8    1.4     -4.7
 June    -1.3    0.1      0       -0.3   -4.7   -2.0   -0.2     -5.5
 July    -1.7   -0.9    0.1       -0.3   -0.6   -0.1   -0.5     -7.4
 Aug.    -0.4    0.6      0       -0.2   -0.4    0.8    1.3     -7.3
Sept.     1.1    0.6    0.1       -0.6   -0.3    4.4   -0.7     -3.9
 Oct.    -2.4    0.6   -0.1       -0.4    1.1   11.5   -0.1     1.3
 Nov.     1.6      0    0.1       -0.2   -0.1    4.6   -0.4     -0.1
 Dec.    -0.6   -1.5      0       -0.8      0  -13.2   -1.6    -11.3
                                                                  
 1998                                                             
 Jan.   r-3.6   -2.9   -0.1       -1.7   -3.4 r-11.2  r-1.9    r-19.5
 Feb.      r0   -1.2   -0.1       -1.7   -0.7  r-3.5  r-0.1    -13.5
 Mar.    -1.6   -2.4   -0.1       -1.8    0.7   -4.3   -1.9     -7.8
 Apr.    -0.7    0.5      0       -1.6    0.3    3.5   -0.9     -7.3
 May        0   -0.6   -0.1       -1.6   -1.4    0.6    0.5     -9.2

r=revised.  Some of the figures shown above and elsewhere in this release
may differ from those previously reported because data for January 1998 
have been revised to reflect the availability of late reports and
corrections by respondents.
                                    -3-

     Prices for finished consumer foods turned down 0.3 percent in May,
following a 0.4-percent increase a month earlier.  Prices for fresh and dry
vegetables fell 20.9 percent, after rising 6.9 percent in April.  The index
for processed young chickens also turned down, following an increase in the
prior month.  Prices for beef and veal and for fresh fruits and melons rose
less than in the previous month.  By contrast, the index for eggs for fresh
use decreased 0.5 percent, after declining 13.6 percent in April.  Prices
for dairy products turned up, after falling in the previous month.  The
indexes for pork and for finfish and shellfish rose more than a month ago.
     
     The index for capital equipment decreased 0.2 percent, after rising
0.1 percent in April.  Prices for light motor trucks turned down 1.5
percent, following a 0.3-percent gain in the previous month.  The index for
agricultural machinery and equipment also turned down, after rising in the
prior month.  Prices for heavy motor trucks and civilian aircraft increased
less than in April.  The index for communication and related equipment
fell, after showing no change a month ago.  Prices for electronic computers
decreased more than in April.  By contrast, the index for commercial
furniture turned up 0.3 percent, following a 0.4-percent decline in the
prior month.

Intermediate goods

     The Producer Price Index for Intermediate Materials, Supplies, and
Components declined 0.1 percent in May, seasonally adjusted, after showing
no change in April.  The indexes for intermediate energy goods, materials
for durable manufacturing, and materials for nondurable manufacturing fell,
while prices for materials and components for construction and intermediate
foods and feeds showed no change.  Excluding foods and energy, the index
for intermediate materials declined 0.1 percent, after showing no change in
April.  (See table B.)
     
     The index for intermediate energy goods declined 0.6 percent,
following a 0.5-percent advance in April.  Prices for residual fuel
decreased 15.1 percent, after increasing 14.6 percent in the previous
month.  The index for commercial electric power also fell, after rising a
month ago.  Prices for industrial electric power declined, after showing no
change in April.  The index for No. 2 diesel fuel rose less than in the
prior month.  Conversely, prices for gasoline advanced 4.3 percent,
following a 0.6-percent decline a month earlier.  The indexes for liquefied
petroleum gas, natural gas to electric utilities, and industrial natural
gas rose, after falling last month.
     
     The index for durable manufacturing materials declined 0.6 percent,
after showing no change in April.  Prices for primary nonferrous metals
decreased 2.3 percent, following a 1.4-percent increase in the previous
month.  The indexes for copper and brass mill shapes, plywood, and cement
also fell, after rising in the prior month.  Prices for cold rolled sheet
and strip fell more than a month ago.  The index for prepared paint rose
less than last month.  By contrast, prices for aluminum mill shapes showed
no change, following a 1.2-percent decline a month earlier.  The index for
hot rolled sheet and strip fell less than in the previous month.  Prices
for cold finished bars rose, after showing no change in April.
     
     The index for nondurable manufacturing materials declined 0.2 percent
in May, following a similar 0.2-percent decline in April.  Price decreases
for industrial chemicals, paper, plastic resins and materials, processed
yarns and threads, and medicinal and botanical chemicals  outweighed price
increases for fertilizer materials, inedible fats and oils, synthetic
fibers, and paperboard.
                                    -4-

     The index for materials and components for construction showed no
change in May, following a 0.2-percent advance in April.  Prices for
softwood lumber decreased 3.2 percent, after a 0.2-percent decline in the
prior month.  The indexes for nonferrous wire and cable, plywood,
switchgear, cement, and wiring devices fell, following an increase last
month.  By contrast, prices for fabricated structural metal products gained
0.6 percent, after showing no change April.  The index for plastic
construction products advanced, following a decline in the previous month.
Prices for gypsum products increased, after showing no change in the prior
month.  The index for millwork rose more than a month ago.

     The index for intermediate foods and feeds showed no change in May,
following a 0.7-percent decline in April.  Rising prices for beef and veal,
pork, fluid milk products, crude vegetable oils, and butter offset falling
prices for prepared animal feeds, flour, and for natural, processed, and
imitation cheese.

Crude goods

     The Producer Price Index for Crude Materials for Further Processing
turned down 0.3 percent in May, seasonally adjusted, following a 1.0-
percent increase in April.  Prices for crude foodstuffs and feedstuffs
turned down, after increasing a month ago.  The index for crude energy
materials rose less than in the prior month.  On the other hand, prices for
basic industrial materials turned up in May, following a decline a month
ago.  (See table B.)
     
     Prices for crude foodstuffs and feedstuffs decreased 1.4 percent in
May, following a 0.3-percent increase in April.  The index for fluid milk
fell 6.5 percent, after declining 0.3 percent in the previous month.
Prices for slaughter cattle rose less than in the prior month.  The indexes
for slaughter broilers and fryers and for fresh and dry vegetables turned
down, after rising in April.  Conversely, prices for corn declined 4.2
percent, following a 12.4-percent drop a month ago.  The index for wheat
prices also fell less than in the prior month.  The index for soybeans
turned up, after decreasing in the previous month.  Prices for slaughter
hogs increased more than in April.
     
     The index for crude energy materials rose 0.6 percent in May,
following a larger increase of 3.5 percent in April.  Prices for natural
gas increased 0.4 percent, after rising 5.2 percent in the previous month.
The index for crude petroleum also rose less than last month.  By contrast,
prices for coal turned up 0.7 percent, after falling 2.7 percent in the
prior month.
     
     The index for crude nonfood materials less energy increased 0.5
percent in May, following a 0.9-percent decline in April.  Prices for raw
cotton led the upturn with a 9.9-percent advance, after falling 10.2
percent in the prior month.  The indexes for iron and steel scrap and for
copper ores also rose, following a decrease in the previous month.  Prices
for wastepaper and aluminum base scrap fell less than a month ago.  On the
other hand, the index for gold ores declined 1.7 percent, following a 4.8-
percent increase in April.  Prices for cattle hides, copper base scrap, and
pulpwood logs also turned down, after rising in the prior month.
     
Net output price indexes for mining, manufacturing, and other industries

Mining.  The Producer Price Index for the net output of total domestic
mining industries rose 0.4 percent in May, following a 2.2-percent increase
in April.  (Net output price indexes are not seasonally adjusted.)  The
index for the coal mining industry group turned up 0.2 percent, after a 1.9-
percent decline in the prior month.  Prices for the nonmetallic minerals
mining industry group rose 0.3 percent, following a 0.5-percent increase in
the previous month.  The indexes for the metal mining and the oil and gas
extraction industry groups also rose less than a month ago.  In May, the
Producer Price Index for the net output of total domestic mining industries
stood at 73.9 (December 1984=100), 8.5 percent below its year-ago level.

Manufacturing.  The Producer Price Index for the net output of total
domestic manufacturing industries rose 0.2 percent in May, following a 0.2-
percent increase in April.  The index for the chemicals and allied products
industry group advanced 1.1 percent, after declining 0.1 percent in the
prior month.  Prices for the furniture and fixtures and the food and
kindred products industry groups also rose, following a decrease in the
previous month.  By contrast, prices for the lumber and wood products
industry group fell 0.6 percent, after rising 0.3 percent in April.  The
index for the transportation equipment industry group also fell, following
an increase in the previous month.   In May, the Producer Price Index for
the net output of the total domestic manufacturing industries stood at
126.3 (December 1984=100), 1.0 percent below its year-ago level.

Other.  Among other industries in May, prices for offices and clinics of
doctors of medicine increased 0.2 percent, after a 0.2 percent decrease in
April.  The indexes for real estate agents and managers, deep sea foreign
transportation of freight, and truck rental and leasing (without drivers)
also rose, following a decline in the prior month.  Prices for airports and
airport services, passenger car rental (without drivers), and radio
broadcasting increased more than in the previous month.  Conversely, the
index for hotels and motels fell 0.2 percent, following a 1.3-percent
advance in April.  Prices for scheduled air transportation also turned
down, after rising in the prior month.  The index for prepackaged software
fell more than in April.  Prices for legal services showed no change,
following a 0.8-percent gain in the previous month.
     
                                   *****
              Producer Price Index data for June 1998 will be
            released on Friday, July 10, at 8:30 a.m. (E.D.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|                       | May 1998 from:|
                                                 |          |_______________________|_______________|____________________________
                                                 |   Dec.   |       |       |       |       |       |       |         |
                                                 |           Jan.   |Apr.   | May   |   May | Apr.  |Feb. to|Mar.  to |Apr.  to
                                                 |   1997 1/|1998 2/|1998 2/|1998 2/|  1997 | 1998  |  Mar. |   Apr.  |   May
_________________________________________________|__________|_______|_______|_______|_______|_______|_______|_________|__________
                                                 |
Finished goods...................................|  100.000   130.3   130.0   130.4    -0.9    0.3     -0.3      0.2     0.2
  Finished consumer goods........................|   74.755   128.3   127.9   128.6    -1.1     .5      -.4       .3      .2
    Finished consumer foods......................|   23.199   133.1   133.6   133.5    -1.3    -.1      -.4       .4     -.3
      Crude......................................|    1.761   127.1   131.6   121.9    -2.0   -7.4       .2      1.6    -6.4
      Processed..................................|   21.438   133.5   133.8   134.4    -1.1     .4      -.4       .4      .2
    Finished consumer goods, excluding foods.....|   51.556   126.1   125.3   126.4     -.9     .9      -.5       .2      .6
      Nondurable goods less foods................|   35.297   121.5   120.5   122.4     -.9    1.6      -.6       .2     1.1
      Durable goods..............................|   16.259   133.4   133.2   132.0    -1.2    -.9      -.1       .1     -.6
  Capital equipment..............................|   25.245   137.9   137.8   137.3     -.6    -.4      0         .1     -.2
    Manufacturing industries.....................|    6.590   137.9   138.0   137.8      .1    -.1       .1      0       -.1
    Nonmanufacturing industries..................|   18.655   137.9   137.7   137.0     -.9    -.5       .1      0       -.2
                                                 |
Intermediate materials, supplies, and components.|  100.000   124.2   123.3   123.4    -1.6     .1      -.5      0       -.1
  Materials and components for manufacturing.....|   47.584   127.5   127.0   126.8    -1.2    -.2      -.3      -.1     -.1
    Materials for food manufacturing.............|    3.500   119.9   121.8   123.7     -.2    1.6      -.9       .8     1.2
    Materials for nondurable manufacturing.......|   16.157   129.9   128.4   128.0     -.9    -.3      -.5      -.2     -.2
    Materials for durable manufacturing..........|   10.575   130.5   130.0   129.2    -3.1    -.6      -.5      0       -.6
    Components for manufacturing.................|   17.352   126.0   125.9   125.9     -.5    0        0        0       0
  Materials and components for construction......|   13.519   146.3   147.0   147.0     -.1    0        0         .2     0
  Processed fuels and lubricants.................|   13.015    83.3    80.1    81.1    -7.0    1.2     -2.5       .4     -.4
    Manufacturing industries ....................|    4.844    87.1    85.1    85.4    -5.2     .4     -2.0       .6    -1.5
    Nonmanufacturing industries..................|    8.171    80.9    77.1    78.4    -8.2    1.7     -2.8       .3      .3
  Containers.....................................|    3.784   141.4   141.6   141.8     5.3     .1      1.1      -.3      .1
  Supplies.......................................|   22.098   135.5   134.8   134.8    -1.0    0        -.2      -.1     0
    Manufacturing industries.....................|    4.941   140.4   141.0   140.8     1.3    -.1       .1       .3     -.1
    Nonmanufacturing industries..................|   17.157   133.2   132.1   132.1    -2.0    0        -.3      -.2     0
      Feeds......................................|    1.618   115.5   102.6    99.5   -27.3   -3.0     -3.3     -4.6    -3.0
      Other supplies.............................|   15.539   135.5   135.7   136.1     1.2     .3       .1       .1      .4
                                                 |
Crude materials for further processing...........|  100.000   101.7   100.0   100.2    -9.2     .2     -1.6      1.0     -.3
  Foodstuffs and feedstuffs......................|   42.088   105.5   106.2   106.2    -9.5    0         .7       .3    -1.4
  Nonfood materials..............................|   57.912    95.4    92.1    92.4    -9.2     .3     -3.3      1.8      .4
    Nonfood materials except fuel 3/.............|   33.172    93.0    87.8    88.4   -16.0     .7     -6.5      1.0      .9
      Manufacturing 3/...........................|   31.843    84.7    79.7    80.4   -16.9     .9     -6.8      1.0     1.0
      Construction...............................|    1.329   201.1   204.1   200.5    -1.2   -1.8       .5       .9     -.6
    Crude fuel 4/................................|   24.740    91.1    90.6    90.5     4.9    -.1      1.3      2.7     -.1
      Manufacturing industries...................|    2.039    89.8    89.0    89.2     4.8     .2       .6      3.9      .2
      Nonmanufacturing industries................|   22.701    92.8    92.3    92.3     5.2    0        1.4      2.6     0
                                                 |
               Special groupings                 |
                                                 |
Finished goods, excluding foods..................|5/ 76.801   129.4   128.8   129.4     -.8     .5      -.3       .2      .3
Intermediate materials less foods and feeds......|6/ 94.882   124.5   123.7   123.8    -1.2     .1      -.4       .1     -.2
Intermediate foods and feeds.....................|6/  5.118   118.7   116.0   116.3    -9.4     .3     -1.6      -.7     0
Crude materials less agricultural products 3/ 7/.|8/ 55.307    94.8    91.6    91.8    -9.3     .2     -3.2      2.1      .3
                                                 |
Finished energy goods............................|5/ 13.585    77.5    74.7    76.3    -7.2    2.1     -1.9      -.1      .8
Finished goods less energy.......................|5/ 86.415   140.0   140.3   140.5      .1     .1      -.1       .3      .1
Finished consumer goods less energy..............|5/ 61.170   140.8   141.3   141.7      .4     .3      -.1       .4      .2
                                                 |
Finished goods less foods and energy.............|5/ 63.216   142.7   143.0   143.1      .6     .1      0         .2      .2
Finished consumer goods less foods and energy....|5/ 37.971   145.7   146.2   146.9     1.4     .5       .1       .3      .5
Consumer nondurable goods less foods and energy..|5/ 21.712   154.8   156.0   158.2     3.4    1.4       .1       .5     1.5
                                                 |
Intermediate energy goods........................|6/ 13.123    83.0    80.0    80.8    -7.1    1.0     -2.4       .5     -.6
Intermediate materials less energy...............|6/ 86.877   133.3   132.9   132.9     -.7    0        -.2      -.1     -.1
Intermediate materials less foods and energy.....|6/ 81.759   134.3   134.1   134.0     -.1    -.1      -.1      0       -.1
                                                 |
Crude energy materials 3/........................|8/ 36.418    74.9    71.6    72.0   -10.9     .6     -4.3      3.5      .6
Crude materials less energy......................|8/ 63.582   117.0   116.7   116.7    -8.5    0        -.3      -.2     -.8
Crude nonfood materials less energy 4/...........|8/ 21.494   150.5   147.4   147.5    -6.5     .1     -1.9      -.9      .5
                                                 |
_________________________________________________________________________________________________________________________________

  1/  Comprehensive relative importance figures are initially computed          3/  Includes crude petroleum.
      after the publication of December indexes and are recalculated            4/  Excludes crude petroleum.
      after final December indexes are available.  The first-published          5/  Percent of total finished goods.
      and final December relative importances initially appear,                 6/  Percent of total intermediate materials.
      respectively, in the release tables containing January and May data.      7/  Formerly titled "Crude materials for
  2/  The indexes for January 1998 have been recalculated to incorporate            further processing, excluding crude
      late reports and corrections by respondents.  All indexes                     foodstuffs and feedstuffs, plant and
      are subject to revision 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 |                                                       |                       | May 1998 from:|
   code    |                      Grouping                         |_______________________|_______________|________________________
           |                                                       |       |       |       |       |       |       |       |
           |                                                       |Jan.   |Apr.   | May   |  May  | Apr.  |Feb. to|Mar. to|Apr. to
           |                                                       |1998 1/|1998 1/|1998 1/| 1997  | 1998  |  Mar. |  Apr. |   May
___________|_______________________________________________________|_______|_______|_______|_______|_______|_______|_______|________
           |                                                       |
           |FINISHED GOODS.........................................| 130.3   130.0   130.4    -0.9    0.3     -0.3     0.2     0.2
           | FINISHED CONSUMER GOODS...............................| 128.3   127.9   128.6    -1.1     .5      -.4      .3      .2
           |  FINISHED CONSUMER FOODS..............................| 133.1   133.6   133.5    -1.3    -.1      -.4      .4     -.3
           |                                                       |
01-11      |   Fresh fruits and melons 2/..........................|  89.2    88.6    90.6   -18.2    2.3     -8.5     4.7     2.3
01-13      |   Fresh and dry vegetables 2/.........................| 143.1   167.8   132.8    19.3  -20.9      5.5     6.9   -20.9
01-71-07   |   Eggs for fresh use (Dec. 1991=100)..................|  98.3    83.6    71.2   -18.1  -14.8     13.4   -13.6     -.5
02-11      |   Bakery products 2/..................................| 175.3   175.6   175.8     1.2     .1      0        .2      .1
02-13      |   Milled rice 2/......................................| 125.9   122.4   122.2    -4.3    -.2      -.6    -1.2     -.2
02-14-02   |   Pasta products (June 1985=100) 2/...................| 122.1   121.6   121.6    -3.8    0       -2.3      .8     0
02-21-01   |   Beef and veal.......................................|  99.5    99.4   103.7    -1.5    4.3     -4.7     4.7     3.4
02-21-04   |   Pork................................................|  98.5    95.1   103.8   -21.5    9.1     -5.5     2.9     4.2
02-22-03   |   Processed young chickens............................| 113.8   119.0   118.5      .1    -.4      1.5      .4    -1.4
02-22-06   |   Processed turkeys...................................|  93.1    93.4    88.8   -13.7   -4.9      1.7     -.9    -5.0
02-23      |   Finfish and shellfish...............................| 187.4   185.4   189.7     4.9    2.3     -5.2     2.4     4.9
02-3       |   Dairy products......................................| 130.1   131.5   131.5     4.4    0       -1.2    -1.0      .4
02-4       |   Processed fruits and vegetables 2/..................| 124.8   125.3   126.0     -.7     .6      0       0        .6
02-55      |   Confectionery end products 2/.......................| 167.9   168.0   168.3     -.1     .2      0        .1      .2
02-62      |   Soft drinks.........................................| 134.4   134.8   134.0      .4    -.6       .9      .1     -.3
02-63-01   |   Roasted coffee 2/...................................| 151.1   151.6   149.9    -5.6   -1.1       .1      .2    -1.1
02-76      |   Shortening and cooking oils 2/......................| 140.0   142.5   143.0     3.6     .4      -.9     1.6      .4
           |                                                       |
           |  FINISHED CONSUMER GOODS EXCLUDING FOODS..............| 126.1   125.3   126.4     -.9     .9      -.5      .2      .6
           |                                                       |
02-61      |   Alcoholic beverages.................................| 135.1   135.0   134.6    -1.1    -.3       .1     -.4     -.3
03-81-01   |   Women's apparel 2/..................................| 122.2   121.3   121.5      .9     .2       .1      .5      .2
03-81-02   |   Men's and boys' apparel.............................| 133.1   132.7   132.9      .3     .2      -.2      .1      .2
03-81-03   |   Girls', children's, and infants' apparel 2/.........| 122.6   122.9   121.9     -.6    -.8      -.4      .2     -.8
03-82      |   Textile housefurnishings 2/.........................| 123.1   123.1   123.3      .9     .2      0       -.3      .2
04-3       |   Footwear............................................| 144.5   144.7   144.4      .5    -.2       .1      .2     -.1
05-41      |   Residential electric power (Dec. 1990=100)..........| 109.1   108.6   110.0    -1.4    1.3      -.4      .2     0
05-51      |   Residential gas (Dec. 1990=100).....................| 117.5   113.8   112.6     1.5   -1.1      1.8      .1     -.5
05-71      |   Gasoline............................................|  59.4    53.9    58.2   -20.1    8.0     -7.6     -.6     4.3
05-73-02-01|   Fuel oil No. 2......................................|  55.1    51.2    51.2   -22.7    0       -4.5     2.1    -1.1
06-35      |   Pharmaceutical preps, ethical (Prescription)........| 278.4   287.9   319.3    17.1   10.9      1.2     1.3    10.7
06-36      |   Pharmaceutical preps,proprietary (Over-counter).....| 185.0   184.0   184.0     0      0        -.6      .7      .2
06-71      |   Soaps and synthetic detergents 2/...................| 126.2   126.2   126.1     -.2    -.1       .1     -.2     -.1
06-75      |   Cosmetics and other toilet preparations 2/..........| 131.1   132.9   132.4     1.2    -.4      0       1.0     -.4
07-12      |   Tires, tubes, tread, etc 2/.........................|  94.0    94.0    93.8    -2.1    -.2      0       -.2     -.2
09-15-01   |   Sanitary papers and health products 2/..............| 145.8   145.0   144.5     -.8    -.3       .5     -.5     -.3
09-31-01   |   Newspaper circulation 2/............................| 202.3   202.4   202.4      .3    0        0       0       0
09-32-01   |   Periodical circulation..............................| 193.0   191.2   193.7     3.4    1.3       .8     -.4     1.6
09-33      |   Book publishing 2/..................................| 205.3   203.0   205.2     3.6    1.1     -1.7      .3     1.1
12-1       |   Household furniture 2/..............................| 147.4   147.9   148.0     1.4     .1       .1     0        .1
12-3       |   Floor coverings 2/..................................| 128.0   128.3   128.3     1.3    0        -.2      .2     0
12-4       |   Household appliances 2/.............................| 108.3   108.1   108.2    -2.1     .1      -.5     -.2      .1
12-5       |   Home electronic equipment 2/........................|  76.9    75.4    76.8    -1.9    1.9      0       -.5     1.9
12-62      |   Household glassware 2/..............................| 162.0   163.1   163.2      .7     .1       .6      .2      .1
12-64      |   Household flatware 2/...............................| 139.2   139.0   140.4     1.3    1.0       .1     0       1.0
12-66      |   Lawn and garden equip., ex. tractors 2/.............| 131.0   131.3   131.5    -1.1     .2       .4     0        .2
14-11-01   |   Passenger cars......................................| 133.3   132.7   129.7    -2.5   -2.3       .1      .2    -1.7
15-11      |   Toys, games, and children's vehicles................| 125.3   124.0   124.3     -.7     .2       .3     -.2      .2
15-12      |   Sporting and athletic goods 2/......................| 125.8   125.9   126.0     1.0     .1      -.1      .1      .1
15-2       |   Tobacco products 2/.................................| 257.5   270.9   278.4    12.2    2.8      0       3.4     2.8
15-5       |   Mobile homes 2/.....................................| 153.0   153.5   153.9     1.2     .3       .1      .2      .3
15-94-02   |   Jewelry, platinum, & karat gold 2/..................| 128.5   128.0   127.9    -2.1    -.1      -.9     -.2     -.1
15-94-04   |   Costume jewelry and novelties 2/....................| 138.8   138.9   139.6     -.2     .5       .1     0        .5
           |                                                       |
           | CAPITAL EQUIPMENT.....................................| 137.9   137.8   137.3     -.6    -.4      0        .1     -.2
           |                                                       |
11-1       |   Agricultural machinery and equipment 2/.............| 149.7   149.1   148.7     -.1    -.3       .1      .3     -.3
11-2       |   Construction machinery and equipment................| 144.8   144.9   145.2     2.3     .2       .7      .1      .3
11-37      |   Metal cutting machine tools 2/......................| 159.1   159.9   160.1     3.0     .1       .4     -.4      .1
11-38      |   Metal forming machine tools 2/......................| 155.6   157.4   157.6     3.0     .1      1.2      .1      .1
11-39      |   Tools, dies, jigs, fixtures, and ind. molds 2/......| 138.5   138.8   138.8      .5    0         .1     0       0
11-41      |   Pumps, compressors, and equipment...................| 148.3   148.5   148.9     1.6     .3       .1      .1      .3
11-44      |   Industrial material handling equipment 2/...........| 130.4   131.0   131.0     1.1    0         .2      .2     0
11-51      |   Electronic computers (Dec. 1990=100) 2/.............|  28.5    25.9    25.2   -24.6   -2.7     -1.9    -2.3    -2.7
11-62      |   Textile machinery 2/................................| 152.6   153.1   153.1      .4    0         .3     -.1     0
11-64      |   Paper industries machinery (June 1982=100)..........| 159.8   160.6   159.9     2.0    -.4      -.4      .6     -.4
11-65      |   Printing trades machinery 2/........................| 138.8   140.1   140.3     1.6     .1       .5      .4      .1
11-74      |   Transformers and power regulators 2/................| 130.3   130.1   131.1     1.3     .8      -.2     1.2      .8
11-76      |   Communication & related equip. (Dec. 1985=100) 2/...| 114.8   114.8   114.6      .8    -.2      0       0       -.2
11-79-05   |   X-ray and electromedical equipment 2/...............| 107.5   107.3   107.4     0       .1      -.1      .1      .1
11-91      |   Oil field and gas field machinery 2/................| 125.7   125.7   125.8     2.7     .1       .5     -.1      .1
11-92      |   Mining machinery and equipment 2/...................| 141.9   142.8   142.3     1.4    -.4       .4      .2     -.4
11-93      |   Office and store machines and equipment 2/..........| 112.2   112.5   112.5      .1    0         .2      .1     0
12-2       |   Commercial furniture 2/.............................| 154.7   154.9   155.4      .7     .3      -.1     -.4      .3
14-11-05   |   Light motor trucks..................................| 156.3   156.4   152.9    -3.7   -2.2       .2      .3    -1.5
14-11-06   |   Heavy motor trucks 2/...............................| 139.8   141.4   142.0     1.1     .4       .2      .9      .4
14-14      |   Truck trailers 2/...................................| 133.7   135.1   135.4     3.8     .2       .9      .1      .2
14-21-02   |   Civilian aircraft (Dec. 1985=100)...................| 150.1   150.4   150.4      .3    0         .2      .3      .2
14-31      |   Ships (Dec. 1985=100) 2/............................| 145.4   145.8   145.7     3.0    -.1       .1      .1     -.1
14-4       |   Railroad equipment..................................| 134.6   134.8   135.0      .6     .1       .9      .3      .1
           |                                                       |
           |INTERMEDIATE MATERIALS, SUPPLIES, AND COMPONENTS.......| 124.2   123.3   123.4    -1.6     .1      -.5     0       -.1
           |                                                       |
           | INTERMEDIATE FOODS AND FEEDS..........................| 118.7   116.0   116.3    -9.4     .3     -1.6     -.7     0
           |                                                       |
02-12-03   |   Flour 2/............................................| 109.5   112.9   112.1    -9.2    -.7      2.3    -1.1     -.7
02-53      |   Refined sugar 2/....................................| 119.4   121.0   120.8    -3.7    -.2      -.4      .4     -.2
02-54      |   Confectionery materials.............................|  94.0    92.9    93.3   -13.5     .4       .4    -4.8      .1
02-72      |   Crude vegetable oils 2/.............................| 126.1   138.5   143.4    22.1    3.5      3.4     2.4     3.5
02-9       |   Prepared animal feeds 2/............................| 121.2   109.8   107.2   -23.3   -2.4     -2.7    -3.9    -2.4
           |                                                       |
           | INTERMEDIATE MATERIALS LESS FOODS AND FEEDS...........| 124.5   123.7   123.8    -1.2     .1      -.4      .1     -.2
           |                                                       |
03-1       |   Synthetic fibers 2/.................................| 111.2   110.8   111.1     -.2     .3      -.3     0        .3
03-2       |   Processed yarns and threads 2/......................| 113.3   114.5   113.4     -.4   -1.0      -.1     -.3    -1.0
03-3       |   Gray fabrics 2/.....................................| 123.4   123.5   123.0     1.0    -.4      -.4      .7     -.4
03-4       |   Finished fabrics....................................| 123.6   124.9   125.1      .9     .2       .2      .5     0
03-83-03   |   Industrial textile products 2/......................| 130.3   131.0   130.9     2.4    -.1       .1     0       -.1
04-2       |   Leather.............................................| 180.5   178.6   176.8    -3.7   -1.0      -.2     -.6    -1.5
05-32      |   Liquefied petroleum gas 2/..........................|  74.6    62.4    63.3   -14.2    1.4     -6.1    -7.7     1.4
____________________________________________________________________________________________________________________________________
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 |                                                       |                       | May 1998 from:|
   code    |                      Grouping                         |_______________________|_______________|________________________
           |                                                       |       |       |       |       |       |       |       |
           |                                                       |Jan.   |Apr.   | May   |  May  | Apr.  |Feb. to|Mar. to|Apr. to
           |                                                       |1998 1/|1998 1/|1998 1/| 1997  | 1998  |  Mar. |  Apr. |   May
___________|_______________________________________________________|_______|_______|_______|_______|_______|_______|_______|________
           |                                                       |
           | INTERMEDIATE MATERIALS LESS FOODS AND FEEDS           |
           |   -Continued..........................................|
05-42      |   Commercial electric power...........................| 126.8   125.4   126.9    -1.8    1.2     -0.9     0.2    -0.9
05-43      |   Industrial electric power...........................| 127.4   126.3   127.6    -1.6    1.0      -.3     0      -1.5
05-52      |   Commercial natural gas (Dec. 1990=100)..............| 112.0   106.6   106.1     3.7    -.5       .7     1.0     3.0
05-53      |   Industrial natural gas (Dec. 1990=100)..............| 111.4   102.7   103.2     3.3     .5      -.4    -1.0     2.7
05-54      |   Natural gas to electric utilities (Dec. 1990=100)...|  94.4    73.6    73.2   -18.9    -.5       .1   -10.3     2.7
05-72-03   |   Jet fuels...........................................|  54.8    47.2    47.9   -18.4    1.5     -6.1      .6     -.2
05-73-03   |   No. 2 Diesel fuel...................................|  53.9    49.9    50.4   -20.8    1.0     -7.5     3.0      .6
05-74      |   Residual fuel 2/....................................|  51.5    51.0    43.3   -23.0  -15.1    -17.3    14.6   -15.1
06-1       |   Industrial chemicals 2/.............................| 125.8   122.5   121.9    -3.1    -.5     -1.0    -1.0     -.5
06-21      |   Prepared paint......................................| 152.6   155.0   155.1     1.8     .1       .3      .7      .2
06-22      |   Paint materials 2/..................................| 143.0   143.5   143.6     1.6     .1      -.1      .1      .1
06-31      |   Medicinal and botanical chemicals 2/................| 133.3   135.0   133.3     -.1   -1.3      -.1      .1    -1.3
06-4       |   Fats and oils, inedible 2/..........................| 131.9   111.6   125.3     2.5   12.3      3.7    -3.9    12.3
06-51      |   Mixed fertilizers...................................| 116.8   115.5   115.2     1.1    -.3      -.2      .6     -.4
06-52-01   |   Nitrogenates........................................| 116.9   111.2   113.4   -18.4    2.0     -3.7    -1.9     3.0
06-52-02   |   Phosphates 2/.......................................| 109.8   110.9   112.3      .8    1.3       .2      .7     1.3
06-53      |   Other agricultural chemicals........................| 150.9   149.6   149.1     1.2    -.3       .1     -.3     -.3
06-6       |   Plastic resins and materials 2/.....................| 134.0   130.1   129.4    -7.0    -.5     -1.4     -.5     -.5
07-11-02   |   Synthetic rubber 2/.................................| 118.7   117.0   117.5    -2.2     .4     -1.4      .9      .4
07-21      |   Plastic construction products 2/....................| 127.6   126.6   127.6     -.6     .8       .2     -.2      .8
07-22      |   Unsupported plastic film, sheet, & other shapes.....| 130.1   128.8   129.3    -1.9     .4      -.5     0        .3
07-26      |   Plastic parts and components for manufacturing 2/...| 117.3   117.3   117.2     -.1    -.1       .3     -.1     -.1
08-11      |   Softwood lumber 2/..................................| 190.9   193.4   187.3   -14.7   -3.2      -.3     -.2    -3.2
08-12      |   Hardwood lumber 2/..................................| 179.1   179.8   178.9     3.2    -.5      -.2      .2     -.5
08-2       |   Millwork 2/.........................................| 170.9   170.8   171.2     0       .2      -.1      .1      .2
08-3       |   Plywood 2/..........................................| 152.9   152.4   151.6    -4.2    -.5     -1.4      .7     -.5
09-11      |   Woodpulp 2/.........................................| 130.7   122.8   122.9     -.5     .1      -.9    -2.0      .1
09-13      |   Paper...............................................| 147.9   147.0   146.1     2.3    -.6       .1     -.1     -.6
09-14      |   Paperboard..........................................| 155.9   155.5   154.6    13.0    -.6       .8    -1.0      .1
09-15-03   |   Paper boxes and containers 2/.......................| 154.9   155.6   156.3    10.1     .4      1.7     -.4      .4
09-2       |   Building paper and board 2/.........................| 127.3   130.2   131.6     2.7    1.1     -3.4     2.4     1.1
09-37      |   Commercial printing (June 1982=100) 2/..............| 151.0   152.3   152.0     2.8    -.2       .1      .5     -.2
10-15      |   Foundry and forge shop products.....................| 134.7   135.0   135.1      .7     .1      -.1      .1      .1
10-17      |   Steel mill products 2/..............................| 115.9   115.2   114.7    -1.3    -.4      -.3     -.6     -.4
10-22      |   Primary nonferrous metals 2/........................| 113.7   112.5   109.9   -15.3   -2.3     -1.9     1.4    -2.3
10-25-01   |   Aluminum mill shapes 2/.............................| 147.5   144.1   144.1    -1.5    0        -.5    -1.2     0
10-25-02   |   Copper and brass mill shapes 2/.....................| 159.7   160.1   156.7   -13.2   -2.1      -.4      .3    -2.1
10-26      |   Nonferrous wire and cable 2/........................| 143.2   142.7   141.3    -6.0   -1.0       .5      .2    -1.0
10-3       |   Metal containers 2/.................................| 109.1   109.1   108.9      .9    -.2       .5     -.3     -.2
10-4       |   Hardware............................................| 146.5   146.9   147.0     1.0     .1      -.1      .1      .1
10-5       |   Plumbing fixtures and brass fittings................| 174.2   175.8   176.1      .6     .2      -.2      .1      .2
10-6       |   Heating equipment...................................| 152.8   153.7   153.6     1.3    -.1      -.5      .2     0
10-7       |   Fabricated structural metal products................| 141.4   141.9   142.7     1.8     .6       .1     0        .6
10-88      |   Fabricated ferrous wire products (June 1982=100) 2/.| 129.3   129.8   130.2     2.4     .3       .2      .1      .3
10-89      |   Other misc. metal products 2/.......................| 126.4   126.5   126.6      .3     .1       .1     0        .1
11-45      |   Mechanical power transmission equipment.............| 157.1   157.1   157.4     1.7     .2       .1      .1      .3
11-48      |   Air conditioning and refrigeration equipment........| 133.2   133.4   133.7      .9     .2      -.1      .4      .4
11-49-02   |   Metal valves, ex.fluid power (Dec. 1982=100) 2/.....| 154.1   156.3   156.3     2.1    0         .5      .4     0
11-49-05   |   Ball and roller bearings............................| 164.5   164.8   164.6      .9    -.1      0        .2      .1
11-71      |   Wiring devices......................................| 154.3   154.5   154.1     -.1    -.3      -.4      .1     -.3
11-73      |   Motors, generators, motor generator sets............| 145.5   145.6   145.7      .5     .1       .4      .3      .1
11-75      |   Switchgear, switchboard, etc., equipment............| 147.8   147.9   147.6     1.4    -.2      -.5      .7     -.1
11-78      |   Electronic components and accessories 2/............| 101.1   100.6   100.6    -3.7    0        0       -.5     0
11-94      |   Internal combustion engines.........................| 140.2   140.4   140.4      .4    0         .1      .2      .1
11-95      |   Machine shop products 2/............................| 135.5   135.8   135.7      .5    -.1      -.1      .1     -.1
13-11      |   Flat glass 2/.......................................| 108.0   107.3   107.0    -1.1    -.3      -.1     -.1     -.3
13-22      |   Cement..............................................| 140.6   145.2   145.4     4.2     .1       .3     1.1     -.1
13-3       |   Concrete products...................................| 136.9   139.1   140.2     3.0     .8      0        .9      .8
13-6       |   Asphalt felts and coatings 2/.......................|  98.7    99.2    99.6     -.6     .4      -.1      .8      .4
13-7       |   Gypsum products 2/..................................| 172.0   172.1   173.9      .2    1.0       .3     0       1.0
13-8       |   Glass containers 2/.................................| 125.9   125.9   125.9      .3    0        0       0       0
14-12      |   Motor vehicle parts 2/..............................| 114.9   114.6   114.5     -.9    -.1      0       -.1     -.1
14-23      |   Aircraft engines & engine parts (Dec. 1985=100).....| 136.2   136.9   137.1     1.0     .1       .3     1.6     0
14-25      |   Aircraft parts & aux.equip.,nec (June 1985=100) 2/..| 141.7   141.2   141.3     -.4     .1      -.4      .2      .1
15-42      |   Photographic supplies 2/............................| 128.4   129.0   129.0     -.8    0        -.7      .8     0
15-6       |   Medical/surgical/personal aid devices...............| 143.1   144.0   143.4      .2    -.4      -.1      .1     -.4
           |                                                       |
           | CRUDE MATERIALS FOR FURTHER PROCESSING................| 101.7   100.0   100.2    -9.2     .2     -1.6     1.0     -.3
           |                                                       |
           |  CRUDE FOODSTUFFS AND FEEDSTUFFS......................| 105.5   106.2   106.2    -9.5    0         .7      .3    -1.4
           |                                                       |
01-21      |   Wheat 2/............................................|  94.7    92.6    92.3   -19.9    -.3      1.8    -5.0     -.3
01-22-02-05|   Corn................................................| 106.3    98.4    96.7   -15.7   -1.7     -2.6   -12.4    -4.2
01-31      |   Slaughter cattle....................................|  95.6    98.4    97.5    -4.0    -.9      3.7     4.7     1.0
01-32      |   Slaughter hogs......................................|  55.7    57.7    69.7   -30.4   20.8     -5.8     5.6     7.8
01-41-02   |   Slaughter broilers/fryers...........................| 125.1   138.0   141.6     4.6    2.6      8.2     4.8    -6.8
01-42      |   Slaughter turkeys...................................|  89.8    99.9    99.0   -16.9    -.9      5.5    -1.0    -3.8
01-6       |   Fluid milk..........................................| 105.9   104.3    98.1     2.6   -5.9      -.6     -.3    -6.5
01-83-01-31|   Soybeans 2/.........................................| 113.2   107.8   110.2   -26.4    2.2     -3.1    -4.9     2.2
02-52-01-01|   Cane sugar,raw 2/...................................| 116.6   117.6   118.0     1.8     .3      -.6     1.6      .3

           |                                                       |
           |  CRUDE NONFOOD MATERIALS..............................|  95.4    92.1    92.4    -9.2     .3     -3.3     1.8      .4
           |                                                       |
01-51-01-01|   Raw cotton..........................................| 103.3   101.2   108.0    -6.5    6.7     -3.6   -10.2     9.9
01-92-01-01|   Leaf tobacco 2/.....................................| 112.9    99.3     (3)     (3)    (3)     -9.5    -4.8     (3)
04-11      |   Cattle hides 2/.....................................| 156.0   152.2   151.5   -27.5    -.5     -6.0     4.7     -.5
05-1       |   Coal 2/.............................................|  91.7    91.8    92.4    -2.9     .7      1.3    -2.7      .7
05-31      |   Natural gas 2/......................................|  90.9    89.3    89.7     7.2     .4      1.1     5.2      .4
05-61      |   Crude petroleum 2/..................................|  43.4    38.2    38.3   -36.4     .3    -17.1     6.4      .3
08-5       |   Logs, timber, etc...................................| 214.3   218.0   213.7    -1.3   -2.0       .8     1.0     -.8
09-12      |   Wastepaper 2/.......................................| 163.5   153.1   150.1    -2.5   -2.0     -1.0    -5.7    -2.0
10-11      |   Iron ore 2/.........................................|  95.2    95.2    95.9      .7     .7      0       0        .7
10-12      |   Iron and steel scrap 2/.............................| 197.3   183.1   184.1     -.7     .5     -4.1    -1.2      .5
10-21      |   Nonferrous metal ores (Dec. 1983=100) 2/............|  67.2    69.8    69.9   -20.0     .1     -2.0     1.9      .1
10-23-01   |   Copper base scrap 2/................................| 122.7   128.7   128.4   -24.6    -.2       .6     4.3     -.2
10-23-02   |   Aluminum base scrap.................................| 185.8   177.4   172.7   -13.2   -2.6     -1.4    -1.4     -.8
13-21      |   Construction sand, gravel, and crushed stone........| 150.2   152.0   152.6     2.8     .4       .1      .5      .5
____________________________________________________________________________________________________________________________________

1/  The indexes for January 1998 have been recalculated to incorporate                      2/  Not seasonally adjusted.
    late reports and corrections by respondents. All indexes                                3/  Not available.
    are subject to revision four months after original publication.
Table 3.  Producer price indexes for selected commodity groupings
(1982=100 unless otherwise indicated)
_______________________________________________________________________________________________
         |                                                |                                   |
         |                                                |         Unadjusted index 1/       |
Commodity|                                                |___________________________________|
  code   |                    Grouping                    | Jan. 1998 |April 1998 |  May 1998 |
_________|________________________________________________|___________|___________|___________|
         |                                                |           |           |           |
         | Finished Goods (1967=100)......................|   365.7   |   364.8   |   365.9   |
         | All commodities................................|   125.4   |   124.7   |   124.9   |
         |                                                |           |           |           |
         |                                                |           |           |           |
         |            MAJOR COMMODITY GROUPS              |           |           |           |
         |                                                |           |           |           |
         | Farm products and processed foods and feeds....|   123.0   |   122.9   |   122.9   |
01       |   Farm products................................|   106.3   |   106.8   |   105.6   |
02       |   Processed foods and feeds....................|   131.3   |   130.8   |   131.5   |
         |                                                |           |           |           |
         | Industrial commodities.........................|   125.9   |   125.0   |   125.3   |
03       |   Textile products and apparel.................|   123.2   |   123.3   |   123.3   |
04       |   Hides, skins, leather, and related products..|   148.8   |   148.0   |   147.4   |
05       |   Fuels and related products and power 2/......|    78.6   |    75.5   |    76.6   |
06       |   Chemicals and allied products 2/.............|   143.4   |   142.6   |   144.4   |
07       |   Rubber and plastic products..................|   123.1   |   122.9   |   122.9   |
08       |   Lumber and wood products.....................|   181.1   |   182.5   |   180.5   |
09       |   Pulp, paper, and allied products.............|   172.3   |   172.3   |   172.3   |
10       |   Metals and metal products....................|   130.1   |   129.5   |   129.3   |
11       |   Machinery and equipment......................|   125.5   |   125.2   |   125.1   |
12       |   Furniture and household durables.............|   130.8   |   130.8   |   131.2   |
13       |   Nonmetallic mineral products.................|   133.6   |   134.8   |   135.2   |
14       |   Transportation equipment.....................|   141.4   |   141.3   |   140.2   |
15       |   Miscellaneous products.......................|   152.3   |   154.6   |   155.8   |
         |                                                |           |           |           |
         | Industrial commodities less fuels and related  |           |           |           |
         |   products and power...........................|   139.3   |   139.3   |   139.2   |
         |                                                |           |           |           |
         |                                                |           |           |           |
         |             OTHER COMMODITY GROUPINGS          |           |           |           |
         |                                                |           |           |           |
01-1     | Fruits and melons, fresh and dry vegetables,   |           |           |           |
         |   and tree nuts................................|   118.0   |   127.4   |   114.6   |
01-2     | Grains.........................................|   104.4   |    99.8   |    98.7   |
01-3     | Slaughter livestock............................|    85.6   |    87.9   |    90.7   |
01-4     | Slaughter poultry..............................|   116.9   |   128.5   |   131.1   |
01-5     | Plant and animal fibers........................|   104.1   |   101.5   |   107.9   |
01-7     | Chicken eggs...................................|   117.4   |    99.5   |    83.8   |
01-8     | Hay, hayseeds, and oilseeds....................|   136.6   |   131.7   |   135.0   |
01-83    | Oilseeds.......................................|   123.9   |   118.1   |   121.0   |
01-9     | Other farm products............................|   168.3   |   148.2   |  'N.A.'   |
02-1     | Cereal and bakery products.....................|   157.3   |   157.7   |   157.6   |
02-2     | Meats, poultry, and fish.......................|   112.3   |   112.0   |   115.0   |
02-22    | Processed poultry..............................|   113.6   |   117.0   |   115.7   |
02-5     | Sugar and confectionery........................|   134.0   |   134.1   |   134.4   |
02-6     | Beverages and beverage materials...............|   137.8   |   138.1   |   137.4   |
02-63    | Packaged beverage materials....................|   146.5   |   146.9   |   145.5   |
02-7     | Fats and oils..................................|   135.2   |   143.4   |   147.8   |
03-81    | Apparel........................................|   126.6   |   126.2   |   126.2   |
04-4     | Other leather and related products.............|   144.8   |   145.1   |   145.2   |
05-3     | Gas fuels 2/...................................|    85.5   |    81.2   |    81.7   |
05-4     | Electric power.................................|   127.3   |   126.3   |   127.8   |
05-7     | Refined petroleum products.....................|    57.4   |    52.8   |    54.7   |
06-3     | Drugs and pharmaceuticals......................|   221.6   |   226.6   |   239.9   |
06-5     | Agricultural chemicals and products............|   130.7   |   129.1   |   129.8   |
06-7     | Other chemicals and allied products............|   133.9   |   134.5   |   134.4   |
07-1     | Rubber and rubber products.....................|   115.5   |   115.3   |   115.2   |
07-11    | Rubber, except natural rubber..................|   118.0   |   116.4   |   116.9   |
07-13    | Miscellaneous rubber products..................|   138.6   |   138.7   |   138.5   |
07-2     | Plastic products...............................|   130.0   |   129.8   |   129.7   |
08-1     | Lumber.........................................|   185.3   |   187.2   |   182.8   |
09-1     | Pulp, paper, and products, excluding building  |           |           |           |
         |   paper and board..............................|   149.5   |   148.5   |   148.1   |
09-15    | Converted paper and paperboard products........|   152.9   |   152.7   |   152.9   |
10-1     | Iron and steel.................................|   127.0   |   125.2   |   125.0   |
10-2     | Nonferrous metals..............................|   128.0   |   127.2   |   125.9   |
10-25    | Nonferrous mill shapes.........................|   141.4   |   139.5   |   138.6   |
11-3     | Metalworking machinery and equipment...........|   146.5   |   147.1   |   147.2   |
11-4     | General purpose machinery and equipment........|   146.1   |   146.6   |   146.7   |
11-6     | Special industry machinery.....................|   158.0   |   158.8   |   158.9   |
11-7     | Electrical machinery and equipment.............|   121.8   |   121.5   |   121.4   |
11-9     | Miscellaneous machinery and equipment..........|   131.4   |   131.6   |   131.5   |
12-6     | Other household durable goods..................|   150.4   |   150.9   |   151.2   |
13-2     | Concrete ingredients...........................|   144.2   |   147.0   |   147.4   |
14-1     | Motor vehicles and equipment...................|   132.0   |   131.8   |   130.1   |
15-1     | Toys, sporting goods, small arms, etc..........|   132.4   |   132.0   |   132.3   |
15-4     | Photographic equipment and supplies............|   113.5   |   115.3   |   116.3   |
15-9     | Other miscellaneous products...................|   134.4   |   134.3   |   134.7   |
__________________________________________________________|___________|___________|___________|

1/  Data for January 1998 have been revised to reflect the availability of late reports and
    corrections by respondents.  All data are subject to revision four months after 
    original publication.

2/  Prices of some items in this grouping are lagged 1 month.
Table 4.  Producer price indexes for the net output of major industry groups, not seasonally adjusted
 ____________________________________________________________________________________________________________________
                   |                                              |     |         Index         |  Percent change
   Industry        |                Industry 1/                   |Index|_______________________|to_May__1998_from:__
     code          |                                              |base |       |       |       |        |
                   |                                              |     |Jan.   |Apr.   |May    |  May   |  Apr.
                   |                                              |     |1998 2/|1998 2/|1998 2/|  1997  |  1998
 __________________|______________________________________________|_____|_______|_______|_______|________|___________
                   |                                              |     |
                   |Total mining industries...................... |12/84|  76.4    73.6    73.9    -8.5     0.4
        10         | Metal mining................................ |12/84|  73.5    76.0    76.1   -15.2      .1
        12         | Coal mining................................. |12/85|  88.2    88.6    88.8    -3.2      .2
        13         | Oil and gas extraction...................... |12/85|  76.2    72.0    72.3    -9.9      .4
        14         | Mining and quarrying of non-metallic         |     |
                   |  minerals, except fuels..................... |12/84| 130.6   132.0   132.4     3.2      .3
                   |                                              |     |
                   |Total manufacturing industries............... |12/84| 126.4   126.0   126.3    -1.0      .2
        20         | Food and kindred products................... |12/84| 125.8   125.4   125.8    -2.4      .3
        21         | Tobacco manufactures........................ |12/84| 219.6   230.9   237.7    13.6     2.9
        22         | Textile mill products....................... |12/84| 119.0   119.6   119.3      .7     -.3
        23         | Apparel and other finished products made     |     |
                   |  from fabrics and similar materials......... |12/84| 124.4   124.5   124.7     1.1      .2
        24         | Lumber and wood products, except furniture.. |12/84| 157.4   158.4   157.4    -2.1     -.6
        25         | Furniture and fixtures...................... |12/84| 139.1   139.3   139.6     1.0      .2
        26         | Paper and allied products................... |12/84| 137.7   137.2   137.0     4.2     -.1
        27         | Printing, publishing, and allied industries. |12/84| 173.2   173.8   174.1     3.5      .2
        28         | Chemicals and allied products............... |12/84| 147.3   146.8   148.4     1.0     1.1
        29         | Petroleum refining and related products..... |12/84|  73.8    68.1    70.1   -18.0     2.9
        30         | Rubber and miscellaneous plastic products... |12/84| 122.7   122.5   122.5     -.3     0
        31         | Leather and leather products................ |12/84| 137.4   137.1   137.1      .1     0
        32         | Stone, clay, glass, and concrete products... |12/84| 127.6   128.5   129.1     1.2      .5
        33         | Primary metal industries.................... |12/84| 123.3   122.5   122.0    -2.4     -.4
        34         | Fabricated metal products, except machinery  |     |
                   |  and transportation equipment............... |12/84| 128.3   128.6   128.8     1.1      .2
        35         | Machinery, except electrical................ |12/84| 118.1   117.9   117.6     -.8     -.3
        36         | Electrical and electronic machinery,         |     |
                   |  equipment, and supplies.................... |12/84| 110.8   110.4   110.4    -1.3     0
        37         | Transportation equipment.................... |12/84| 133.8   133.9   132.7     -.9     -.9
        38         | Measuring and controlling instruments;       |     |
                   |  photographic, medical, optical goods;       |     |
                   |  watches, clocks............................ |12/84| 125.6   126.2   126.4      .6      .2
        39         | Miscellaneous manufacturing industries...... |12/85| 129.6   129.5   129.6      .4      .1
                   |                                              |     |
                   |Services industries                           |     |
        40         | Railroad transportation..................... |12/96| 101.8   102.2   102.2     2.0     0
        42         | Motor freight transportation and warehousing |06/93| 110.5   111.0   111.1     2.1      .1
        43         | United states postal service................ |06/89| 132.3   132.3   132.3     0       0
        44         | Water transportation........................ |12/92| 103.0   101.6   102.4    -1.8      .8
        45         | Transportation by air....................... |12/92| 122.6   125.1   124.7     -.3     -.3
        46         | Pipe lines, except natural gas.............. |12/86|  99.3    99.4    99.4      .5     0
        80         | Health services............................. |12/94| 107.0   107.2   107.4     1.4      .2
        81         | Legal services.............................. |12/96| 105.1   105.9   105.9     3.7     0
 ____________________________________________________________________________________________________________________
 1/ Indexes in this table are derived from the net-output-weighted industry price indexes.  Because of differences 
    in coverage and aggregation methodology, they will generally not match the movements of similarly-titled
    indexes which are derived from traditional commodity groupings.
 2/ The indexes for January 1998 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                                |         |        |        |        |        |        
                                                       |   Dec.  |  Jan.  |  Feb.  |  Mar.  |  Apr.  |  May 
                                                       |   1997  |  1998  |  1998  |  1998  |  1998  |  1998
_______________________________________________________|_________|________|________|________|________|__________
      Finished goods...................................|  131.4    130.6    130.4    130.0    130.3    130.5    
        Finished consumer goods........................|  129.8    128.8    128.5    128.0    128.4    128.7
          Finished consumer foods......................|  134.3    133.8    134.1    133.6    134.2    133.8
            Crude......................................|  133.2    129.5    130.4    130.6    132.7    124.2
            Processed..................................|  134.3    134.1    134.3    133.8    134.3    134.6
          Finished consumer goods, excluding foods.....|  127.7    126.5    126.0    125.4    125.7    126.4
            Nondurable goods less foods................|  124.0    122.3    121.5    120.8    121.1    122.4
            Durable goods..............................|  132.9    132.8    133.0    132.9    133.0    132.2
        Capital equipment..............................|  137.7    137.6    137.6    137.6    137.7    137.4
          Manufacturing industries.....................|  137.6    137.8    137.8    137.9    137.9    137.8
          Nonmanufacturing industries..................|  137.7    137.5    137.4    137.5    137.5    137.2
                                                       |  
      Intermediate materials, supplies, and components.|  125.3    124.5    124.2    123.6    123.6    123.5
        Materials and components for manufacturing.....|  128.0    127.5    127.4    127.0    126.9    126.8
          Materials for food manufacturing.............|  123.2    120.5    122.5    121.4    122.4    123.9
          Materials for nondurable manufacturing.......|  130.0    129.8    129.3    128.6    128.3    128.0
          Materials for durable manufacturing..........|  131.4    130.5    130.6    129.9    129.9    129.1
          Components for manufacturing.................|  126.0    126.0    125.9    125.9    125.9    125.9
        Materials and components for construction......|  146.5    146.3    146.6    146.6    146.9    146.9
        Processed fuels and lubricants.................|   87.2     84.8     83.8     81.7     82.0     81.7
          Manufacturing industries ....................|   90.9     88.5     88.1     86.3     86.8     85.5
          Nonmanufacturing industries..................|   84.9     82.5     81.2     78.9     79.1     79.3
        Containers.....................................|  139.8    141.3    140.6    142.1    141.7    141.8
        Supplies.......................................|  136.1    135.4    135.2    134.9    134.7    134.7
          Manufacturing industries.....................|  140.2    140.3    140.4    140.6    141.0    140.8
          Nonmanufacturing industries..................|  133.9    133.1    132.7    132.3    132.0    132.0
            Feeds......................................|  123.1    115.4    111.1    107.4    102.5     99.4
            Other supplies.............................|  135.5    135.4    135.4    135.5    135.6    136.1
                                                       |  
      Crude materials for further processing...........|  108.6    102.3    100.7     99.1    100.1     99.8
        Foodstuffs and feedstuffs......................|  110.6    106.8    106.0    106.7    107.0    105.5
        Nonfood materials..............................|  103.4     95.4     93.3     90.2     91.8     92.2
          Nonfood materials except fuel 2/.............|   99.2     93.1     92.4     86.4     87.3     88.1
            Manufacturing 2/...........................|   90.6     84.8     84.2     78.5     79.3     80.1
            Construction...............................|  200.5    200.0    197.4    198.3    200.1    198.8
          Crude fuel 3/................................|  100.9     91.1     87.1     88.2     90.6     90.5
            Manufacturing industries...................|   97.9     89.8     85.2     85.7     89.0     89.2
            Nonmanufacturing industries................|  103.0     92.8     88.8     90.0     92.3     92.3
                                                       |  
                     Special groupings                 |  
                                                       |  
      Finished goods, excluding foods..................|  130.4    129.6    129.2    128.8    129.0    129.4
      Intermediate materials less foods and feeds......|  125.4    124.8    124.5    124.0    124.1    123.9
      Intermediate foods and feeds.....................|  123.5    119.1    119.1    117.2    116.4    116.4
      Crude materials less agricultural products 2/....|  102.9     94.8     92.5     89.5     91.4     91.7
                                                       |  
      Finished energy goods............................|   81.9     78.9     77.4     75.9     75.8     76.4
      Finished goods less energy.......................|  140.2    140.0    140.1    140.0    140.4    140.6
      Finished consumer goods less energy..............|  141.0    140.9    141.1    140.9    141.5    141.8
                                                       |  
      Finished goods less foods and energy.............|  142.4    142.4    142.5    142.5    142.8    143.1
      Finished consumer goods less foods and energy....|  145.4    145.4    145.5    145.6    146.1    146.9
      Consumer nondurable goods less foods and energy..|  154.6    154.7    154.8    155.0    155.8    158.1
                                                       |  
      Intermediate energy goods........................|   87.0     84.5     83.5     81.5     81.9     81.4
      Intermediate materials less energy...............|  133.7    133.3    133.2    133.0    132.9    132.8
      Intermediate materials less foods and energy.....|  134.4    134.2    134.1    134.0    134.0    133.9
                                                       |  
      Crude energy materials 2/........................|   84.3     74.9     72.3     69.2     71.6     72.0
      Crude materials less energy......................|  121.4    118.0    117.4    117.1    116.9    116.0
      Crude nonfood materials less energy 3/...........|  153.5    150.6    150.4    147.5    146.1    146.8
______________________________________________________________________________________________________________

  1/  All seasonally adjusted indexes are subject to change up to five years after original publication 
      due to the recalculation of seasonal factors each January.  The indexes for January 1998 have been
      recalculated to incorporate late reports and corrections by respondents.  
  2/  Includes crude petroleum.
  3/  Excludes crude petroleum.

Technical Notes





Brief Explanation of
Producer Price Indexes

     Producer price indexes (PPI) measure average changes in
prices received by domestic producers of commodities in all
stages of processing. Most of the information used in
calculating the indexes is obtained through the systematic
sampling of nearly every industry in the manufacturing and
mining sectors of the economy. The PPI program also includes
some information from other sectors--agriculture, fishing,
forestry, services, and gas and electricity. Because
producer price indexes are designed to measure only the
change in prices received for the output of domestic
industries, imports are not included. The sample currently
contains about 3,200 commodities and 80,000 quotations per
month.
     There are three primary systems of indexes within the
PPI program: (1) Stage of processing indexes; (2) commodity
indexes; and (3) indexes for the net output of industries
and their products. The stage-of-processing structure
(tables 1 and 2) organizes products by class of buyer and
degree of processing. The commodity structure (tables 2 and
3) organizes products by similarity of end-use or material
composition. The entire output of various industries is
sampled to derive price indexes for the net output of
industries and their products (table 4).
     Within the stage-of-processing system, finished goods
are commodities that will not undergo further processing and
are ready for sale to the final demand user, either an
individual consumer or business firm. Consumer foods include
unprocessed foods such as eggs and fresh vegetables, as well
as processed foods such as bakery products and meats. Other
finished consumer goods include durable goods such as
automobiles, household furniture, and appliances, and
nondurable goods such as apparel and home heating oil.
Capital equipment includes producer durable goods such as
heavy motor trucks, tractors, and machine tools.
     The stage-of-processing category for intermediate
materials, supplies, and components consists partly of
commodities that have been processed but require further
processing. Examples of such semifinished goods include
flour, cotton yarn, steel mill products, and lumber. The
intermediate goods category also encompasses nondurable,
physically complete items purchased by business firms as
inputs for their operations. Examples include diesel fuel,
belts and belting, paper boxes, and fertilizers.
     Crude materials for further processing are products
entering the market for the first time that have not been
manufactured or fabricated and that are not sold directly to
consumers. Crude foodstuffs and feedstuffs include items
such as grains and livestock. Examples of crude nonfood
materials include raw cotton, crude petroleum, coal, hides
and skins, and iron and steel scrap.
     Producer price indexes for the net output of industries
and their products are grouped according to the Standard
Industrial Classification (SIC) and the Census product code
extension of the SIC. Industry price indexes are compatible
with other economic time series organized by SIC codes, such
as data on employment, wages, and productivity. Table 4
lists indexes for the net output of major mining and
manufacturing industry groups at the 2-digit level.
     Producer price indexes are based on selling prices
reported by establishments of all sizes selected by
probability sampling, with the probability of selection
proportionate to size. Individual items and transaction
terms from these firms are also chosen by probability
proportionate to size. BLS strongly encourages cooperating
companies to supply actual transaction prices at the time of
shipment to minimize the use of list prices. Prices are
normally reported by mail questionnaire for the Tuesday of
the week containing the 13th.
     Price data are provided on a voluntary and confidential
basis; no one but sworn BLS employees are allowed access to
individual company price reports. All producer price indexes
are routinely subject to revision once, 4 months after
original publication, to reflect the availability of late
reports and corrections by respondents.
     Net output values of shipments are used as weights for
industry indexes. Net output values refer to the value of
shipments from establishments in one industry to
establishments classified in another industry. However,
weights for commodity price indexes are based on gross
shipment values, including shipment values between
establishments within the same industry. As a result, broad
commodity grouping indexes such as the all commodities index
are affected by the multiple counting of price change at
successive stages of processing, which can lead to
exaggerated or misleading signals about inflation. Stage-of-
processing indexes partially correct this defect, but
industry indexes consistently correct for this at all levels
of aggregation. Therefore, industry and stage-of-processing
indexes are more appropriate than broad commodity groupings
for economic analysis of general price trends.
     Weights for most traditional commodity groupings of the
PPI, as well as all indexes (such as stage-of-processing
indexes) calculated from traditional commodity groupings,
currently reflect 1987 values of shipments as reported in
the Census of Manufactures and other sources. From January
1987 through December 1991, PPI weights were derived from
1982 shipment values. Industry indexes shown in table 4 are
also now calculated with 1987 net output weights.
     Effective with publication of January 1988 data, many
important PPI series (including stage-of-processing
groupings and most commodity groups and individual items)
were placed on a new reference base, 1982=100, to coincide
with the reference year of the shipment weights. From 1971
through 1987, the standard reference base for most PPI
series was 1967=100. Except for rounding differences, the
shift to the new reference base did not alter any changes to
previously published percent changes for affected PPI
series. (See "Calculating Index Changes," below.) The new
reference base is not used for indexes with a base later
than December 1981, nor for indexes for the net output of
industries and their products.
     For further information on the underlying concepts and
methodology of the Producer Price Index, see chapter 16,
"Producer Prices," in BLS Handbook of Methods (September
1992), Bulletin 2414. Reprints are available from the Bureau
of Labor Statistics on request.

Calculating Index Changes

     Movements of price indexes from one month to another
are usually expressed as percent changes rather than as
changes in index points because index point chances are
affected by the level of the index in relation to its base
period, while percent changes are not. The box shows the
computation of index point and percent changes.
     Percent changes for 3-month and 6-month periods can be
expressed as annual rates that are computed according to the
standard formula for compound growth rates. These data
indicate what the percent change would be if the rate for a
given 3- or 6-month span were maintained for a 12-month
period.





                Index Point Change

     Finished Goods Price Index    107.5
     Less previous index           104.0
     Equals index point change       3.5

          Index Percent Change

     Index point change              3.5
     Divided by the previous index 104.0
     Equals                          0.034
     Result multiplied by 100        0.034 x 100
     Equals percent change           3.4

     Each index measures price changes from a reference
period which equals 100.0 (1982 or some later month). An
increase of 5.5 percent from the reference period in the
Finished Goods Price Index, for example, is shown as 105.5.
This change can also be expressed in dollars as follows:
"Prices received by domestic producers of a systematic
sample of finished goods have risen from $100 in 1982 to
$105.50 to-day." Likewise, a current index of 90.0 would
indicate that prices received by producers of finished goods
today are 10 percent lower than they were in 1982.

Seasonally Adjusted
and Unadjusted Data

     Because price data are used for different purposes by
different groups, the Bureau of Labor Statistics publishes
seasonally adjusted as well as unadjusted changes each
month.
     Seasonally adjusted data are preferred for analyzing
general price trends in the economy because they eliminate
the effect of changes that normally occur at about the same
time and in about the same magnitude every year-such as
price movements resulting from normal weather patterns,
regular production and marketing cycles, model changeovers,
seasonal discounts, and holidays. For these reasons,
seasonally adjusted data more clearly reveal underlying
cyclical trends.
     Unadjusted data are of primary interest to users who
need information which can be related to actual dollar
values of transactions. Individuals requiring this
information include marketing specialists, purchasing
agents, budget and cost analysts, contract specialists, and
commodity traders. It is the unadjusted data that are
generally cited in escalating long-term contracts such as
purchasing agreements or real estate leases. (See Escalation
and Producer Price Indexes: A Guide for Contracting Parties,
BLS Report 807, September 1991, available on request from
BLS.)
     For more information, see "Appendix A: Seasonal
Adjustment Methodology at BLS," in the BLS Handbook of
Methods (September 1992), Bulletin 2414.