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http://stats.bls.gov/ppihome.htm   APRIL 9, 1998
                                     
                                     
                   Producer Price Indexes -- March 1998

     The Producer Price Index for Finished Goods declined 0.3 percent in
March, seasonally adjusted, the Bureau of Labor Statistics of the U.S.
Department of Labor reported today.  This decline followed decreases of 0.1
percent in February and 0.7 percent in January.  The index for finished
goods other than foods and energy showed no change in March, after
advancing 0.1 percent a month ago.  Prices received by producers of
intermediate goods declined 0.5 percent, following a 0.2-percent drop in
the prior month.  The crude goods index fell 1.6 percent, after a 2.5-
percent decrease in February.  (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.)
 1997                                                     
 Mar.    -0.2    0.9   -2.6     0.1         1.5   -0.3   -7.7
 Apr.    -0.4   -0.4   -2.2       0         0.8   -0.3    0.5
 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.   r-0.2  r-0.3  r-0.4   r-0.1       r-0.7    0.2   r1.6
 Dec.    -0.2   -0.1  r-0.7      r0        -1.2  r-0.2  r-5.9
                                                             
 1998                                                        
 Jan.    -0.7   -0.4   -3.7    -0.1        -1.8   -0.6   -4.5
 Feb.    -0.1    0.4   -1.8     0.1        -1.6   -0.2   -2.5
 Mar.    -0.3   -0.4   -1.9       0        -1.8   -0.5   -1.6

r=revised.  Some of the figures shown above and elsewhere in this release
may differ from those previously reported because data for November 1997
have been revised to reflect the availability of late reports and
corrections by respondents.
                                    -2-

     Among finished goods in March, the index for finished consumer foods
declined 0.4 percent, following a 0.4-percent increase in the previous
month.  Prices for finished energy goods fell for the sixth consecutive
month.  In March, the finished energy drop was led by a large decline in
gasoline prices.  The decline in gasoline accounted for over half of the
finished goods index decrease.  Prices for capital equipment showed no
change in March, after falling a month ago.  The index for finished
consumer goods other than foods and energy increased 0.1 percent for the
second consecutive month.
     
     During the first quarter of 1998, the Finished Goods Price Index moved
downward at a seasonally adjusted annual rate of 4.2 percent, following a
1.2-percent rate of decline during the fourth quarter of 1997.  The index
for finished energy goods fell at a 25.9-percent annual rate from December
1997 to March 1998, after falling at a 6.1-percent annual rate over the
last three months of 1997, and accounted for more than three fourths of the
faster rate of decline in the finished goods index in the first quarter of
1998.  The index for finished consumer foods turned down at an annual rate
of 1.5 percent from December to March, after increasing at a 0.9-percent
rate during the fourth quarter of 1997.    Prices for consumer nondurables
less foods fell more than in the prior quarter.  The index for finished
goods other than foods and energy showed no change in the first quarter of
1998, after decreasing 0.6 percent in the prior quarter.  Prices for
capital equipment fell less during the first three months of 1998 than in
the final quarter of 1997.

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                                                             
 Mar.     1.8   -3.3    0.0        0.6    1.7  -21.3    0.2     -2.2
 Apr.     0.4   -2.2      0       -0.1    3.0   -0.9   -2.1     -5.7
 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     r0    0.1      r-0.2  r-0.1   r4.6  r-0.4    r-0.1
 Dec.    -0.9  r-1.5     r0       -0.8  r-0.2 r-14.1  r-1.5    -11.7
                                                                  
 1998                                                             
 Jan.    -3.2   -2.9   -0.1       -1.7   -3.3   -7.3   -2.2    -18.7
 Feb.    -0.1   -1.2   -0.1       -1.7   -0.7   -6.5    0.1    -13.5
 Mar.    -1.6   -2.4   -0.1       -1.8    0.7   -4.3   -1.9     -7.8

r=revised.  Some of the figures shown above and elsewhere in this release
may differ from those previously reported because data for November 1997
have been revised to reflect the availability of late reports and
corrections by respondents.
                                    -3-

     Before seasonal adjustment, the Producer Price Index for Finished
Goods fell 0.3 percent in March to stand at 129.7 (1982=100).  From March
1997 to March 1998, the Finished Goods Price Index decreased 1.8 percent.
Over the past 12 months, prices for finished consumer foods declined 1.4
percent, the index for finished energy goods fell 10.4 percent, and prices
for finished goods other than foods and energy decreased 0.1 percent.
Prices received by domestic producers of intermediate goods declined 1.8
percent for the 12 months ended in March, and the index for crude goods
fell 7.8 percent during the same period.

Finished goods

     Prices for finished consumer foods turned down 0.4 percent in March,
following a 0.4-percent increase a month ago.  The index for dairy products
fell 1.2 percent, after rising 3.1 percent in the previous month.  Prices
for fresh fruits and melons, beef and veal, and for finfish and shellfish
also turned down, after increasing in February.  The index for processed
young chickens rose less than in the prior month.  By contrast, prices for
eggs for fresh use advanced 13.4 percent, following a 13.9-percent decline
a month ago.  The index for processed turkeys also turned up, after falling
a month earlier.  Prices for soft drinks and for fresh and dry vegetables
rose more than a month ago.

     The index for finished energy goods declined 1.9 percent in March,
following a 1.8-percent decrease in February.  Falling prices for gasoline,
residential electric power, and home heating oil more than offset price
increases for residential natural gas and finished lubricants.

     Prices for capital equipment showed no change, after declining 0.1
percent in February.  In March, rising prices for light motor trucks,
civilian aircraft, truck trailers, and for construction machinery and
equipment offset falling prices for electronic computers and commercial
furniture.

     Prices for finished consumer goods other than foods and energy
advanced 0.1 percent in March, following a similar increase a month ago.
Price increases for prescription drugs, light motor trucks, passenger cars,
periodical circulation, and for sanitary papers and health products
outweighed price declines for book publishing, household appliances, men's
and boys' apparel, and over-the-counter drugs.

Intermediate goods

     The Producer Price Index for Intermediate Materials, Supplies, and
Components decreased 0.5 percent in March, seasonally adjusted, after
declining 0.2 percent in February.  During the first quarter of 1998, this
index fell at a 5.3-percent seasonally adjusted annual rate, after
declining at a 0.6-percent rate during the prior quarter.  In March, prices
for intermediate energy goods and intermediate foods and feeds decreased
more than in the previous month.  The index for materials for durable
manufacturing fell, after rising last month.  Prices for materials and
components for construction showed no change, after a slight increase in
the prior month.  The index for materials for nondurable manufacturing
decreased at the same rate as a month ago.  Excluding foods and energy, the
index for intermediate materials decreased 0.1 percent, the same as in
February.  (See table B.)

     Prices for intermediate energy goods declined 2.4 percent in March,
following a 1.2-percent decline in February.  This index declined at a
seasonally adjusted annual rate of 23.0 percent during the first quarter of
1998, following a 3.6-percent rate of decline for the previous three
months.  In March, the index for residual fuel fell 17.3 percent, after a
12.6-percent advance in the prior month.  Prices for commercial electric
power, diesel fuel, jet fuels, gasoline, and liquefied petroleum gas all
decreased more than in the previous month.  Conversely, the index for
utility natural gas advanced 0.5 percent, following a 2.3-percent decline
last month.  Prices for coke oven products also turned up, after falling in
February.
                                    -4-

     Prices for intermediate foods and feeds declined 1.6 percent in March,
following a 0.1-percent decline in February.  During the first quarter of
1998, this index fell at an 18.1-percent seasonally adjusted annual rate,
after falling at a 6.8-percent rate during the prior quarter.  In March,
the index for fluid milk products decreased 1.8 percent, after a 5.6-
percent increase a month ago.  Prices for refined sugar and for beef and
veal also fell, after rising in the previous month.  The index for pork
declined more than last month.  The index for confectionery materials rose
less than in the prior month.  By contrast, the index for prepared animal
feeds declined 2.7 percent, following a 3.5-percent decline last month.
Prices for flour and for condensed and evaporated milk products rose more
than in the previous month.

     The index for durable manufacturing materials declined 0.5 percent in
March, following a 0.1-percent advance in February.  From December 1997 to
March 1998, this index declined at a seasonally adjusted annual rate of 4.5
percent, following a 4.7-percent rate of decline for the previous quarter.
In March, prices for building paper and board decreased 3.4 percent, after
increasing 3.4 percent a month ago.  The indexes for precious metals,
plywood, and for hot-rolled bars, plates, and structural shapes also fell,
after rising in the previous month.  Prices for hot-rolled sheet and strip
fell more than last month.  On the other hand, the index for copper cathode
and refined copper rose 2.7 percent, following a 0.8-percent increase a
month earlier.  Prices for prepared paint also rose more than in February.
The indexes for flat glass and for cold rolled sheet and strip fell less
than a month ago.

     The index for materials and components for construction showed no
change in March, following a 0.1-percent advance in February.  During the
first quarter of 1998, this index fell at a 0.3-percent seasonally adjusted
annual rate, after falling at a 0.5-percent rate during the final quarter
of 1997.  In March, falling prices for plywood, switchgear, softwood
lumber, wiring devices, and millwork offset rising prices for nonferrous
wire and cable, fabricated structural metal products, metal valves, cement,
and plastic construction products.

     The index for nondurable manufacturing materials declined 0.5 percent
in March, following a similar 0.5-percent decline in February.  This index
declined at a seasonally adjusted annual rate of 4.5 percent during the
first quarter of 1998, following a 0.6-percent rate of increase for the
previous quarter.  In March, falling prices for primary basic organic
chemicals, plastic resins and materials, nitrogenates, synthetic rubber,
gray fabrics, and basic inorganic chemicals outweighed rising prices for
paperboard, finished fabrics, paper, and for inedible fats and oils.

Crude goods

     The Producer Price Index for Crude Materials for Further Processing
declined 1.6 percent in March, seasonally adjusted, following a 2.5-percent
drop in February.  This index fell at a seasonally adjusted annual rate of
29.6 percent in the first quarter of 1998, following no change in the final
quarter of 1997.  In March, prices for crude energy materials fell less
than in the prior month.  The index for crude foodstuffs and feedstuffs
rose, after falling in February.  Prices for basic industrial materials
fell, after rising in the previous month.  (See table B.)
     
     The index for crude energy materials decreased 4.3 percent in March
after falling 6.5 percent in February.  During the first quarter of 1998,
this index fell at a seasonally adjusted annual rate of 52.6 percent,
following a 1.0-percent rate of increase in the fourth quarter of 1997.  In
March, price declines for crude petroleum outweighed price increases for
coal and natural gas.
                                    -5-
     
     Prices for crude foodstuffs and feedstuffs turned up 0.7 percent in
March, after decreasing 0.7 percent in the prior month.  From December 1997
to March 1998, this index fell at a seasonally adjusted annual rate of 12.7
percent, following a 3.3-percent rate of increase in the final quarter of
1997.  In March, the index for slaughter cattle advanced 3.7 percent, after
falling 4.8 percent in the previous month.  Prices for slaughter turkeys
also turned up, after declining in February.  The indexes for slaughter
broilers and fryers, wheat, and for fresh vegetables, except potatoes, rose
more than a month ago.  By contrast, prices for soybeans fell 3.1 percent,
following a 3.3-percent gain in February.  The indexes for fluid milk and
for fresh fruits and melons also fell, after rising in the prior month.
Prices for slaughter hogs decreased more than in the previous month.
     
     The index for crude nonfood materials less energy turned down 1.9
percent in March, following a 0.1 percent increase in February.  This index
fell at a seasonally adjusted annual rate of 15.0 percent in the first
quarter of 1998, following a 7.9-percent rate of decline in the fourth
quarter of 1997.  In March, prices for leaf tobacco fell 9.5 percent, after
rising 4.0 percent in the previous month.  The indexes for gold ores, raw
cotton, wastepaper, and copper ores also turned down, after advancing a
month ago.  On the other hand, prices for softwood logs, bolts, and timber
turned up 0.6 percent, following a 1.2-percent drop in the prior month.
The index for aluminum base scrap fell less than in February.
     
Net output price indexes for mining, manufacturing, and other industries

Mining.  The Producer Price Index for the net output of total domestic
mining industries fell 3.4 percent in March following a 4.4-percent decline
in February.  (Net output price indexes are not seasonally adjusted.)  From
December 1997 to March 1998, this index fell at an annual rate of 42.8
percent, following a 13.6-percent annual rate of increase in the last
quarter of 1997.  In March, the index for the oil and gas extraction
industry group fell 4.8 percent, following a 5.7-percent drop in the
previous month.  Prices for the coal mining industry group turned up 0.7
percent following a 2.6-percent decrease in the prior month.  By contrast,
prices for the metal mining industry group declined 1.6 percent, after
rising 3.7 percent a month ago.  Prices for the non-metallic mineral mining
industry group increased less than in February.  In March, the Producer
Price Index for the net output of total domestic mining industries stood at
72.0 (December 1984=100), 8.6 percent below its year-ago level.

Manufacturing.  The Producer Price Index for the net output of total
domestic manufacturing industries declined 0.4 percent in March, following
a 0.1-percent decline in February.  This index moved down at a 4.0-percent
annual rate in the first quarter of 1998, after falling at a 1.2 percent
annual rate in the previous quarter.  In March, prices for the petroleum
refining and the chemicals and allied products industry groups fell more
than in the previous month.  Prices for the food and kindred products,
lumber and wood products, printing and publishing, and measuring
instruments industry groups turned down, after increasing in the prior
month.  The indexes for the apparel, furniture and fixtures, and fabricated
metal products industry groups increased less than in February.
Conversely, prices for the paper products industry group turned up, after
falling a month earlier.  In March, the Producer Price Index for the net
output of the total domestic manufacturing sector stood at 125.7 (December
1984=100), 1.6 percent below its year-ago level.
                                    -6-
                                     
Other.  Among other industries in March, prices for passenger car rental
fell, after increasing in the previous month.  Indexes for freight
transportation along the Great Lakes, Mississippi river transportation,
marine cargo handling, freight transportation arrangement, recovered paper
collection, truck rental and leasing, and architectural services also
turned down, after rising a month earlier.  Prices for local trucking
without storage, electric power utilities, and ferrous metal scrap
collection fell more than in February.  The indexes for courier services
(except by air), air passenger transportation, travel agencies, telephone
communications, real estate agents and managers, advertising agencies, and
for skilled and intermediate care facilities rose less than in the prior
month.  The index for other specialty hospitals was unchanged, after
advancing in February.

     By contrast, the index for home health care services increased 0.5
percent in March, after falling 1.3 percent in February.  Prices for
general warehousing and storage, deep sea domestic transportation of
freight, air cargo transportation, air courier services, and airports and
airport services also turned up after falling in the previous month.  The
indexes for nonscheduled air transportation, radio broadcasting, cable and
other pay television services, operators of nonresidential buildings,
hotels and motels, help supply services, offices and clinics of doctors of
medicine, and legal services rose more than a month ago.  Prices for
natural gas utilities showed no change after falling in February.
     
                                   *****
             Producer Price Index data for April 1998 will be
           released on Wednesday, May 13, 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|                       |Mar. 1998 from:|
                                                 |          |_______________________|_______________|_______________________________
                                                 |   Dec.   |       |       |       |       |       |       |         |
                                                 |           Nov.   |Feb.   |Mar.   |  Mar. | Feb.  |Dec. to|Jan.  to |Feb.  to
                                                 |   1997 1/|1997 2/|1998 2/|1998 2/|  1997 | 1998  |  Jan. |   Feb.  |  Mar.
_________________________________________________|__________|_______|_______|_______|_______|_______|_______|_________|____________
                                                 |
Finished goods...................................|  100.000   131.7   130.1   129.7    -1.8   -0.3     -0.7     -0.1    -0.3
  Finished consumer goods........................|   74.733   130.1   128.1   127.6    -2.1    -.4      -.8      -.2     -.4
    Finished consumer foods......................|   23.171   134.6   133.6   133.3    -1.4    -.2      -.4       .4     -.4
      Crude......................................|    1.751   130.3   128.6   129.4    -7.8     .6     -2.8      1.3      .2
      Processed..................................|   21.420   134.9   134.0   133.6     -.9    -.3      -.2       .3     -.4
    Finished consumer goods, excluding foods.....|   51.563   128.0   125.5   124.9    -2.6    -.5     -1.1      -.3     -.5
      Nondurable goods less foods................|   35.258   123.9   120.6   119.9    -3.2    -.6     -1.5      -.5     -.6
      Durable goods..............................|   16.304   134.1   133.5   133.3    -1.3    -.1      -.2      -.1     -.1
  Capital equipment..............................|   25.267   138.3   137.9   137.9     -.6    0        -.1      -.1     0
    Manufacturing industries.....................|    6.590   137.8   137.9   138.0      .1     .1       .1      0        .1
    Nonmanufacturing industries..................|   18.677   138.3   137.8   137.7     -.9    -.1      -.1      -.1      .1
                                                 |
Intermediate materials, supplies, and components.|  100.000   125.5   124.0   123.3    -1.8    -.6      -.6      -.2     -.5
  Materials and components for manufacturing.....|   47.581   128.2   127.5   127.0    -1.2    -.4      -.4      -.1     -.3
    Materials for food manufacturing.............|    3.493   124.2   122.1   121.1    -2.4    -.8     -2.2      1.8     -.9
    Materials for nondurable manufacturing.......|   16.163   130.0   129.5   128.7     -.5    -.6      -.1      -.5     -.5
    Materials for durable manufacturing..........|   10.580   132.1   130.7   130.0    -2.5    -.5      -.7       .1     -.5
    Components for manufacturing.................|   17.345   126.0   126.0   126.0     -.6    0        -.1      0       0
  Materials and components for construction......|   13.538   146.6   146.7   146.6      .3    -.1      -.2       .1     0
  Processed fuels and lubricants.................|   13.022    88.3    82.0    79.8   -10.0   -2.7     -2.9     -1.2    -2.5
    Manufacturing industries ....................|    4.821    91.3    86.5    84.6    -7.0   -2.2     -2.5      -.2    -2.0
    Nonmanufacturing industries..................|    8.201    86.3    79.3    76.8   -11.9   -3.2     -3.1     -1.7    -2.8
  Containers.....................................|    3.775   138.1   140.8   142.1     4.5     .9       .7       .1     1.1
  Supplies.......................................|   22.084   136.1   135.2   135.0     -.6    -.1      -.4      -.1     -.2
    Manufacturing industries.....................|    4.940   140.2   140.5   140.6     1.3     .1      0         .1      .1
    Nonmanufacturing industries..................|   17.144   133.9   132.8   132.5    -1.3    -.2      -.6      -.2     -.3
      Feeds......................................|    1.613   123.6   111.1   107.6   -19.0   -3.2     -5.5     -4.2    -3.3
      Other supplies.............................|   15.531   135.4   135.5   135.6      .8     .1      0         .1      .1
                                                 |
Crude materials for further processing...........|  100.000   114.7   100.4    99.2    -7.8   -1.2     -4.5     -2.5    -1.6
  Foodstuffs and feedstuffs......................|   42.215   110.4   105.1   106.6    -6.6    1.4     -3.3      -.7      .7
  Nonfood materials..............................|   57.785   113.4    93.5    90.5    -9.0   -3.2     -5.5     -3.9    -3.3
    Nonfood materials except fuel 3/.............|   33.354   101.7    92.7    86.9   -16.4   -6.3     -5.8      -.8    -6.5
      Manufacturing 3/...........................|   32.018    93.2    84.4    78.9   -17.4   -6.5     -6.0      -.7    -6.8
      Construction...............................|    1.336   199.6   200.9   201.1     -.4     .1      -.4     -1.1      .5
    Crude fuel 4/................................|   24.431   122.7    87.1    88.2     7.4    1.3     -5.0     -8.2     1.3
      Manufacturing industries...................|    2.029   117.4    85.2    85.7     5.3     .6     -5.2     -7.4      .6
      Nonmanufacturing industries................|   22.402   125.7    88.8    90.0     8.0    1.4     -5.0     -8.3     1.4
                                                 |
               Special groupings                 |
                                                 |
Finished goods, excluding foods..................|5/ 76.829   130.8   129.0   128.6    -1.9    -.3      -.8      -.2     -.3
Intermediate materials less foods and feeds......|6/ 94.894   125.6   124.3   123.6    -1.6    -.6      -.5      -.2     -.4
Intermediate foods and feeds.....................|6/  5.106   124.3   118.9   117.1    -7.9   -1.5     -3.2      -.1    -1.6
Crude materials less agricultural products 3/ 7/.|8/ 55.171   113.2    92.7    89.7    -9.0   -3.2     -5.5     -4.2    -3.2
                                                 |
Finished energy goods............................|5/ 13.575    81.9    75.8    74.4   -10.4   -1.8     -3.7     -1.8    -1.9
Finished goods less energy.......................|5/ 86.425   140.6   140.2   140.1     -.4    -.1      -.2       .1     -.1
Finished consumer goods less energy..............|5/ 61.158   141.4   141.1   140.9     -.4    -.1      -.2       .3     -.1
                                                 |
Finished goods less foods and energy.............|5/ 63.254   142.8   142.8   142.7     -.1    -.1      -.1       .1     0
Finished consumer goods less foods and energy....|5/ 37.988   145.8   145.8   145.8      .3    0        -.1       .1      .1
Consumer nondurable goods less foods and energy..|5/ 21.684   154.4   154.9   155.1     1.6     .1      -.1       .3      .1
                                                 |
Intermediate energy goods........................|6/ 13.132    88.0    81.8    79.5   -10.2   -2.8     -2.9     -1.2    -2.4
Intermediate materials less energy...............|6/ 86.868   133.8   133.3   133.0     -.6    -.2      -.3      -.1     -.2
Intermediate materials less foods and energy.....|6/ 81.762   134.4   134.2   134.0     -.1    -.1      -.1      -.1     -.1
                                                 |
Crude energy materials 3/........................|8/ 36.173    97.1    72.3    69.2   -10.2   -4.3     -7.3     -6.5    -4.3
Crude materials less energy......................|8/ 63.827   121.6   116.8   117.3    -6.7     .4     -2.9      -.4     -.3
Crude nonfood materials less energy 4/...........|8/ 21.612   154.3   151.0   148.7    -6.8   -1.5     -2.2       .1    -1.9
                                                 |
____________________________________________________________________________________________________________________________________

  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 November 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 |                                                       |                       |Mar. 1998 from:|
   code    |                      Grouping                         |_______________________|_______________|________________________
           |                                                       |       |       |       |       |       |       |       |
           |                                                       |Nov.   |Feb.   |Mar.   | Mar.  | Feb.  |Dec. to|Jan. to|Feb. to
           |                                                       |1997 1/|1998 1/|1998 1/| 1997  | 1998  |  Jan. |  Feb. |  Mar.
___________|_______________________________________________________|_______|_______|_______|_______|_______|_______|_______|________
           |                                                       |
           |FINISHED GOODS.........................................| 131.7   130.1   129.7    -1.8   -0.3     -0.7    -0.1    -0.3
           | FINISHED CONSUMER GOODS...............................| 130.1   128.1   127.6    -2.1    -.4      -.8     -.2     -.4
           |  FINISHED CONSUMER FOODS..............................| 134.6   133.6   133.3    -1.4    -.2      -.4      .4     -.4
           |                                                       |
01-11      |   Fresh fruits and melons 2/..........................|  89.6    92.5    84.6   -21.7   -8.5    -18.5     5.8    -8.5
01-13      |   Fresh and dry vegetables 2/.........................| 130.0   148.7   156.9    12.3    5.5     12.9     3.9     5.5
01-71-07   |   Eggs for fresh use (Dec. 1991=100)..................| 117.7    86.0    98.6     -.2   14.7      -.6   -13.9    13.4
02-11      |   Bakery products 2/..................................| 174.8   175.2   175.2     1.3    0         .3      .1     0
02-13      |   Milled rice 2/......................................| 127.1   124.6   123.9    -3.4    -.6      -.9    -1.0     -.6
02-14-02   |   Pasta products (June 1985=100) 2/...................| 123.6   123.5   120.6    -4.9   -2.3      -.1     0      -2.3
02-21-01   |   Beef and veal.......................................| 104.1   101.1    97.8    -7.0   -3.3       .8      .6    -4.7
02-21-04   |   Pork................................................| 111.3    97.4    93.0   -22.2   -4.5     -9.0    -3.7    -5.5
02-22-03   |   Processed young chickens............................| 115.4   117.0   118.8     -.1    1.5      1.1     5.0     1.5
02-22-06   |   Processed turkeys...................................| 103.3    90.2    92.4    -6.3    2.4     -1.7    -3.7     1.7
02-23      |   Finfish and shellfish...............................| 189.1   193.6   187.1     0     -3.4      -.8     3.3    -5.2
02-3       |   Dairy products......................................| 134.0   133.5   132.2     3.0   -1.0     -1.7     3.1    -1.2
02-4       |   Processed fruits and vegetables 2/..................| 124.9   125.3   125.3    -1.6    0        -.2      .6     0
02-55      |   Confectionery end products 2/.......................| 168.4   167.9   167.9     -.3    0        -.1     -.1     0
02-62      |   Soft drinks.........................................| 132.4   134.2   134.9     1.0     .5      -.2      .2      .9
02-63-01   |   Roasted coffee 2/...................................| 151.8   151.1   151.3     5.9     .1      -.2      .1      .1
02-76      |   Shortening and cooking oils 2/......................| 142.2   141.5   140.2     2.2    -.9       .9     2.4     -.9
           |                                                       |
           |  FINISHED CONSUMER GOODS EXCLUDING FOODS..............| 128.0   125.5   124.9    -2.6    -.5     -1.1     -.3     -.5
           |                                                       |
02-61      |   Alcoholic beverages.................................| 134.0   135.1   135.0     -.6    -.1       .3     -.3      .1
03-81-01   |   Women's apparel 2/..................................| 121.3   120.6   120.7      .4     .1      0        .1      .1
03-81-02   |   Men's and boys' apparel.............................| 132.6   132.9   132.8      .1    -.1      -.8      .4     -.2
03-81-03   |   Girls', children's, and infants' apparel 2/.........| 122.2   123.1   122.6    -1.1    -.4       .6     -.1     -.4
03-82      |   Textile housefurnishings 2/.........................| 123.0   123.5   123.5     1.0    0         .2      .2     0
04-3       |   Footwear............................................| 144.1   144.7   144.7      .8    0         .1     -.1      .1
05-41      |   Residential electric power (Dec. 1990=100)..........| 110.3   108.9   108.5    -1.8    -.4     -1.3     0       -.4
05-51      |   Residential gas (Dec. 1990=100).....................| 122.1   113.5   114.4    -1.5     .8     -3.3    -1.7     1.8
05-71      |   Gasoline............................................|  67.9    55.6    51.8   -29.5   -6.8     -7.9    -6.4    -7.6
05-73-02-01|   Fuel oil No. 2......................................|  66.5    53.9    50.1   -21.7   -7.1     -8.9     -.7    -4.5
06-35      |   Pharmaceutical preps, ethical (Prescription)........| 277.1   280.5   284.1     4.5    1.3       .8      .3     1.2
06-36      |   Pharmaceutical preps,proprietary (Over-counter).....| 185.1   185.0   183.9    -1.9    -.6      -.2     -.2     -.6
06-71      |   Soaps and synthetic detergents 2/...................| 126.9   126.3   126.4      .2     .1      -.8      .3      .1
06-75      |   Cosmetics and other toilet preparations 2/..........| 130.7   131.6   131.6      .8    0         .3      .6     0
07-12      |   Tires, tubes, tread, etc 2/.........................|  94.3    94.2    94.2    -1.5    0         .2      .1     0
09-15-01   |   Sanitary papers and health products 2/..............| 146.1   145.0   145.7    -1.6     .5      -.1     -.4      .5
09-31-01   |   Newspaper circulation 2/............................| 202.0   202.3   202.3      .2    0         .1     0       0
09-32-01   |   Periodical circulation..............................| 189.5   190.9   191.7     2.5     .4     -1.1      .4      .8
09-33      |   Book publishing 2/..................................| 205.1   205.9   202.4     1.8   -1.7       .1     1.0    -1.7
12-1       |   Household furniture 2/..............................| 146.9   147.7   147.9     1.4     .1       .3      .3      .1
12-3       |   Floor coverings 2/..................................| 128.5   128.3   128.0     -.8    -.2      -.6     1.2     -.2
12-4       |   Household appliances 2/.............................| 109.2   108.8   108.3    -2.5    -.5      0       -.2     -.5
12-5       |   Home electronic equipment 2/........................|  75.8    75.8    75.8    -3.1    0        -.3     0       0
12-62      |   Household glassware 2/..............................| 162.5   161.9   162.8     1.9     .6      -.2     -.1      .6
12-64      |   Household flatware 2/...............................| 138.4   138.9   139.0      .3     .1      0       -.2      .1
12-66      |   Lawn and garden equip., ex. tractors 2/.............| 130.9   130.8   131.3    -1.2     .4      0       -.2      .4
14-11-01   |   Passenger cars......................................| 134.8   133.3   133.2    -2.3    -.1      -.5     -.3      .1
15-11      |   Toys, games, and children's vehicles................| 125.0   124.3   124.2     -.9    -.1      -.1    -1.3      .3
15-12      |   Sporting and athletic goods 2/......................| 125.0   125.9   125.8     1.0    -.1       .4      .3     -.1
15-2       |   Tobacco products 2/.................................| 256.4   261.9   262.0     8.5    0        -.3     1.8     0
15-5       |   Mobile homes 2/.....................................| 153.1   153.1   153.2     1.3     .1       .1      .1      .1
15-94-02   |   Jewelry, platinum, & karat gold 2/..................| 129.2   129.5   128.3     -.2    -.9      -.2      .8     -.9
15-94-04   |   Costume jewelry and novelties 2/....................| 138.8   138.8   138.9     -.6     .1      0      -1.5      .1
           |                                                       |
           | CAPITAL EQUIPMENT.....................................| 138.3   137.9   137.9     -.6    0        -.1     -.1     0
           |                                                       |
11-1       |   Agricultural machinery and equipment 2/.............| 149.7   148.5   148.6     -.2     .1      -.1      .2      .1
11-2       |   Construction machinery and equipment................| 143.0   144.3   145.0     2.2     .5      0        .1      .7
11-37      |   Metal cutting machine tools 2/......................| 157.5   159.8   160.5     3.7     .4       .2      .7      .4
11-38      |   Metal forming machine tools 2/......................| 155.3   155.4   157.3     3.1    1.2      -.3      .5     1.2
11-39      |   Tools, dies, jigs, fixtures, and ind. molds 2/......| 138.4   138.7   138.8      .8     .1       .1      .1      .1
11-41      |   Pumps, compressors, and equipment...................| 147.3   148.2   148.5     1.9     .2      -.1      .2      .1
11-44      |   Industrial material handling equipment 2/...........| 130.2   130.5   130.7     1.4     .2       .2     0        .2
11-51      |   Electronic computers (Dec. 1990=100) 2/.............|  30.0    27.0    26.5   -26.4   -1.9     -3.0    -6.6    -1.9
11-62      |   Textile machinery 2/................................| 152.5   152.8   153.2     1.1     .3       .2      .1      .3
11-64      |   Paper industries machinery (June 1982=100)..........| 159.4   160.0   159.5     1.8    -.3       .1      .8     -.4
11-65      |   Printing trades machinery 2/........................| 139.0   138.9   139.6     0       .5      -.1     -.1      .5
11-74      |   Transformers and power regulators 2/................| 129.2   128.8   128.6     -.9    -.2      -.1     0       -.2
11-76      |   Communication & related equip. (Dec. 1985=100) 2/...| 114.8   114.8   114.8     1.2    0         .1      .1     0
11-79-05   |   X-ray and electromedical equipment 2/...............| 107.0   107.3   107.2     -.6    -.1      0        .5     -.1
11-91      |   Oil field and gas field machinery 2/................| 124.8   125.2   125.8     3.0     .5       .5      .2      .5
11-92      |   Mining machinery and equipment 2/...................| 141.7   141.9   142.5     2.8     .4       .4     -.1      .4
11-93      |   Office and store machines and equipment 2/..........| 112.6   112.2   112.4     0       .2      -.3     0        .2
12-2       |   Commercial furniture 2/.............................| 155.0   155.8   155.6     1.6    -.1       .1      .4     -.1
14-11-05   |   Light motor trucks..................................| 159.2   156.1   156.1    -3.4    0        -.8      .1      .2
14-11-06   |   Heavy motor trucks 2/...............................| 139.2   139.9   140.2     -.2     .2       .3     -.2      .2
14-14      |   Truck trailers 2/...................................| 129.9   133.8   135.0     3.6     .9      2.8      .1      .9
14-21-02   |   Civilian aircraft (Dec. 1985=100)...................| 150.1   150.0   150.0      .2    0        -.3      .1      .2
14-31      |   Ships (Dec. 1985=100) 2/............................| 145.3   145.4   145.6     2.1     .1      0        .1      .1
14-4       |   Railroad equipment..................................| 134.2   134.0   134.3     1.6     .2      -.4     -.6      .9
           |                                                       |
           |INTERMEDIATE MATERIALS, SUPPLIES, AND COMPONENTS.......| 125.5   124.0   123.3    -1.8    -.6      -.6     -.2     -.5
           |                                                       |
           | INTERMEDIATE FOODS AND FEEDS..........................| 124.3   118.9   117.1    -7.9   -1.5     -3.2     -.1    -1.6
           |                                                       |
02-12-03   |   Flour 2/............................................| 114.2   111.5   114.1    -4.6    2.3     -3.0     1.5     2.3
02-53      |   Refined sugar 2/....................................| 119.9   121.0   120.5    -4.5    -.4      -.5     1.6     -.4
02-54      |   Confectionery materials.............................|  98.4    95.8    96.5   -10.6     .7      2.7     2.4      .4
02-72      |   Crude vegetable oils 2/.............................| 126.1   130.8   135.2    13.2    3.4      -.4     3.9     3.4
02-9       |   Prepared animal feeds 2/............................| 128.1   117.4   114.2   -16.1   -2.7     -4.7    -3.5    -2.7
           |                                                       |
           | INTERMEDIATE MATERIALS LESS FOODS AND FEEDS...........| 125.6   124.3   123.6    -1.6    -.6      -.5     -.2     -.4
           |                                                       |
03-1       |   Synthetic fibers 2/.................................| 110.4   111.1   110.8     -.5    -.3      -.2     1.0     -.3
03-2       |   Processed yarns and threads 2/......................| 114.2   114.9   114.8      .3    -.1      0       1.4     -.1
03-3       |   Gray fabrics 2/.....................................| 121.7   123.2   122.7      .9    -.4       .8      .3     -.4
03-4       |   Finished fabrics....................................| 123.7   124.0   124.0      .3    0        -.1      .1      .2
03-83-03   |   Industrial textile products 2/......................| 130.6   130.9   131.0     2.6     .1      2.5     -.1      .1
04-2       |   Leather.............................................| 185.2   179.7   179.4    -3.3    -.2     -1.4    -1.4     -.2
05-32      |   Liquefied petroleum gas 2/..........................|  85.2    72.0    67.6   -21.4   -6.1     -9.3    -3.1    -6.1
____________________________________________________________________________________________________________________________________
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 |                                                       |                       |Mar. 1998 from:|
   code    |                      Grouping                         |_______________________|_______________|________________________
           |                                                       |       |       |       |       |       |       |       |
           |                                                       |Nov.   |Feb.   |Mar.   | Mar.  | Feb.  |Dec. to|Jan. to|Feb. to
           |                                                       |1997 1/|1998 1/|1998 1/| 1997  | 1998  |  Jan. |  Feb. |  Mar.
___________|_______________________________________________________|_______|_______|_______|_______|_______|_______|_______|________
           |                                                       |
           | INTERMEDIATE MATERIALS LESS FOODS AND FEEDS           |
           |   -Continued..........................................|
05-42      |   Commercial electric power...........................| 127.0   127.0   125.8    -1.4   -0.9     -0.5    -0.2    -0.9
05-43      |   Industrial electric power...........................| 127.9   127.1   126.8    -1.1    -.2      -.9     -.1     -.3
05-52      |   Commercial natural gas (Dec. 1990=100)..............| 118.5   108.7   108.1    -2.0    -.6     -4.5    -1.5      .7
05-53      |   Industrial natural gas (Dec. 1990=100)..............| 120.3   107.9   105.5    -1.7   -2.2     -3.6    -1.9     -.4
05-54      |   Natural gas to electric utilities (Dec. 1990=100)...| 111.3    89.0    87.7   -11.9   -1.5     -9.0   -10.9      .1
05-72-03   |   Jet fuels...........................................|  63.7    52.1    47.1   -29.4   -9.6     -3.4    -3.0    -6.1
05-73-03   |   No. 2 Diesel fuel...................................|  65.8    51.3    47.6   -28.4   -7.2     -5.1    -3.4    -7.5
05-74      |   Residual fuel 2/....................................|  62.9    53.8    44.5   -22.7  -17.3    -11.8    12.6   -17.3
06-1       |   Industrial chemicals 2/.............................| 126.2   124.9   123.7    -2.4   -1.0      -.2    -1.5    -1.0
06-21      |   Prepared paint......................................| 152.5   153.1   153.6     1.3     .3       .1      .1      .3
06-22      |   Paint materials 2/..................................| 142.4   143.4   143.3     2.6    -.1       .4      .2     -.1
06-31      |   Medicinal and botanical chemicals 2/................| 134.9   135.0   134.9     2.0    -.1       .3     -.1     -.1
06-4       |   Fats and oils, inedible 2/..........................| 143.0   112.0   116.1   -12.4    3.7     -7.9   -15.0     3.7
06-51      |   Mixed fertilizers...................................| 113.6   113.9   114.1      .4     .2       .1    -1.0     -.2
06-52-01   |   Nitrogenates........................................| 122.8   116.3   113.8   -19.2   -2.1     -3.9    -1.8    -3.7
06-52-02   |   Phosphates 2/.......................................| 109.3   109.9   110.1    -1.8     .2     -1.1     -.1      .2
06-53      |   Other agricultural chemicals........................| 150.4   150.2   150.0     3.4    -.1       .4     -.5      .1
06-6       |   Plastic resins and materials 2/.....................| 134.6   132.7   130.8    -5.7   -1.4       .5     -.9    -1.4
07-11-02   |   Synthetic rubber 2/.................................| 118.4   117.6   116.0    -3.9   -1.4      -.5     0      -1.4
07-21      |   Plastic construction products 2/....................| 128.1   126.5   126.8     -.5     .2     -1.0     -.2      .2
07-22      |   Unsupported plastic film, sheet, & other shapes.....| 131.3   130.2   129.3    -1.4    -.7     -1.1      .2     -.5
07-26      |   Plastic parts and components for manufacturing 2/...| 117.1   117.1   117.4     0       .3       .1     -.1      .3
08-11      |   Softwood lumber 2/..................................| 196.2   194.4   193.8    -7.9    -.3     -2.5     1.4     -.3
08-12      |   Hardwood lumber 2/..................................| 177.8   179.9   179.5     4.8    -.2       .8     -.1     -.2
08-2       |   Millwork 2/.........................................| 170.8   170.8   170.7      .2    -.1      -.1      .1     -.1
08-3       |   Plywood 2/..........................................| 157.9   153.6   151.4    -7.5   -1.4      -.6      .5    -1.4
09-11      |   Woodpulp 2/.........................................| 132.8   126.5   125.3      .6    -.9      -.6    -4.5     -.9
09-13      |   Paper...............................................| 146.5   148.0   147.5     4.8    -.3      1.2     -.3      .1
09-14      |   Paperboard..........................................| 154.4   156.5   156.0    11.7    -.3      1.4     -.1      .8
09-15-03   |   Paper boxes and containers 2/.......................| 148.2   153.7   156.3     8.1    1.7      1.4     -.2     1.7
09-2       |   Building paper and board 2/.........................| 133.8   131.6   127.1    -2.9   -3.4     -5.4     3.4    -3.4
09-37      |   Commercial printing (June 1982=100) 2/..............| 150.9   151.3   151.5     2.8     .1      0        .1      .1
10-15      |   Foundry and forge shop products.....................| 134.0   134.9   135.0      .5     .1       .2     -.2     -.1
10-17      |   Steel mill products 2/..............................| 116.6   116.2   115.9     -.2    -.3       .1     -.1     -.3
10-22      |   Primary nonferrous metals 2/........................| 120.4   113.1   110.9   -14.9   -1.9     -3.3      .1    -1.9
10-25-01   |   Aluminum mill shapes 2/.............................| 149.7   146.6   145.9    -1.2    -.5     -1.3     -.6     -.5
10-25-02   |   Copper and brass mill shapes 2/.....................| 168.3   160.3   159.6   -13.0    -.4     -4.2     -.3     -.4
10-26      |   Nonferrous wire and cable 2/........................| 145.3   141.7   142.4    -4.7     .5      -.6    -1.1      .5
10-3       |   Metal containers 2/.................................| 108.9   108.9   109.4     1.1     .5      0       1.1      .5
10-4       |   Hardware............................................| 146.0   146.6   146.7     1.0     .1      -.1      .1     -.1
10-5       |   Plumbing fixtures and brass fittings................| 174.7   175.5   175.8      .7     .2      -.1     -.6     -.2
10-6       |   Heating equipment...................................| 153.0   154.4   153.4      .9    -.6      -.3     -.1     -.5
10-7       |   Fabricated structural metal products................| 141.3   141.6   141.9     1.9     .2      0        .1      .1
10-88      |   Fabricated ferrous wire products (June 1982=100) 2/.| 129.0   129.4   129.7     1.9     .2       .2      .2      .2
10-89      |   Other misc. metal products 2/.......................| 126.3   126.4   126.5      .2     .1       .1     0        .1
11-45      |   Mechanical power transmission equipment.............| 155.3   156.9   156.9     1.6    0        -.3      .1      .1
11-48      |   Air conditioning and refrigeration equipment........| 132.6   133.0   133.1      .3     .1       .1     -.3     -.1
11-49-02   |   Metal valves, ex.fluid power (Dec. 1982=100) 2/.....| 154.1   154.9   155.7     2.4     .5       .1      .4      .5
11-49-05   |   Ball and roller bearings............................| 163.3   164.8   164.8     1.0    0        -.1     -.1     0
11-71      |   Wiring devices......................................| 154.6   154.7   154.2      .9    -.3      -.3     -.1     -.4
11-73      |   Motors, generators, motor generator sets............| 144.5   144.3   144.9      .3     .4       .2     -.5      .4
11-75      |   Switchgear, switchboard, etc., equipment............| 147.1   147.5   147.0     1.5    -.3      -.1      .2     -.5
11-78      |   Electronic components and accessories 2/............| 101.6   101.1   101.1    -4.4    0        -.4     -.5     0
11-94      |   Internal combustion engines.........................| 140.4   140.2   140.3      .4     .1      -.4     -.1      .1
11-95      |   Machine shop products 2/............................| 135.6   135.8   135.6      .5    -.1       .1      .3     -.1
13-11      |   Flat glass 2/.......................................| 108.5   107.5   107.4     -.7    -.1      -.1     -.8     -.1
13-22      |   Cement..............................................| 140.6   141.0   140.9     3.3    -.1       .1      .3      .3
13-3       |   Concrete products...................................| 136.7   137.6   137.7     1.7     .1      0        .4     0
13-6       |   Asphalt felts and coatings 2/.......................|  99.2    98.5    98.4    -1.0    -.1      -.1     -.2     -.1
13-7       |   Gypsum products 2/..................................| 172.9   171.6   172.1     2.3     .3      -.2     -.1      .3
13-8       |   Glass containers 2/.................................| 125.9   125.9   125.9     0      0        0       0       0
14-12      |   Motor vehicle parts 2/..............................| 115.2   114.7   114.7     -.9    0        -.4      .3     0
14-23      |   Aircraft engines & engine parts (Dec. 1985=100).....| 134.8   135.3   135.7    -1.4     .3      -.4     -.1      .3
14-25      |   Aircraft parts & aux.equip.,nec (June 1985=100) 2/..| 141.2   141.5   140.9     -.6    -.4       .4      .7     -.4
15-42      |   Photographic supplies 2/............................| 130.6   128.9   128.0    -1.0    -.7     -1.4      .1     -.7
15-6       |   Medical/surgical/personal aid devices...............| 143.1   144.1   144.1      .9    0         .1      .2     -.1
           |                                                       |
           | CRUDE MATERIALS FOR FURTHER PROCESSING................| 114.7   100.4    99.2    -7.8   -1.2     -4.5    -2.5    -1.6
           |                                                       |
           |  CRUDE FOODSTUFFS AND FEEDSTUFFS......................| 110.4   105.1   106.6    -6.6    1.4     -3.3     -.7      .7
           |                                                       |
01-21      |   Wheat 2/............................................| 101.8    95.8    97.5   -13.9    1.8     -6.3     1.2     1.8
01-22-02-05|   Corn................................................| 106.7   106.7   109.2    -9.2    2.3     -7.2     -.8    -2.6
01-31      |   Slaughter cattle....................................|  98.5    91.8    95.1    -5.4    3.6     -2.8    -4.8     3.7
01-32      |   Slaughter hogs......................................|  74.4    58.5    56.7   -28.9   -3.1    -19.6    -2.3    -5.8
01-41-02   |   Slaughter broilers/fryers...........................| 122.7   124.7   134.7     9.2    8.0      6.2     4.9     8.2
01-42      |   Slaughter turkeys...................................| 123.2    88.5    95.7    -3.7    8.1     -2.6    -2.0     5.5
01-6       |   Fluid milk..........................................| 104.1   105.9   105.0     6.4    -.8      2.2     1.2     -.6
01-83-01-31|   Soybeans 2/.........................................| 124.5   116.9   113.3   -21.8   -3.1     -3.9     3.3    -3.1
02-52-01-01|   Cane sugar,raw 2/...................................| 116.4   116.4   115.7     -.5    -.6      0       -.1     -.6

           |                                                       |
           |  CRUDE NONFOOD MATERIALS..............................| 113.4    93.5    90.5    -9.0   -3.2     -5.5    -3.9    -3.3
           |                                                       |
01-51-01-01|   Raw cotton..........................................| 114.6   108.0   110.1   -10.1    1.9     -5.6     3.4    -3.6
01-92-01-01|   Leaf tobacco 2/.....................................| 108.5   115.2   104.3    -6.6   -9.5     -1.6     4.0    -9.5
04-11      |   Cattle hides 2/.....................................| 190.3   154.6   145.4   -31.3   -6.0    -16.3    -1.4    -6.0
05-1       |   Coal 2/.............................................|  94.4    93.1    94.3    -2.5    1.3      0      -3.2     1.3
05-31      |   Natural gas 2/......................................| 127.3    84.0    84.9     8.2    1.1     -6.9   -10.0     1.1
05-61      |   Crude petroleum 2/..................................|  56.4    43.3    35.9   -36.2  -17.1    -12.8    -2.3   -17.1
08-5       |   Logs, timber, etc...................................| 212.1   213.9   214.7     -.7     .4      -.8    -1.4      .8
09-12      |   Wastepaper 2/.......................................| 164.8   164.1   162.4     4.2   -1.0     -1.0      .6    -1.0
10-11      |   Iron ore 2/.........................................|  95.2    95.2    95.2    -4.5    0        (3)     0       0
10-12      |   Iron and steel scrap 2/.............................| 196.0   193.4   185.4     -.3   -4.1       .1    -2.3    -4.1
10-21      |   Nonferrous metal ores (Dec. 1983=100) 2/............|  73.9    69.9    68.5   -22.0   -2.0     -1.6     5.1    -2.0
10-23-01   |   Copper base scrap 2/................................| 140.6   122.7   123.4   -26.4     .6     -9.2      .4      .6
10-23-02   |   Aluminum base scrap.................................| 193.0   184.6   182.1    -9.9   -1.4     -6.1    -3.6    -1.4
13-21      |   Construction sand, gravel, and crushed stone........| 148.7   150.7   151.0     2.4     .2       .1      .7      .1
____________________________________________________________________________________________________________________________________

1/  The indexes for November 1997 have been recalculated                             2/  Not seasonally adjusted.
    to incorporate late reports and corrections by respondents.                      3/  Not available.
    All indexes are subject to revision four months after original
    publication.
Table 3.  Producer Price Indexes for selected commodity groupings
(1982=100 unless otherwise indicated)
_______________________________________________________________________________________________
         |                                                |                                   |
         |                                                |         Unadjusted index 1/       |
Commodity|                                                |___________________________________|
  code   |                    Grouping                    | Nov. 1997 | Feb. 1998 |March 1998 |
_________|________________________________________________|___________|___________|___________|
         |                                                |           |           |           |
         | Finished Goods (1967=100)......................|   369.7   |   365.1   |   364.0   |
         | All commodities................................|   127.9   |   125.1   |   124.5   |
         |                                                |           |           |           |
         |                                                |           |           |           |
         |            MAJOR COMMODITY GROUPS              |           |           |           |
         |                                                |           |           |           |
         | Farm products and processed foods and feeds....|   126.2   |   123.4   |   123.2   |
01       |   Farm products................................|   111.0   |   106.2   |   107.5   |
02       |   Processed foods and feeds....................|   133.7   |   131.8   |   131.0   |
         |                                                |           |           |           |
         | Industrial commodities.........................|   128.2   |   125.4   |   124.7   |
03       |   Textile products and apparel.................|   122.9   |   123.2   |   123.1   |
04       |   Hides, skins, leather, and related products..|   154.3   |   148.5   |   147.2   |
05       |   Fuels and related products and power 2/......|    87.3   |    76.8   |    74.7   |
06       |   Chemicals and allied products 2/.............|   143.6   |   143.1   |   142.6   |
07       |   Rubber and plastic products..................|   123.3   |   122.9   |   123.0   |
08       |   Lumber and wood products.....................|   181.8   |   182.3   |   181.9   |
09       |   Pulp, paper, and allied products.............|   170.4   |   172.1   |   172.1   |
10       |   Metals and metal products....................|   131.3   |   130.2   |   129.7   |
11       |   Machinery and equipment......................|   125.5   |   125.4   |   125.3   |
12       |   Furniture and household durables.............|   130.8   |   131.1   |   131.0   |
13       |   Nonmetallic mineral products.................|   133.6   |   134.0   |   134.0   |
14       |   Transportation equipment.....................|   141.9   |   141.2   |   141.2   |
15       |   Miscellaneous products.......................|   152.4   |   153.6   |   153.5   |
         |                                                |           |           |           |
         | Industrial commodities less fuels and related  |           |           |           |
         |   products and power...........................|   139.4   |   139.3   |   139.2   |
         |                                                |           |           |           |
         |                                                |           |           |           |
         |             OTHER COMMODITY GROUPINGS          |           |           |           |
         |                                                |           |           |           |
01-1     | Fruits and melons, fresh and dry vegetables,   |           |           |           |
         |   and tree nuts................................|   112.8   |   122.1   |   120.7   |
01-2     | Grains.........................................|   107.1   |   105.2   |   107.2   |
01-3     | Slaughter livestock............................|    93.1   |    83.6   |    85.4   |
01-4     | Slaughter poultry..............................|   122.3   |   116.1   |   125.3   |
01-5     | Plant and animal fibers........................|   115.5   |   108.1   |   110.1   |
01-7     | Chicken eggs...................................|   148.5   |   103.2   |   118.5   |
01-8     | Hay, hayseeds, and oilseeds....................|   146.8   |   139.5   |   135.9   |
01-83    | Oilseeds.......................................|   134.8   |   126.9   |   123.4   |
01-9     | Other farm products............................|   161.7   |   171.8   |   155.6   |
02-1     | Cereal and bakery products.....................|   157.9   |   157.4   |   157.8   |
02-2     | Meats, poultry, and fish.......................|   116.9   |   113.3   |   111.2   |
02-22    | Processed poultry..............................|   116.0   |   114.7   |   116.7   |
02-5     | Sugar and confectionery........................|   135.3   |   134.6   |   134.6   |
02-6     | Beverages and beverage materials...............|   136.8   |   137.9   |   138.1   |
02-63    | Packaged beverage materials....................|   147.1   |   146.5   |   146.7   |
02-7     | Fats and oils..................................|   137.7   |   138.6   |   139.3   |
03-81    | Apparel........................................|   126.0   |   125.9   |   125.9   |
04-4     | Other leather and related products.............|   144.4   |   144.8   |   144.9   |
05-3     | Gas fuels 2/...................................|   114.8   |    79.8   |    79.3   |
05-4     | Electric power.................................|   128.0   |   127.2   |   126.5   |
05-7     | Refined petroleum products.....................|    66.3   |    54.6   |    50.8   |
06-3     | Drugs and pharmaceuticals......................|   221.2   |   223.6   |   224.7   |
06-5     | Agricultural chemicals and products............|   131.2   |   129.9   |   129.4   |
06-7     | Other chemicals and allied products............|   133.9   |   134.1   |   133.9   |
07-1     | Rubber and rubber products.....................|   115.5   |   115.4   |   115.2   |
07-11    | Rubber, except natural rubber..................|   117.8   |   117.0   |   115.4   |
07-13    | Miscellaneous rubber products..................|   138.3   |   138.5   |   138.6   |
07-2     | Plastic products...............................|   130.2   |   129.7   |   129.9   |
08-1     | Lumber.........................................|   188.5   |   187.9   |   187.4   |
09-1     | Pulp, paper, and products, excluding building  |           |           |           |
         |   paper and board..............................|   147.7   |   149.0   |   149.4   |
09-15    | Converted paper and paperboard products........|   150.0   |   152.1   |   153.4   |
10-1     | Iron and steel.................................|   127.2   |   126.8   |   125.9   |
10-2     | Nonferrous metals..............................|   132.7   |   128.2   |   127.1   |
10-25    | Nonferrous mill shapes.........................|   144.4   |   141.4   |   140.6   |
11-3     | Metalworking machinery and equipment...........|   145.8   |   146.9   |   147.2   |
11-4     | General purpose machinery and equipment........|   145.5   |   146.2   |   146.4   |
11-6     | Special industry machinery.....................|   157.5   |   158.2   |   158.5   |
11-7     | Electrical machinery and equipment.............|   121.8   |   121.7   |   121.7   |
11-9     | Miscellaneous machinery and equipment..........|   131.4   |   131.5   |   131.5   |
12-6     | Other household durable goods..................|   149.6   |   150.5   |   150.9   |
13-2     | Concrete ingredients...........................|   143.2   |   144.6   |   144.8   |
14-1     | Motor vehicles and equipment...................|   133.1   |   131.9   |   131.9   |
15-1     | Toys, sporting goods, small arms, etc..........|   131.6   |   132.1   |   132.1   |
15-4     | Photographic equipment and supplies............|   117.5   |   117.2   |   115.9   |
15-9     | Other miscellaneous products...................|   133.5   |   134.1   |   134.4   |
__________________________________________________________|___________|___________|___________|

1/  Data for November 1997 have been revised to reflect the availability of late reports and 
    corrections by respondents.  All data are subject to revision four months after 
    original publication.

2/  Prices of some items in this grouping are lagged 1 month.
Table 4.  Producer Price Indexes for the net output of major industry groups, not seasonally adjusted
____________________________________________________________________________________________________________________
                  |                                              |     |         Index         |  Percent change
  Industry        |                Industry 1/                   |Index|_______________________|to_Mar._1998_from:__
    code          |                                              |base |       |       |       |        |
                  |                                              |     |Nov.   |Feb.   |Mar.   |  Mar.  |  Feb.
                  |                                              |     |1997 2/|1998 2/|1998 2/|  1997  |  1998
__________________|______________________________________________|_____|_______|_______|_______|________|___________
                  |                                              |     |
                  |Total mining industries...................... |12/84|  93.2    74.5    72.0    -8.6    -3.4
       10         | Metal mining................................ |12/84|  78.9    75.8    74.6   -17.9    -1.6
       12         | Coal mining................................. |12/85|  91.0    89.7    90.3    -2.7      .7
       13         | Oil and gas extraction...................... |12/85|  98.0    73.2    69.7    -9.8    -4.8
       14         | Mining and quarrying of non-metallic         |     |
                  |  minerals, except fuels..................... |12/84| 129.7   131.0   131.3     2.8      .2
                  |                                              |     |
                  |Total manufacturing industries............... |12/84| 127.5   126.2   125.7    -1.6     -.4
       20         | Food and kindred products................... |12/84| 127.5   126.1   125.5    -2.0     -.5
       21         | Tobacco manufactures........................ |12/84| 219.3   223.8   223.8    10.1     0
       22         | Textile mill products....................... |12/84| 119.0   119.6   119.6      .7     0
       23         | Apparel and other finished products made     |     |
                  |  from fabrics and similar materials......... |12/84| 124.2   124.4   124.5     1.1      .1
       24         | Lumber and wood products, except furniture.. |12/84| 158.2   158.6   157.9     -.9     -.4
       25         | Furniture and fixtures...................... |12/84| 138.9   139.6   139.7     1.5      .1
       26         | Paper and allied products................... |12/84| 135.9   137.3   137.8     4.0      .4
       27         | Printing, publishing, and allied industries. |12/84| 171.1   173.1   173.0     3.0     -.1
       28         | Chemicals and allied products............... |12/84| 147.3   147.4   146.9     0       -.3
       29         | Petroleum refining and related products..... |12/84|  83.6    70.6    65.9   -24.5    -6.7
       30         | Rubber and miscellaneous plastic products... |12/84| 122.8   122.6   122.6      .2     0
       31         | Leather and leather products................ |12/84| 137.9   137.5   137.4      .1     -.1
       32         | Stone, clay, glass, and concrete products... |12/84| 127.8   128.0   128.0      .7     0
       33         | Primary metal industries.................... |12/84| 124.5   123.1   122.9    -1.5     -.2
       34         | Fabricated metal products, except machinery  |     |
                  |  and transportation equipment............... |12/84| 128.2   128.5   128.6     1.2      .1
       35         | Machinery, except electrical................ |12/84| 118.0   118.0   117.9    -1.0     -.1
       36         | Electrical and electronic machinery,         |     |
                  |  equipment, and supplies.................... |12/84| 110.8   110.6   110.6    -1.4     0
       37         | Transportation equipment.................... |12/84| 134.4   133.8   133.8    -1.1     0
       38         | Measuring and controlling instruments;       |     |
                  |  photographic, medical, optical goods;       |     |
                  |  watches, clocks............................ |12/84| 125.8   126.4   126.3      .6     -.1
       39         | Miscellaneous manufacturing industries...... |12/85| 129.1   129.7   129.6      .5     -.1
                  |                                              |     |
                  |Services industries                           |     |
       40         | Railroad transportation..................... |12/96| 100.9   101.1   101.9     1.8      .8
       42         | Motor freight transportation and warehousing |06/93| 109.0   110.8   110.6     1.8     -.2
       43         | United states postal service................ |06/89| 132.3   132.3   132.3     0       0
       44         | Water transportation........................ |12/92| 104.1   101.9   102.3    -1.7      .4
       45         | Transportation by air....................... |12/92| 123.4   123.7   124.8      .2      .9
       46         | Pipe lines, except natural gas.............. |12/86|  98.7    99.3    99.3      .5     0
       80         | Health services............................. |12/94| 106.2   107.1   107.2     1.2      .1
       81         | Legal services.............................. |12/96| 103.7   104.2   105.1     3.0      .9
____________________________________________________________________________________________________________________
1/ Indexes in this table are derived from the net-output-weighted industry price indexes shown in table 5.
   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 shown in table 6.
2/ The indexes for November 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                                |         |        |        |        |        |        
                                                       |   Oct.  |  Nov.  |  Dec.  |  Jan.  |  Feb.  |  Mar. 
                                                       |   1997  |  1997  |  1997  |  1998  |  1998  |  1998
_______________________________________________________|_________|________|________|________|________|_________
      Finished goods...................................|  131.8    131.6    131.4    130.5    130.4    130.0
        Finished consumer goods........................|  130.3    130.0    129.8    128.7    128.5    128.0
          Finished consumer foods......................|  134.7    134.3    134.1    133.5    134.1    133.6
            Crude......................................|  132.9    129.2    132.4    128.7    130.4    130.6
            Processed..................................|  134.8    134.6    134.2    133.9    134.3    133.8
          Finished consumer goods, excluding foods.....|  128.2    128.0    127.8    126.4    126.0    125.4
            Nondurable goods less foods................|  124.3    124.2    123.9    122.1    121.5    120.8
            Durable goods..............................|  133.7    133.3    133.4    133.1    133.0    132.9
        Capital equipment..............................|  138.0    137.9    137.8    137.7    137.6    137.6
          Manufacturing industries.....................|  137.6    137.6    137.6    137.8    137.8    137.9
          Nonmanufacturing industries..................|  138.1    137.9    137.8    137.6    137.4    137.5
                                                       |  
      Intermediate materials, supplies, and components.|  125.4    125.6    125.3    124.5    124.2    123.6
        Materials and components for manufacturing.....|  128.0    128.2    128.0    127.5    127.4    127.0
          Materials for food manufacturing.............|  122.1    124.1    123.0    120.3    122.5    121.4
          Materials for nondurable manufacturing.......|  129.9    130.0    130.1    130.0    129.3    128.6
          Materials for durable manufacturing..........|  132.3    132.1    131.4    130.5    130.6    129.9
          Components for manufacturing.................|  126.0    126.1    126.0    125.9    125.9    125.9
        Materials and components for construction......|  146.5    146.7    146.7    146.4    146.6    146.6
        Processed fuels and lubricants.................|   88.6     88.7     87.3     84.8     83.8     81.7
          Manufacturing industries ....................|   91.9     92.2     90.6     88.3     88.1     86.3
          Nonmanufacturing industries..................|   86.5     86.4     85.2     82.6     81.2     78.9
        Containers.....................................|  136.4    138.0    139.5    140.5    140.6    142.1
        Supplies.......................................|  135.9    136.1    136.0    135.4    135.2    134.9
          Manufacturing industries.....................|  140.1    140.3    140.3    140.3    140.4    140.6
          Nonmanufacturing industries..................|  133.7    134.0    133.8    133.0    132.7    132.3
            Feeds......................................|  122.3    123.8    122.8    116.0    111.1    107.4
            Other supplies.............................|  135.3    135.5    135.3    135.3    135.4    135.5
                                                       |  
      Crude materials for further processing...........|  113.2    115.0    108.2    103.3    100.7     99.1
        Foodstuffs and feedstuffs......................|  110.7    110.6    110.4    106.8    106.0    106.7
        Nonfood materials..............................|  110.7    113.8    102.7     97.1     93.3     90.2
          Nonfood materials except fuel 2/.............|  103.3    102.4     98.8     93.1     92.4     86.4
            Manufacturing 2/...........................|   94.7     93.8     90.2     84.8     84.2     78.5
            Construction...............................|  201.8    201.2    200.5    199.6    197.4    198.3
          Crude fuel 3/................................|  112.9    122.7     99.9     94.9     87.1     88.2
            Manufacturing industries...................|  108.7    117.4     97.0     92.0     85.2     85.7
            Nonmanufacturing industries................|  115.5    125.7    101.9     96.8     88.8     90.0
                                                       |  
                     Special groupings                 |  
                                                       |  
      Finished goods, excluding foods..................|  130.9    130.7    130.5    129.5    129.2    128.8
      Intermediate materials less foods and feeds......|  125.6    125.7    125.4    124.8    124.5    124.0
      Intermediate foods and feeds.....................|  122.4    124.3    123.2    119.2    119.1    117.2
      Crude materials less agricultural products 2/....|  110.3    113.5    102.2     96.6     92.5     89.5
                                                       |  
      Finished energy goods............................|   82.7     82.4     81.8     78.8     77.4     75.9
      Finished goods less energy.......................|  140.5    140.3    140.2    139.9    140.1    140.0
      Finished consumer goods less energy..............|  141.4    141.1    141.0    140.7    141.1    140.9
                                                       |  
      Finished goods less foods and energy.............|  142.6    142.5    142.5    142.3    142.5    142.5
      Finished consumer goods less foods and energy....|  145.6    145.5    145.5    145.3    145.5    145.6
      Consumer nondurable goods less foods and energy..|  154.4    154.5    154.4    154.3    154.8    155.0
                                                       |  
      Intermediate energy goods........................|   88.3     88.3     87.0     84.5     83.5     81.5
      Intermediate materials less energy...............|  133.6    133.8    133.7    133.3    133.2    133.0
      Intermediate materials less foods and energy.....|  134.3    134.4    134.4    134.2    134.1    134.0
                                                       |  
      Crude energy materials 2/........................|   92.8     97.1     83.4     77.3     72.3     69.2
      Crude materials less energy......................|  122.4    122.2    121.4    117.9    117.4    117.1
      Crude nonfood materials less energy 3/...........|  156.6    156.0    153.6    150.2    150.4    147.5
______________________________________________________________________________________________________________

  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 November 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.