FOR DATA ONLY:  (202) 691-5200     USDL 00-330
FOR TECHNICAL INFORMATION:         TRANSMISSION OF MATERIAL IN
(202) 691-7705                     THIS RELEASE IS EMBARGOED
MEDIA CONTACT:  (202) 691-5902     UNTIL 8:30 A.M. (E.S.T.),
                                   THURSDAY,
http://stats.bls.gov/ppihome.htm   NOVEMBER 9, 2000
                                     
                  Producer Price Indexes -- October 2000

     The Producer Price Index for Finished Goods rose 0.4 percent in
October, seasonally adjusted, the Bureau of Labor Statistics of the U.S.
Department of Labor reported today.  This index increased 0.9 percent in
September and declined 0.2 percent in August.  The index for finished goods
other than foods and energy edged down 0.1 percent in October, after rising
0.3 percent in the prior month.  Prices received by manufacturers of
intermediate goods increased 0.2 percent, following a 0.7-percent advance a
month earlier.  The crude goods index rose 3.4 percent, after jumping 5.3
percent in September.  (See table A.)

 Table A.  Monthly and annual percent changes in selected stage-of-processing price
 indexes, seasonally adjusted
 ______________________________________________________________________________________
|        |                                                         |         |         |
|        |                   Finished  goods                       |         |         |
|        |                                                         |         |         |
|        |---------------------------------------------------------|         |         |
|        |          |          |          |         |  Change in   |         |         |
|        |          |          |          | Except  |finished goods| Inter-  |         |
|        |          |          |          |foods and|from 12 months| mediate |  Crude  |
| Month  |  Total   |  Foods   |  Energy  | energy  |  ago(unadj.) | goods   |  goods  |
|--------------------------------------------------------------------------------------|
    1999                                                  
  Oct.       0.0       -0.3       -0.4        0.2         2.8          0.2      -2.4
  Nov.        .1        -.2        1.1        -.1         3.1           .2       5.2
  Dec.        .1          0         .7         .1         2.9           .3      -4.9
                                                                               
    2000                                                                       
  Jan.        .1         .2         .9        -.2         2.5           .5       2.6
  Feb.       1.1         .5        5.3         .3         4.0           .9       3.9
  Mar.        .7         .1        4.4         .1         4.3           .9       2.2
  Apr.       -.4        1.1       -3.9         .1         3.6          -.1      -1.5
  May         .1        -.2        -.2         .3         3.7          -.1       3.0
  June       r.9       r-.2       r6.4         r0        r4.4           .9      r8.4
  July      r-.1       r-.2      r-1.4         .1         4.1           .2     r-3.9
  Aug.       -.2        -.7        -.2         .1         3.3          -.2      -1.5
  Sept.       .9         .4        3.7         .3         3.3           .7       5.3
  Oct.        .4         .8        1.4        -.1         3.6           .2       3.4
 
 r=revised.  Some of the figures shown above and elsewhere in this release may differ 
 from those previously reported because data for June 2000 have been revised to 
 reflect the availability of late reports and corrections by respondents.

                                    -2-
     
     October's slower rate of increase in the index for finished goods was
primarily due to smaller price increases for finished energy goods, which
rose 1.4 percent in October after advancing 3.7 percent in September.
Prices for finished consumer goods other than foods and energy and for
capital equipment showed no change in October, following increases in the
prior month.  On the other hand, the index for finished consumer foods
increased 0.8 percent, after moving up 0.4 percent in September.

     For the first 10 months of 2000, the Producer Price Index for Finished
Goods increased at a 4.1-percent seasonally adjusted annual rate (SAAR),
after rising 2.9 percent for the 1999 calendar year.  Prices for finished
goods other than foods and energy rose at a 1.1-percent SAAR for the first
10 months of 2000, after posting a 0.9-percent gain in the previous
calendar year.  The index for intermediate goods increased at a 4.8-percent
SAAR from December 1999 to October 2000, following a 3.7-percent rise
during the 1999 calendar year.  Prices for crude goods advanced at a 28.7-
percent SAAR during the first 10 months of 2000, after a 15.3-percent
increase during all of 1999.

     Before seasonal adjustment, the Producer Price Index for Finished
Goods rose 0.6 percent in October to stand at 140.0 (1982=100).  From
October 1999 to October 2000, prices for finished goods rose 3.6 percent.
During the same period, the finished energy goods index advanced 19.4
percent, prices for finished goods other than foods and energy rose 1.0
percent, and prices for finished consumer foods increased 1.5 percent.
Prices received by manufacturers of intermediate goods rose 4.6 percent for
the 12 months ended in October, and the index for crude goods advanced 23.4
percent during the same period.
 
Table B.  Monthly and annual percent changes in selected price indexes for 
intermediate goods and crude goods, seasonally adjusted
 __________________________________________________________________________________
|      |                                     |                                     |
|      |       Intermediate goods            |       Crude goods                   |
|      |                                     |                                     |
|      |---------------------------------------------------------------------------|
|      |       |        |         |Change in |       |         |         | Change  |
|      |       |        |         | interme- |       |         |         |in crude |
|      |       |        |         |  diate   |       |         |         | goods   |
|      |       |        |         |goods from|       |         |         | from 12 |
|      |       |        |Excluding|12 months |       |         |Excluding| months  |
|      |       |        |foods and|months ago|       | Energy  |foods and|  ago    |
|Month | Foods | Energy | energy  | (unadj.) | Foods | (unadj.)| energy  |(unadj.) |
|----------------------------------------------------------------------------------|
   1999                                                         
 Oct.      0.8     -0.8      0.2        2.2      0.1     -7.0       2.4      10.6
 Nov.      -.6      1.8       .1        2.8      1.0     11.5       1.0      16.7
 Dec.     -1.9      1.4       .1        3.7     -2.0    -11.1       2.5      15.3
                                                                                  
   2000                                                                           
 Jan.       .1      1.8       .4        4.1       .7      4.7       2.3      17.4
 Feb.       .5      4.3       .3        5.4       .6      8.9        .6      25.1
 Mar.      1.0      3.6       .4        5.9      3.6      2.3       -.5      26.9
 Apr.       .8     -2.8       .4        5.3      1.5     -4.5      -1.0      22.2
 May        .7     -1.0       .1        5.0     -1.4      8.8       -.2      19.0
 June       .2     r5.1       .1       r5.5    r-2.7    r22.6     r-1.6     r29.0
 July      -.7      r.3       .2        5.0    r-2.9    r-5.5     r-1.7      23.4
 Aug.     -2.5       .3      -.1        4.3     -4.5       .6      -1.3      15.6
 Sept.     1.1      4.1        0        4.5      3.9      8.1        .3      16.3
 Oct.       .6      1.1        0        4.6      3.5      4.6       -.6      23.4

r=revised.  Some of the figures shown above and elsewhere in this release may 
differ from those previously reported because data for June 2000 have been 
revised to reflect the availability of late reports and corrections by 
respondents.


                                    -3-

Finished goods

     The finished energy goods index rose 1.4 percent in October, after
advancing 3.7 percent last month.  October price increases for liquefied
petroleum gas, residential natural gas, and residential electric power
outweighed falling prices for gasoline, home heating oil, and diesel fuel.

     The index for finished consumer goods other than foods and energy
showed no change in October, after rising 0.4 percent in September.
Passenger car prices declined 1.8 percent in October, following a 1.4-
percent increase a month ago.  The indexes for light motor trucks and men's
and boys' apparel also fell, after rising in September.  In accordance with
usual practice, most new model year passenger cars and light trucks were
introduced into the PPI in October.  (See "Report on Quality Changes for
2001 Model Vehicles.")  Price increases for soaps and synthetic detergents,
alcoholic beverages, and for toys, games, and children's vehicles slowed
from September to October.  The periodical circulation index decreased,
after showing no change in September.  By contrast, prices for prescription
drugs turned up 1.6 percent, following a 0.1-percent decrease last month.
The index for women's apparel also rose, after falling in September.
Prices for tobacco products and household appliances increased, following
no change in the prior month.

      The capital equipment index showed no change in October, after edging
up 0.2 percent a month ago.  Rising prices for civilian aircraft, heavy
motor trucks, transformers, x-ray and electromedical equipment, and for
pumps and compressors offset falling prices for passenger cars, light motor
trucks, commercial furniture, electronic computers, and communication and
related equipment.

     The index for finished consumer foods rose 0.8 percent in October,
after rising 0.4 percent in the previous month.  Prices for eggs for fresh
use turned up 21.1 percent, following a 16.9-percent drop in September.
The indexes for finfish and shellfish, soft drinks, pork, and for beef and
veal also rose, after falling in the prior month.  Dairy product prices
fell less than a month ago.  By contrast, the index for fresh fruits and
melons rose only 3.5 percent, after surging 27.4 percent in September.
Prices for processed young chickens, fresh and dry vegetables, and
processed turkeys also rose less than in the prior month.  The index for
shortening and cooking oils turned down, following an increase last month.

Intermediate goods

     The Producer Price Index for Intermediate Materials, Supplies, and
Components advanced 0.2 percent in October, after registering a 0.7-percent
gain in September.  A slowing rate of increase for intermediate energy
goods accounted for most of this deceleration.  Prices for materials for
durable manufacturing and materials and components for construction turned
down, following increases a month ago.  The index for intermediate foods
and feeds rose less than in the prior month.  By contrast, prices for
materials for nondurable manufacturing turned up, after declining a month
earlier.  Excluding foods and energy, the intermediate materials index
showed no change for the second consecutive month.  (See table B.)

     Intermediate energy goods prices advanced 1.1 percent in October,
after posting a 4.1-percent gain in September.  Rising prices for liquefied
petroleum gas, residual fuels, commercial electric power, industrial
electric power, commercial natural gas, and industrial natural gas
outweighed falling prices for gasoline, diesel fuel, and jet fuels.

                                    -4-
                                     
     Prices for materials for durable manufacturing decreased 0.2 percent
in October, following a 0.3-percent gain in September.  The index for
copper cathode and refined copper fell 2.8 percent, after registering a 6.6-
percent increase in the prior month.  Prices for primary aluminum (except
extrusion billet) showed no change, following a 2.7-percent rise a month
ago.  The indexes for aluminum mill shapes, copper and brass mill shapes,
and plywood advanced less than in the previous month.  Prices for flat
glass and zinc turned down, after gaining a month earlier.  On the other
hand, the index for hot rolled sheet and strip turned up 0.6 percent in
October, following a 0.4-percent drop in September.  Prices for cold
finished bars also rose, after falling in the prior month.  The index for
cold rolled sheet and strip declined less than a month ago, while prices
for cement advanced, after showing no change in the previous month.

     Prices for materials and components for construction edged down 0.1
percent in October, following a 0.1-percent rise in September.  The gypsum
products index fell 6.2 percent, after posting a 3.5-percent decline a
month earlier.  Prices for nonferrous wire and cable, plywood, fabricated
structural metal products, and switchgear and switchboard equipment
increased less than in the prior month.  The index for millwork turned
down, after showing no change a month ago.  By contrast, prices for asphalt
felts and coatings advanced 1.2 percent in October, following a 2.2-percent
decrease in September.  The indexes for softwood lumber and plastic
construction products fell less than in the previous month.

     Prices for intermediate foods and feeds advanced 0.6 percent in
October, after registering a 1.1-percent gain in September.  The index for
prepared animal feeds rose 0.7 percent, following a 3.2-percent jump a
month earlier.  Prices for crude vegetable oils; natural, processed, and
imitation cheese; and dry, condensed, and evaporated milk products turned
down, after increasing in the prior month.  The snack chips index gained
less than a month ago.  On the other hand, beef and veal prices advanced
1.6 percent on October, following a 1.3-percent drop in September.  The
indexes for refined sugar and pork also rose, after falling in the previous
month.  Flour prices increased more than a month earlier.

     The index for materials for nondurable manufacturing advanced 0.1
percent in October, following a 0.5-percent decline in September.  Prices
for primary basic organic chemicals increased 0.2 percent, after posting a
5.6-percent decrease in the prior month.  The plastic resins and materials
index showed no change, following a 2.8-percent drop a month ago.  Prices
for phosphates and processed yarns and threads turned up, after falling in
the previous month.  The index for paper gained 0.5 percent, after showing
no change a month earlier.  Prices for basic inorganic chemicals declined
less than in the prior month.  By contrast, the paint materials index
turned down 1.3 percent in October, following a 0.8-percent rise in
September.  Prices for synthetic rubber and leather also fell, after
advancing a month ago.

Crude goods

     The Producer Price Index for Crude Materials for Further Processing
increased 3.4 percent in October, following a 5.3-percent advance in
September.  Prices for crude energy materials and for crude foodstuffs and
feedstuffs also rose at a slower rate than in the prior month.  The index
for basic industrial materials turned down, after rising in the previous
month.  (See table B.)

     The index for crude energy materials posted a 4.6-percent rise in
October, following an 8.1-percent advance in September.  A 12.3-percent
increase in natural gas prices outweighed a 5.0-percent decline in the
crude petroleum index and a 0.2-percent decrease in coal prices.

                                    -5-
                                     
     The index for basic industrial materials decreased 0.6 percent in
October, after posting a 0.3-percent increase in September.  Prices for
iron and steel scrap dropped 6.6 percent, following a 0.7-percent gain in
the prior month.  The indexes for leaf tobacco and aluminum base scrap also
turned down, after rising a month ago.  Prices for copper ores and for
construction sand, gravel, and crushed stone rose less than in the previous
month.  Conversely, the wastepaper index declined 5.0 percent in October,
following an 8.7-percent drop in September.  Prices for cattle hides rose
more than a month earlier.  The indexes for softwood logs and iron ores
advanced, after falling last month.

     The index for crude foodstuffs and feedstuffs increased 3.5 percent in
October, compared to a 3.9-percent rise in September.  Leading this
deceleration were fluid milk prices, which dropped 5.4 percent in October,
after edging up 0.3 percent a month ago.  Prices for slaughter broilers and
fryers; slaughter hogs; and fresh fruits and melons rose less than in the
previous month.  On the other hand, the index for slaughter cattle
increased 3.0 percent in October, after registering a 2.0-percent decline
in September.  Corn and wheat prices advanced at a faster rate than in
September.

Net output price indexes for mining, manufacturing, and services industries

Mining.  The Producer Price Index for the Net Output of Total Domestic
Mining Industries advanced 5.0 percent in October, after posting a 6.2-
percent gain in September.  (Net output price indexes are not seasonally
adjusted.)  Prices received by the crude petroleum, natural gas, and
natural gas liquids industry increased 6.2 percent, following an 8.1-
percent rise in the prior month.  The index for the oil and gas well
drilling industry turned down, after advancing a month earlier.  Prices
received by the bituminous coal and lignite industry showed no change,
after increasing in the previous month, while the index for the copper ores
industry rose less than a month ago.  By contrast, prices received by the
iron ores industry turned up 2.3 percent, following a 2.2-percent decline
in September.  The index for the construction sand and gravel industry
advanced more than in the prior month.  In October, the Producer Price
Index for the Net Output of Total Domestic Mining Industries stood at 128.7
(December 1984 = 100), 46.8 percent above its year-ago level.

Manufacturing.  The Producer Price Index for the Net Output of Total
Domestic Manufacturing Industries edged up 0.1 percent in October, after
registering a 0.9-percent gain in September.  In October, the industry
groupings for transportation equipment; chemicals and allied products; food
and kindred products; printing, publishing, and allied industries;
electrical and electronic machinery and equipment; and tobacco manufactures
experienced rising prices.  Conversely, prices received by the petroleum
refining and related products; the stone, clay, glass, and concrete
products; and the measuring and controlling instruments industry groups
displayed falling prices.  In October, the Producer Price Index for the Net
Output of Total Domestic Manufacturing Industries stood at 134.8 (December
1984 = 100), 3.5 percent above its year-ago level.

Services.  Among services industries in October, advancing prices were
observed for real estate agents and managers, general medical and surgical
hospitals, skilled and intermediate care facilities, the non-local trucking
industry, the cable and pay television services industry, and life
insurance carriers.  By contrast, operators and lessors of nonresidential
buildings, the telecommunications (except radiotelephone) industry, the
scheduled air transportation industry, and offices of physicians
experienced declining prices in October.

                                   *****
            Producer Price Index data for November 2000 will be
       released on Thursday, December 14, 2000 at 8:30 a.m. (E.S.T.)

                                    -6-
                                     
              Improved Quality Adjustment for Microprocessors

     Effective with the release of January 2001 data, the Bureau of Labor
Statistics will implement a new quality valuation methodology for
microprocessors designed and sold for computer applications.  This new
quality adjustment methodology views changes in the processing power of
microprocessors as changes in quality and permits the explicit estimation
of their value.  The new approach replaces current procedures which have
generally been limited to considering price differences between a new
microprocessor and its predecessor as a measure of the value of the quality
difference between the two.

For additional information, see the October 2000 issue of the Producer
Price Index Detailed Report, or contact the Section of Index Analysis and
Public Information at (ppi-info@BLS.gov) or (202) 691-7705.
Table 1.  Producer price indexes and percent changes by stage of processing                                                    
 (1982=100)                                                                                                                     
 _______________________________________________________________________________________________________________________________
                                                  |          |                       |Unadjusted     |                          
                                                  |          |                       |  percent      |Seasonally adjusted       
                                                  | Relative |    Unadjusted index   |change to      |percent change from:      
                     Grouping                     |importance|                       |Oct. 2000 from:|                          
                                                  |          |_______________________|_______________|__________________________
                                                  |   Dec.   |       |       |       |       |       |       |         |        
                                                  |           June   |Sept.  |Oct.   |  Oct. | Sept. |July to|Aug.  to |Sept. to
                                                  |   1999 1/|2000 2/|2000 2/|2000 2/|  1999 | 2000  |  Aug. |   Sept. |  Oct.  
 _________________________________________________|__________|_______|_______|_______|_______|_______|_______|_________|________
                                                  |                                                                             
 Finished goods...................................|  100.000   138.6   139.2   140.0     3.6    0.6     -0.2      0.9     0.4   
   Finished consumer goods........................|   75.611   139.1   139.9   140.5     4.5     .4      -.3      1.1      .5   
     Finished consumer foods......................|   22.882   137.6   137.1   137.8     1.5     .5      -.7       .4      .8   
       Crude......................................|    1.619   116.6   124.3   132.6    10.3    6.7      1.3      4.4     8.1   
       Processed..................................|   21.263   139.2   138.2   138.2      .8    0        -.9       .1      .3   
     Finished consumer goods, excluding foods.....|   52.729   139.6   140.8   141.5     5.8     .5      0        1.3      .4   
       Nondurable goods less foods................|   36.838   140.5   142.7   142.4     8.3    -.2       .1      1.7      .7   
       Durable goods..............................|   15.891   133.4   132.5   135.1      .1    2.0      -.1       .4     -.4   
   Capital equipment..............................|   24.389   138.5   138.4   139.8      .9    1.0      0         .2     0     
     Manufacturing industries.....................|    6.436   139.5   139.5   139.9      .9     .3       .1       .1      .1   
     Nonmanufacturing industries..................|   17.953   138.1   137.9   139.7     1.0    1.3      0         .3     -.1   
                                                  |                                                                             
 Intermediate materials, supplies, and components.|  100.000   129.8   131.0   130.8     4.6    -.2      -.2       .7      .2   
   Materials and components for manufacturing.....|   46.550   128.6   128.5   128.5     2.1    0        -.3      -.1     0     
     Materials for food manufacturing.............|    3.339   120.6   118.9   119.1    -2.5     .2     -1.6       .3      .4   
     Materials for nondurable manufacturing.......|   15.689   133.7   133.6   133.8     4.8     .1      -.5      -.5      .1   
     Materials for durable manufacturing..........|   10.279   129.4   129.4   129.2     2.1    -.2      -.2       .3     -.2   
     Components for manufacturing.................|   17.243   126.2   126.3   126.2      .4    -.1      0         .2     -.1   
   Materials and components for construction......|   13.727   151.2   150.3   150.2      .7    -.1      -.1       .1     -.1   
   Processed fuels and lubricants.................|   13.649   103.3   110.0   108.9    21.9   -1.0       .3      4.1     1.1   
     Manufacturing industries ....................|    4.947   102.3   106.8   106.5    16.3    -.3       .5      1.9     2.0   
     Nonmanufacturing industries..................|    8.702   103.6   111.4   109.8    25.1   -1.4       .2      5.4      .7   
   Containers.....................................|    3.953   153.3   153.5   153.4     4.9    -.1      -.1       .2     -.1   
   Supplies.......................................|   22.121   137.1   137.3   137.6     2.1     .2      -.3       .4      .1   
     Manufacturing industries.....................|    5.089   143.4   144.2   144.3     2.1     .1       .1       .1      .1   
     Nonmanufacturing industries..................|   17.032   134.3   134.4   134.7     2.0     .2      -.4       .4      .1   
       Feeds......................................|    1.160    97.1    93.6    94.5     4.7    1.0     -5.2      3.8     1.0   
       Other supplies.............................|   15.872   138.9   139.3   139.6     1.8     .2      -.1       .1      .1   
                                                  |                                                                             
 Crude materials for further processing...........|  100.000   125.6   124.8   128.3    23.4    2.8     -1.5      5.3     3.4   
   Foodstuffs and feedstuffs......................|   38.999   101.9    97.6    99.5      .7    1.9     -4.5      3.9     3.5   
   Nonfood materials..............................|   61.001   137.3   139.1   143.5    38.2    3.2       .1      6.0     3.3   
     Nonfood materials except fuel 3/.............|   38.153   121.7   124.1   120.4    19.6   -3.0       .4      4.6    -2.8   
       Manufacturing 3/...........................|   36.758   112.1   114.6   111.1    20.6   -3.1       .6      4.7    -2.9   
       Construction...............................|    1.395   195.7   184.0   184.5    -7.3     .3     -3.0      -.9      .3   
     Crude fuel 4/................................|   22.848   147.8   148.5   163.7    64.0   10.2      -.4      7.8    10.2   
       Manufacturing industries...................|    1.933   147.7   149.0   164.7    65.4   10.5       .5      7.6    10.5   
       Nonmanufacturing industries................|   20.915   150.5   151.0   166.5    63.9   10.3      -.4      7.7    10.3   
                                                  |                                                                             
                Special groupings                 |                                                                             
                                                  |                                                                             
 Finished goods, excluding foods..................|5/ 77.118   138.8   139.6   140.5     4.3     .6      0        1.0      .3   
 Intermediate materials less foods and feeds......|6/ 95.501   130.7   132.1   131.8     4.9    -.2      -.2       .7      .2   
 Intermediate foods and feeds.....................|6/  4.499   113.4   111.2   111.6     -.7     .4     -2.5      1.1      .6   
 Crude materials less agricultural products 3/ 7/.|8/ 58.794   139.2   140.7   145.3    39.3    3.3      -.2      6.0     3.3   
                                                  |                                                                             
 Finished energy goods............................|5/ 13.780    97.7   100.6    99.7    19.4    -.9      -.2      3.7     1.4   
 Finished goods less energy.......................|5/ 86.220   144.7   144.6   145.8     1.1     .8      -.1       .3      .2   
 Finished consumer goods less energy..............|5/ 61.831   147.3   147.1   148.3     1.2     .8      -.3       .4      .3   
                                                  |                                                                             
 Finished goods less foods and energy.............|5/ 63.338   147.5   147.5   149.0     1.0    1.0       .1       .3     -.1   
 Finished consumer goods less foods and energy....|5/ 38.949   153.6   153.6   155.1     1.0    1.0       .1       .4     0     
 Consumer nondurable goods less foods and energy..|5/ 23.058   169.4   170.3   170.8     1.6     .3       .3       .3      .3   
                                                  |                                                                             
 Intermediate energy goods........................|6/ 13.762   103.0   109.6   108.5    21.9   -1.0       .3      4.1     1.1   
 Intermediate materials less energy...............|6/ 86.238   135.5   135.4   135.4     1.9    0        -.3       .1     0     
 Intermediate materials less foods and energy.....|6/ 81.739   137.0   137.0   137.0     2.1    0        -.1      0       0     
                                                  |                                                                             
 Crude energy materials 3/........................|8/ 39.555   130.6   134.3   140.5    58.4    4.6       .6      8.1     4.6   
 Crude materials less energy......................|8/ 60.445   113.4   109.1   110.1      .3     .9     -3.4      2.6     2.1   
 Crude nonfood materials less energy 4/...........|8/ 21.446   146.7   142.6   141.2     -.4   -1.0     -1.3       .3     -.6   
                                                  |                                                                             
 _______________________________________________________________________________________________________________________________
                                                                                                                                
   1/  Comprehensive relative importance figures are initially computed          3/  Includes crude petroleum.                  
       after the publication of December indexes and are recalculated            4/  Excludes crude petroleum.                  
       after final December indexes are available.  The first-published          5/  Percent of total finished goods.           
       and final December relative importances initially appear,                 6/  Percent of total intermediate materials.   
       respectively, in the release tables containing January and May data.      7/  Formerly titled "Crude materials for       
   2/  The indexes for June 2000 have been recalculated to incorporate               further processing, excluding crude        
       late reports and corrections by respondents.  All indexes                     foodstuffs and feedstuffs, plant and       
       are subject to revision 4 months after original publication.                  animal fibers, oilseeds, and leaf tobacco."
                                                                                 8/  Percent of total crude materials.

Table 2.  Producer price indexes and percent changes for selected commodity groupings by stage of processing                         
 (1982=100 unless otherwise indicated)                                                                                                
 ____________________________________________________________________________________________________________________________________ 
            |                                                       |                       |Unadjusted     |                         
            |                                                       |                       | percent       |Seasonally adjusted      
            |                                                       |   Unadjusted index    |change to      |percent change from:     
  Commodity |                                                       |                       |Oct. 2000 from:|                         
    code    |                      Grouping                         |_______________________|_______________|________________________ 
            |                                                       |       |       |       |       |       |       |       |         
            |                                                       |June   |Sept.  |Oct.   | Oct.  | Sept. |July to|Aug. to|Sept.to  
            |                                                       |2000 1/|2000 1/|2000 1/| 1999  | 2000  |  Aug. |  Sept.|  Oct.   
 ___________|_______________________________________________________|_______|_______|_______|_______|_______|_______|_______|________ 
            |                                                       |                                                                 
            |FINISHED GOODS.........................................| 138.6   139.2   140.0     3.6    0.6     -0.2     0.9     0.4   
            | FINISHED CONSUMER GOODS...............................| 139.1   139.9   140.5     4.5     .4      -.3     1.1      .5   
            |  FINISHED CONSUMER FOODS..............................| 137.6   137.1   137.8     1.5     .5      -.7      .4      .8   
            |                                                       |                                                                 
 01-11      |   Fresh fruits and melons 2/..........................|  84.9    90.6    93.8   -13.1    3.5    -14.1    27.4     3.5   
 01-13      |   Fresh and dry vegetables 2/.........................| 120.9   137.3   143.9    31.7    4.8      7.5     7.2     4.8   
 01-71-07   |   Eggs for fresh use (Dec. 1991=100)..................|  81.9    77.7    90.7    47.5   16.7     19.4   -16.9    21.1   
 02-11      |   Bakery products 2/..................................| 182.3   183.3   184.1     3.0     .4      -.2      .4      .4   
 02-13      |   Milled rice 2/......................................| 101.8    97.8    94.0   -13.5   -3.9      1.3    -3.7    -3.9   
 02-14-02   |   Pasta products (June 1985=100) 2/...................| 121.5   121.5   121.5     -.4    0        -.1      .2     0     
 02-21-01   |   Beef and veal.......................................| 118.6   109.4   111.4     -.6    1.8     -3.4    -1.3     1.6   
 02-21-04   |   Pork................................................| 121.3   109.1   108.6     8.6    -.5     -9.0     -.7     2.3   
 02-22-03   |   Processed young chickens............................| 108.3   117.9   115.7     5.3   -1.9      1.0     6.5     1.0   
 02-22-06   |   Processed turkeys...................................|  96.7   103.4   106.2     6.7    2.7      -.3     3.9     1.8   
 02-23      |   Finfish and shellfish...............................| 195.0   189.7   194.1    -1.3    2.3      2.5    -5.8     2.3   
 02-3       |   Dairy products......................................| 134.0   135.6   134.6    -6.2    -.7     -3.5    -2.2    -1.6   
 02-4       |   Processed fruits and vegetables 2/..................| 128.9   127.6   128.2      .1     .5      -.4     -.2      .5   
 02-55      |   Confectionery end products 2/.......................| 171.0   171.2   171.3      .4     .1       .1     -.2      .1   
 02-62      |   Soft drinks.........................................| 144.6   144.0   144.3     3.7     .2      -.1     -.3      .1   
 02-63-01   |   Roasted coffee 2/...................................| 132.9   130.5   130.5    -1.2    0       -2.1      .3     0     
 02-78      |   Shortening and cooking oils 2/......................| 132.0   132.1   130.8    -5.4   -1.0      -.6     1.2    -1.0   
            |                                                       |                                                                 
            |  FINISHED CONSUMER GOODS EXCLUDING FOODS..............| 139.6   140.8   141.5     5.8     .5      0       1.3      .4   
            |                                                       |                                                                 
 02-61      |   Alcoholic beverages.................................| 141.2   141.4   142.3     3.9     .6      -.3     3.0      .3   
 03-81-01   |   Women's apparel 2/..................................| 124.6   123.0   123.8      .1     .7      -.1     -.2      .7   
 03-81-02   |   Men's and boys' apparel.............................| 133.0   133.4   133.3      .3    -.1      -.2      .3     -.1   
 03-81-03   |   Girls', children's, and infants' apparel 2/.........| 117.5   116.8   116.6     -.3    -.2     -2.6     -.2     -.2   
 03-82      |   Textile housefurnishings 2/.........................| 122.5   121.9   121.1    -1.1    -.7       .1     -.7     -.7   
 04-3       |   Footwear 2/.........................................| 144.8   145.1   145.1      .3    0         .1     0       0     
 05-41      |   Residential electric power (Dec. 1990=100)..........| 113.6   115.6   113.3     2.5   -2.0      1.0     -.3      .8   
 05-51      |   Residential gas (Dec. 1990=100).....................| 131.4   144.5   153.2    30.6    6.0      -.3     4.9     5.2   
 05-71      |   Gasoline............................................| 110.3   104.7    97.8    34.0   -6.6     -2.8     9.3    -1.8   
 05-73-02-01|   Fuel oil No. 2......................................|  88.1   109.9   108.4    70.4   -1.4      2.0    13.4    -3.4   
 06-35      |   Pharmaceutical preps, ethical (Prescription) 2/.....| 342.3   346.6   352.0     3.8    1.6       .3     -.1     1.6   
 06-36      |   Pharmaceutical preps,proprietary (Over-counter) 2/..| 188.3   188.3   187.1      .2    -.6      -.2      .1     -.6   
 06-71      |   Soaps and synthetic detergents 2/...................| 127.3   129.4   130.4     2.4     .8       .1     1.6      .8   
 06-75      |   Cosmetics and other toilet preparations 2/..........| 137.2   136.9   137.2      .5     .2      -.2     -.1      .2   
 07-12      |   Tires, tubes, tread, etc 2/.........................|  93.5    92.9    93.0     1.3     .1      -.6    -1.5      .1   
 09-15-01   |   Sanitary papers and health products 2/..............| 147.1   147.1   148.2     2.4     .7      -.3      .4      .7   
 09-31-01   |   Newspaper circulation 2/............................| 208.4   208.5   208.8      .8     .1      0       0        .1   
 09-32-01   |   Periodical circulation..............................| 200.1   200.6   198.5      .7   -1.0      0       0       -.9   
 09-33      |   Book publishing.....................................| 218.0   217.2   218.3     1.9     .5       .2     -.6     -.7   
 12-1       |   Household furniture 2/..............................| 152.7   153.0   153.6     1.5     .4      0        .1      .4   
 12-3       |   Floor coverings 2/..................................| 130.3   129.1   129.7     1.6     .5      -.1     -.8      .5   
 12-4       |   Household appliances ...............................| 107.9   106.1   106.9    -1.1     .8      -.9     0        .8   
 12-5       |   Home electronic equipment 2/........................|  72.3    71.2    71.2    -2.1    0        -.3     -.3     0     
 12-62      |   Household glassware.................................| 165.6   165.8   167.5     1.8    1.0       .2     -.2     1.2   
 12-64      |   Household flatware 2/...............................| 140.1   144.8   144.8     3.9    0        3.9     0       0     
 12-66      |   Lawn and garden equip., ex. tractors 2/.............| 131.4   131.5   132.3      .4     .6      -.1     0        .6   
 14-11-01   |   Passenger cars......................................| 131.1   128.9   135.0    -1.1    4.7      -.3     1.4    -1.8   
 15-11      |   Toys, games, and children's vehicles................| 121.8   122.1   122.2     -.4     .1       .2      .4      .1   
 15-12      |   Sporting and athletic goods 2/......................| 125.9   125.9   126.0      .1     .1      -.4     -.5      .1   
 15-2       |   Tobacco products 2/.................................| 393.2   402.5   403.8     2.3     .3      2.3     0        .3   
 15-5       |   Mobile homes 2/.....................................| 161.6   162.1   162.1     1.4    0         .5     0       0     
 15-94-02   |   Jewelry, platinum, & karat gold 2/..................| 127.2   127.2   127.2     -.5    0        -.3     -.1     0     
 15-94-04   |   Costume jewelry and novelties 2/....................| 142.0   140.9   142.0     1.4     .8      0       0        .8   
            |                                                       |                                                                 
            | CAPITAL EQUIPMENT.....................................| 138.5   138.4   139.8      .9    1.0      0        .2     0     
            |                                                       |                                                                 
 11-1       |   Agricultural machinery and equipment 2/.............| 153.6   152.8   153.0      .3     .1       .1      .1      .1   
 11-2       |   Construction machinery and equipment................| 148.6   148.8   148.9      .8     .1       .1      .2      .1   
 11-37      |   Metal cutting machine tools 2/......................| 162.0   162.0   162.4      .9     .2       .1      .1      .2   
 11-38      |   Metal forming machine tools 2/......................| 162.1   163.3   163.0     1.9    -.2       .1      .6     -.2   
 11-39      |   Tools, dies, jigs, fixtures, and ind. molds 2/......| 141.2   141.1   141.1      .6    0        -.1     0       0     
 11-41      |   Pumps, compressors, and equipment...................| 153.7   154.4   155.0     1.8     .4       .5      .1      .4   
 11-44      |   Industrial material handling equipment 2/...........| 134.7   135.1   135.3     1.7     .1      0        .1      .1   
 11-51      |   Electronic computers (Dec. 1998=100) 2/.............|  72.7    70.8    70.3   -14.0    -.7     -2.2     -.3     -.7   
 11-62      |   Textile machinery 2/................................| 156.6   156.4   156.5     1.4     .1      0       -.1      .1   
 11-64      |   Paper industries machinery (June 1982=100)..........| 165.0   164.8   164.8     1.0    0         .1     -.1      .1   
 11-65      |   Printing trades machinery 2/........................| 141.7   142.5   143.2     1.4     .5       .3      .1      .5   
 11-74      |   Transformers and power regulators 2/................| 137.0   135.1   136.1     1.2     .7      -.4     -.6      .7   
 11-76      |   Communication & related equip. (Dec. 1985=100)......| 110.4   110.7   110.6     -.7    -.1      0       -.1     -.1   
 11-79-05   |   X-ray and electromedical equipment 2/...............| 102.3   102.1   102.3    -1.0     .2      -.7     -.1      .2   
 11-91      |   Oil field and gas field machinery ..................| 128.0   128.1   129.6     2.7    1.2       .2      .1      .9   
 11-92      |   Mining machinery and equipment 2/...................| 146.0   146.6   146.5     1.5    -.1       .1      .2     -.1   
 11-93      |   Office and store machines and equipment 2/..........| 112.3   113.8   113.8     1.1    0        -.4      .5     0     
 12-2       |   Commercial furniture 2/.............................| 158.5   158.7   158.5      .8    -.1      0        .1     -.1   
 14-11-05   |   Light motor trucks..................................| 156.3   154.0   161.5     -.6    4.9      -.1     1.5    -1.2   
 14-11-06   |   Heavy motor trucks 2/...............................| 147.7   148.4   148.8     1.0     .3       .4     -.3      .3   
 14-14      |   Truck trailers 2/...................................| 138.6   140.5   140.5     2.3    0         .6     -.1     0     
 14-21-02   |   Civilian aircraft (Dec. 1985=100)...................| 158.8   160.3   163.0     7.0    1.7       .3      .1     1.4   
 14-31      |   Ships (Dec. 1985=100) 2/............................| 146.5   146.5   146.5      .5    0        0       0       0     
 14-4       |   Railroad equipment 2/...............................| 135.8   135.8   135.9      .1     .1      -.1     0        .1   
            |                                                       |                                                                 
            |INTERMEDIATE MATERIALS, SUPPLIES, AND COMPONENTS.......| 129.8   131.0   130.8     4.6    -.2      -.2      .7      .2   
            |                                                       |                                                                 
            | INTERMEDIATE FOODS AND FEEDS..........................| 113.4   111.2   111.6     -.7     .4     -2.5     1.1      .6   
            |                                                       |                                                                 
 02-12-03   |   Flour 2/............................................| 104.2   103.6   108.6     6.3    4.8       .7      .5     4.8   
 02-53      |   Refined sugar 2/....................................| 111.2   104.3   105.0   -12.9     .7     -2.1    -4.9      .7   
 02-54      |   Confectionery materials.............................|  94.1    93.4    93.9     -.6     .5      -.6     -.3     2.3   
 02-72      |   Crude vegetable oils 2/.............................|  75.6    74.3    71.7   -11.6   -3.5     -7.7    10.9    -3.5   
 02-9       |   Prepared animal feeds 2/............................| 105.0   102.3   103.0     3.7     .7     -4.1     3.2      .7   
            |                                                       |                                                                 
            | INTERMEDIATE MATERIALS LESS FOODS AND FEEDS...........| 130.7   132.1   131.8     4.9    -.2      -.2      .7      .2   
            |                                                       |                                                                 
 03-1       |   Synthetic fibers 2/.................................| 108.1   108.0   108.3     4.5     .3       .7      .2      .3   
 03-2       |   Processed yarns and threads 2/......................| 108.1   107.6   107.8     -.1     .2      -.1     -.4      .2   
 03-3       |   Gray fabrics 2/.....................................| 111.6   113.1   113.1     -.2    0        0       -.4     0     
 03-4       |   Finished fabrics....................................| 122.6   123.1   123.0     0      -.1      0       0       -.1   
 03-83-03   |   Industrial textile products 2/......................| 131.3   131.8   131.9     1.9     .1       .2      .2      .1   
 04-2       |   Leather.............................................| 178.6   184.9   184.8     3.9    -.1      1.9     1.0     -.7   
 05-32      |   Liquefied petroleum gas 2/..........................| 112.6   130.9   146.2    45.8   11.7     -1.5      .1    11.7   
 ____________________________________________________________________________________________________________________________________ 
 See footnotes at end of table.   

 Table 2.  Producer price indexes and percent changes for selected commodity groupings by stage of processing - Continued             
 (1982=100 unless otherwise indicated)                                                                                                
 ____________________________________________________________________________________________________________________________________ 
            |                                                       |                       |Unadjusted     |                         
            |                                                       |                       | percent       |Seasonally adjusted      
            |                                                       |   Unadjusted index    |change to      |percent change from:     
  Commodity |                                                       |                       |Oct. 2000 from:|                         
    code    |                      Grouping                         |_______________________|_______________|________________________ 
            |                                                       |       |       |       |       |       |       |       |         
            |                                                       |June   |Sept.  |Oct.   | Oct.  | Sept. |July to|Aug. to|Sept.to  
            |                                                       |2000 1/|2000 1/|2000 1/| 1999  | 2000  |  Aug. |  Sept.|  Oct.   
 ___________|_______________________________________________________|_______|_______|_______|_______|_______|_______|_______|________ 
            |                                                       |                                                                 
            | INTERMEDIATE MATERIALS LESS FOODS AND FEEDS           |                                                                 
            |   -Continued..........................................|                                                                 
 05-42      |   Commercial electric power...........................| 136.0   139.4   134.0     3.9   -3.9      0.8    -0.3     1.2   
 05-43      |   Industrial electric power...........................| 133.6   137.6   133.8     3.3   -2.8      1.1     -.2      .7   
 05-52      |   Commercial natural gas (Dec. 1990=100)..............| 127.5   142.2   153.0    39.2    7.6      -.9     4.7     5.5   
 05-53      |   Industrial natural gas (Dec. 1990=100)..............| 128.7   145.7   161.5    52.8   10.8       .9     3.1     7.9   
 05-54      |   Natural gas to electric utilities (Dec. 1990=100)...| 115.0   122.8   134.9    63.3    9.9     -6.0     2.5     8.4   
 05-72-03   |   Jet fuels...........................................|  78.8   102.8   103.8    63.2    1.0      2.7    16.6    -2.2   
 05-73-03   |   No. 2 Diesel fuel...................................|  85.7   108.9   109.2    61.8     .3      1.5    14.8    -2.6   
 05-74      |   Residual fuel 2/....................................|  86.4    89.3    98.9    51.7   10.8     -2.8      .3    10.8   
 06-1       |   Industrial chemicals 2/.............................| 129.8   130.6   130.4     7.1    -.2     -1.6     -.4     -.2   
 06-21      |   Prepared paint......................................| 160.9   161.6   161.8     2.7     .1       .1      .3      .3   
 06-22      |   Paint materials 2/..................................| 151.5   149.1   147.1     1.2   -1.3     -2.4      .8    -1.3   
 06-31      |   Medicinal and botanical chemicals 2/................| 146.2   145.6   145.8      .9     .1       .6     -.4      .1   
 06-4       |   Fats and oils, inedible 2/..........................|  72.5    63.4    65.3   -35.3    3.0     -4.7      .2     3.0   
 06-51      |   Mixed fertilizers...................................| 112.8   112.9   112.7     -.3    -.2      -.2     1.0      .3   
 06-52-01   |   Nitrogenates........................................| 112.1   125.7   130.8    35.3    4.1      1.6     1.6     2.8   
 06-52-02   |   Phosphates 2/.......................................|  91.5    94.8    96.3   -11.7    1.6       .4    -3.8     1.6   
 06-53      |   Other agricultural chemicals 2/.....................| 146.5   146.7   146.6     -.2    -.1      -.2      .3     -.1   
 06-6       |   Plastic resins and materials 2/.....................| 147.8   142.1   142.1     4.8    0       -1.3    -2.8     0     
 07-11-02   |   Synthetic rubber 2/.................................| 117.6   123.0   121.3     5.9   -1.4      2.3     1.7    -1.4   
 07-21      |   Plastic construction products ......................| 139.2   136.1   135.0     3.1    -.8       .7    -1.2     -.7   
 07-22      |   Unsupported plastic film, sheet, & other shapes 2/..| 131.9   132.5   131.5     1.7    -.8      -.2      .4     -.8   
 07-26      |   Plastic parts and components for manufacturing 2/...| 117.5   117.6   117.7      .3     .1       .8     -.1      .1   
 08-11      |   Softwood lumber 2/..................................| 179.5   167.9   167.4   -11.3    -.3     -1.7    -1.2     -.3   
 08-12      |   Hardwood lumber ....................................| 186.5   186.4   187.4     5.0     .5      -.1      .2      .6   
 08-2       |   Millwork 2/.........................................| 176.7   176.4   176.3      .2    -.1      -.2     0       -.1   
 08-3       |   Plywood 2/..........................................| 155.3   156.4   158.0     -.4    1.0     -1.1     2.4     1.0   
 09-11      |   Woodpulp 2/.........................................| 145.6   149.3   151.1    20.1    1.2       .5      .7     1.2   
 09-13      |   Paper 2/............................................| 150.7   151.2   151.9     5.3     .5       .1     0        .5   
 09-14      |   Paperboard 2/.......................................| 180.3   180.1   179.5    10.7    -.3       .1     -.3     -.3   
 09-15-03   |   Paper boxes and containers 2/.......................| 175.3   175.5   175.8     7.2     .2      -.3      .3      .2   
 09-2       |   Building paper and board 2/.........................| 142.0   132.5   131.5    -7.8    -.8     -3.0     -.9     -.8   
 09-37      |   Commercial printing (June 1982=100) 2/..............| 155.4   156.3   156.7     2.8     .3       .1      .1      .3   
 10-15      |   Foundry and forge shop products.....................| 136.7   136.5   136.9     1.3     .3       .1     -.1      .3   
 10-17      |   Steel mill products 2/..............................| 110.0   108.3   108.3     3.1    0        -.7     -.4     0     
 10-22      |   Primary nonferrous metals 2/........................| 110.5   119.5   116.4     6.7   -2.6      1.3     3.2    -2.6   
 10-25-01   |   Aluminum mill shapes 2/.............................| 147.4   150.5   150.7     5.6     .1       .7      .9      .1   
 10-25-02   |   Copper and brass mill shapes 2/.....................| 159.2   166.9   168.5     7.3    1.0      1.2     2.5     1.0   
 10-26      |   Nonferrous wire and cable 2/........................| 143.4   145.6   145.8     4.7     .1      1.7     1.7      .1   
 10-3       |   Metal containers 2/.................................| 107.2   107.3   107.3      .8    0         .1     0       0     
 10-4       |   Hardware............................................| 151.3   152.3   151.8     1.3    -.3       .1      .6     -.3   
 10-5       |   Plumbing fixtures and brass fittings................| 180.7   181.3   180.7     2.1    -.3       .4     -.2     -.2   
 10-6       |   Heating equipment...................................| 155.9   155.8   156.0     1.0     .1      0        .1     0     
 10-7       |   Fabricated structural metal products................| 144.8   144.8   144.9      .8     .1       .1      .2      .1   
 10-88      |   Fabricated ferrous wire products (June 1982=100) 2/.| 129.8   130.0   130.6     -.2     .5       .3      .2      .5   
 10-89      |   Other misc. metal products 2/.......................| 126.0   126.0   125.9      .2    -.1      -.1     0       -.1   
 11-45      |   Mechanical power transmission equipment.............| 163.8   164.0   164.0     1.6    0         .2      .1     0     
 11-48      |   Air conditioning and refrigeration equipment........| 136.0   135.3   135.0      .2    -.2      -.1     -.1     -.2   
 11-49-02   |   Metal valves, ex.fluid power (Dec. 1982=100) 2/.....| 162.3   162.3   163.0     1.7     .4       .2     0        .4   
 11-49-05   |   Ball and roller bearings............................| 167.8   169.3   169.8     1.7     .3       .4     -.1      .4   
 11-71      |   Wiring devices......................................| 153.1   152.9   152.4     -.5    -.3      -.1     -.1     -.3   
 11-73      |   Motors, generators, motor generator sets............| 145.8   146.4   146.3      .5    -.1       .1      .3     -.1   
 11-75      |   Switchgear, switchboard, etc., equipment............| 152.6   152.6   153.1      .9     .3       .1      .7      .2   
 11-78      |   Electronic components and accessories 2/............|  97.3    98.1    97.3    -1.0    -.8      -.5      .5     -.8   
 11-94      |   Internal combustion engines.........................| 143.5   143.9   143.9      .6    0         .1      .1      .1   
 11-95      |   Machine shop products 2/............................| 138.0   138.0   137.8      .8    -.1      -.1     0       -.1   
 13-11      |   Flat glass 2/.......................................| 109.7   112.1   111.4     3.8    -.6      -.4      .8     -.6   
 13-22      |   Cement..............................................| 150.8   149.9   150.0     -.6     .1      0       0        .4   
 13-3       |   Concrete products...................................| 148.1   149.7   149.2     3.3    -.3       .3     1.1     -.2   
 13-6       |   Asphalt felts and coatings 2/.......................| 105.5   104.3   105.6     5.9    1.2       .1    -2.2     1.2   
 13-7       |   Gypsum products 2/..................................| 209.8   188.3   176.6   -19.0   -6.2     -4.7    -3.5    -6.2   
 13-8       |   Glass containers 2/.................................| 127.5   127.5   127.5     1.4    0         .2     0       0     
 14-12      |   Motor vehicle parts 2/..............................| 113.6   113.1   113.0     -.8    -.1      -.3      .1     -.1   
 14-23      |   Aircraft engines & engine parts (Dec. 1985=100).....| 140.7   140.7   140.8     1.7     .1      -.1      .5     -.1   
 14-25      |   Aircraft parts & aux.equip.,nec (June 1985=100) 2/..| 146.3   145.1   145.2     1.3     .1      0        .1      .1   
 15-42      |   Photographic supplies 2/............................| 124.7   126.7   125.8    -1.8    -.7      0       1.7     -.7   
 15-6       |   Medical/surgical/personal aid devices...............| 145.7   146.3   146.6     1.1     .2       .1      .1     -.1   
            |                                                       |                                                                 
            | CRUDE MATERIALS FOR FURTHER PROCESSING................| 125.6   124.8   128.3    23.4    2.8     -1.5     5.3     3.4   
            |                                                       |                                                                 
            |  CRUDE FOODSTUFFS AND FEEDSTUFFS......................| 101.9    97.6    99.5      .7    1.9     -4.5     3.9     3.5   
            |                                                       |                                                                 
 01-21      |   Wheat 2/............................................|  81.2    77.7    85.2    10.1    9.7     -8.3     6.3     9.7   
 01-22-02-05|   Corn 2/.............................................|  76.1    65.5    71.9     4.7    9.8     -5.5     6.2     9.8   
 01-31      |   Slaughter cattle 2/.................................| 105.3    97.3   100.2    -2.9    3.0     -2.8    -2.0     3.0   
 01-32      |   Slaughter hogs......................................|  83.3    71.1    70.9    27.3    -.3    -17.1    12.7     5.4   
 01-41-02   |   Slaughter broilers/fryers...........................| 126.9   135.8   131.0     9.3   -3.5     -8.7    16.9     8.3   
 01-42      |   Slaughter turkeys...................................| 121.2   133.3   137.3    -1.1    3.0      1.1     2.3    -2.4   
 01-6       |   Fluid milk..........................................|  91.5    96.1    93.8   -14.6   -2.4     -7.7      .3    -5.4   
 01-83-01-31|   Soybeans 2/.........................................|  87.0    82.8    79.4     -.8   -4.1     -3.7     6.4    -4.1   
 02-52-01-01|   Cane sugar,raw 2/...................................| 104.6    99.8   111.3     3.5   11.5     -2.4     5.4    11.5   
            |                                                       |                                                                 
            |  CRUDE NONFOOD MATERIALS..............................| 137.3   139.1   143.5    38.2    3.2       .1     6.0     3.3   
            |                                                       |                                                                 
 01-51-01-01|   Raw cotton..........................................|  91.9   100.7   103.0    26.1    2.3     12.4     2.7     3.5   
 01-92-01-01|   Leaf tobacco 2/.....................................|   (3)   107.0   106.4     0      -.6      (3)    10.3     -.6   
 04-11      |   Cattle hides 2/.....................................| 162.6   177.0   191.4    22.1    8.1      2.1      .7     8.1   
 05-1       |   Coal 2/.............................................|  88.8    86.6    86.4    -2.7    -.2     -3.5      .9     -.2   
 05-31      |   Natural gas 2/......................................| 170.2   172.1   193.3    85.7   12.3       .6     9.0    12.3   
 05-61      |   Crude petroleum 2/..................................|  89.8    96.2    91.4    50.1   -5.0      2.2     9.1    -5.0   
 08-5       |   Logs, timber, etc...................................| 198.1   186.1   186.8    -8.7     .4     -3.3     -.7      .3   
 09-12      |   Wastepaper 2/.......................................| 355.7   239.7   227.7     2.0   -5.0    -15.7    -8.7    -5.0   
 10-11      |   Iron ore 2/.........................................|  94.9    92.8    94.9      .1    2.3      0      -2.2     2.3   
 10-12      |   Iron and steel scrap 2/.............................| 140.4   137.3   128.3   -11.5   -6.6       .1      .7    -6.6   
 10-21      |   Nonferrous metal ores (Dec. 1983=100) 2/............|  67.8    68.1    69.2    -1.6    1.6       .3     2.1     1.6   
 10-23-01   |   Copper base scrap 2/................................| 120.4   128.9   129.3    13.3     .3      5.6     -.2      .3   
 10-23-02   |   Aluminum base scrap.................................| 170.4   177.9   172.4      .5   -3.1       .1     1.2    -1.3   
 13-21      |   Construction sand, gravel, and crushed stone........| 163.7   164.6   164.5     3.9    -.1       .3      .5      .1   
 ____________________________________________________________________________________________________________________________________ 
                                                                                                                                      
 1/  The indexes for June 2000 have been recalculated to incorporate               2/  Not seasonally adjusted.                    
     late reports and corrections by respondents.  All indexes are                 3/  Not available.                              
     subject to revision 4 months after original publication.

Table 3.  Producer price indexes for selected commodity groupings                               
(1982=100 unless otherwise indicated)                                                          
 _______________________________________________________________________________________________
          |                                                |                                   |
          |                                                |         Unadjusted index 1/       |
 Commodity|                                                |___________________________________|
   code   |                    Grouping                    | June 2000 |Sept. 2000 | Oct. 2000 |
 _________|________________________________________________|___________|___________|___________|
          |                                                |           |           |           |
          | Finished Goods (1967=100)......................|   389.0   |   390.5   |   392.8   |
          | All commodities................................|   133.8   |   134.5   |   135.1   |
          |                                                |           |           |           |
          |                                                |           |           |           |
          |            MAJOR COMMODITY GROUPS              |           |           |           |
          |                                                |           |           |           |
          | Farm products and processed foods and feeds....|   122.9   |   121.2   |   122.2   |
 01       |   Farm products................................|   100.1   |    97.9   |   100.2   |
 02       |   Processed foods and feeds....................|   134.2   |   132.7   |   133.0   |
          |                                                |           |           |           |
          | Industrial commodities.........................|   135.9   |   137.0   |   137.5   |
 03       |   Textile products and apparel.................|   121.4   |   121.3   |   121.5   |
 04       |   Hides, skins, leather, and related products..|   149.6   |   153.1   |   155.1   |
 05       |   Fuels and related products and power 2/......|   107.4   |   111.9   |   112.6   |
 06       |   Chemicals and allied products 2/.............|   151.7   |   151.8   |   152.3   |
 07       |   Rubber and plastic products..................|   125.2   |   126.0   |   125.6   |
 08       |   Lumber and wood products.....................|   178.6   |   174.0   |   174.3   |
 09       |   Pulp, paper, and allied products.............|   185.5   |   184.1   |   184.6   |
 10       |   Metals and metal products....................|   127.9   |   128.5   |   128.2   |
 11       |   Machinery and equipment......................|   124.0   |   124.2   |   124.1   |
 12       |   Furniture and household durables.............|   132.9   |   132.4   |   132.8   |
 13       |   Nonmetallic mineral products.................|   143.1   |   143.0   |   142.5   |
 14       |   Transportation equipment.....................|   143.1   |   142.5   |   145.1   |
 15       |   Miscellaneous products.......................|   169.9   |   172.2   |   172.4   |
          |                                                |           |           |           |
          | Industrial commodities less fuels and related  |           |           |           |
          |   products and power...........................|   142.6   |   142.5   |   143.0   |
          |                                                |           |           |           |
          |                                                |           |           |           |
          |             OTHER COMMODITY GROUPINGS          |           |           |           |
          |                                                |           |           |           |
 01-1     | Fruits and melons, fresh and dry vegetables,   |           |           |           |
          |   and tree nuts................................|   104.8   |   114.6   |   120.5   |
 01-2     | Grains.........................................|    78.6   |    70.2   |    76.3   |
 01-3     | Slaughter livestock............................|   100.4   |    91.1   |    93.1   |
 01-4     | Slaughter poultry..............................|   124.2   |   133.6   |   130.8   |
 01-5     | Plant and animal fibers........................|    90.9   |    99.3   |   101.4   |
 01-7     | Chicken eggs...................................|    94.5   |    92.4   |   109.1   |
 01-8     | Hay, hayseeds, and oilseeds....................|   108.1   |   104.9   |   103.4   |
 01-83    | Oilseeds.......................................|    97.1   |    92.8   |    90.1   |
 01-9     | Other farm products............................|  'N.A.'   |   159.6   |   158.7   |
 02-1     | Cereal and bakery products.....................|   158.4   |   158.6   |   159.6   |
 02-2     | Meats, poultry, and fish.......................|   124.0   |   119.4   |   120.0   |
 02-22    | Processed poultry..............................|   111.8   |   117.9   |   117.2   |
 02-5     | Sugar and confectionery........................|   133.0   |   131.3   |   132.4   |
 02-6     | Beverages and beverage materials...............|   143.5   |   143.1   |   143.6   |
 02-63    | Packaged beverage materials....................|   131.4   |   129.3   |   129.3   |
 02-7     | Fats and oils..................................|   111.1   |   109.9   |   108.3   |
 03-81    | Apparel........................................|   127.3   |   126.8   |   127.1   |
 04-4     | Other leather and related products.............|   145.7   |   146.0   |   146.1   |
 05-3     | Gas fuels 2/...................................|   153.1   |   159.2   |   178.6   |
 05-4     | Electric power.................................|   134.0   |   137.1   |   133.3   |
 05-7     | Refined petroleum products.....................|    97.4   |   102.1   |    99.1   |
 06-3     | Drugs and pharmaceuticals......................|   256.7   |   258.5   |   260.8   |
 06-5     | Agricultural chemicals and products............|   121.7   |   125.8   |   127.4   |
 06-7     | Other chemicals and allied products............|   136.8   |   137.4   |   137.8   |
 07-1     | Rubber and rubber products.....................|   115.2   |   116.0   |   115.7   |
 07-11    | Rubber, except natural rubber..................|   117.0   |   122.4   |   120.7   |
 07-13    | Miscellaneous rubber products..................|   138.9   |   139.3   |   139.2   |
 07-2     | Plastic products...............................|   133.0   |   133.9   |   133.4   |
 08-1     | Lumber.........................................|   179.6   |   171.6   |   171.5   |
 09-1     | Pulp, paper, and products, excluding building  |           |           |           |
          |   paper and board..............................|   164.7   |   162.2   |   162.3   |
 09-15    | Converted paper and paperboard products........|   164.2   |   164.4   |   164.7   |
 10-1     | Iron and steel.................................|   117.6   |   116.0   |   115.3   |
 10-2     | Nonferrous metals..............................|   126.5   |   130.1   |   129.6   |
 10-25    | Nonferrous mill shapes.........................|   142.0   |   145.3   |   145.9   |
 11-3     | Metalworking machinery and equipment...........|   149.7   |   149.8   |   149.9   |
 11-4     | General purpose machinery and equipment........|   150.7   |   151.0   |   151.1   |
 11-6     | Special industry machinery.....................|   163.2   |   163.4   |   163.3   |
 11-7     | Electrical machinery and equipment.............|   118.8   |   119.2   |   118.9   |
 11-9     | Miscellaneous machinery and equipment..........|   134.0   |   134.4   |   134.6   |
 12-6     | Other household durable goods..................|   155.1   |   155.7   |   156.2   |
 13-2     | Concrete ingredients...........................|   156.2   |   156.4   |   156.4   |
 14-1     | Motor vehicles and equipment...................|   131.4   |   130.1   |   133.7   |
 15-1     | Toys, sporting goods, small arms, etc..........|   132.4   |   132.5   |   132.6   |
 15-4     | Photographic equipment and supplies............|   108.8   |   109.6   |   109.0   |
 15-9     | Other miscellaneous products...................|   136.8   |   136.5   |   136.9   |
 __________________________________________________________|___________|___________|___________|
                                                                                                
 1/  Data for June 2000 have been revised to reflect the availability of late reports and 
     corrections by respondents.  All data are subject to revision 4 months after original 
     publication.                                                         
 2/  Prices of some items in this grouping are lagged 1 month.
Table 4.  Producer price indexes for the net output of major industry groups, not seasonally adjusted             
__________________________________________________________________________________________________________________
                  |                                              |     |         Index         |  Percent change  
  Industry        |                Industry 1/                   |Index|_______________________|to_Oct._2000_from:
    code          |                                              |base |       |       |       |        |         
                  |                                              |     |June   |Sep.   |Oct.   |  Oct.  |  Sep.   
                  |                                              |     |2000 2/|2000 2/|2000 2/|  1999  |  2000   
__________________|______________________________________________|_____|_______|_______|_______|________|_________
                  |                                              |     |                                            
                  |Total mining industries...................... |12/84| 118.4   122.6   128.7     46.8      5.0    
       10         | Metal mining................................ |12/84|  73.7    73.6    74.7     -2.1      1.5    
       12         | Coal mining................................. |12/85|  85.1    83.9    83.9     -2.4    0        
       13         | Oil and gas extraction...................... |12/85| 133.1   139.3   147.3     61.5      5.7    
       14         | Mining and quarrying of non-metallic         |     |                                            
                  |  minerals, except fuels..................... |12/84| 137.2   138.0   138.1      2.8       .1    
                  |                                              |     |                                            
                  |Total manufacturing industries............... |12/84| 134.2   134.6   134.8      3.5       .1    
       20         | Food and kindred products................... |12/84| 129.4   128.4   128.6       .9       .2    
       21         | Tobacco manufactures........................ |12/84| 342.2   350.5   351.6      2.1       .3    
       22         | Textile mill products....................... |12/84| 116.6   116.7   116.6       .4      -.1    
       23         | Apparel and other finished products made     |     |                                            
                  |  from fabrics and similar materials......... |12/84| 125.6   125.6   125.9       .2       .2    
       24         | Lumber and wood products, except furniture.. |12/84| 158.7   155.4   155.3     -2.9      -.1    
       25         | Furniture and fixtures...................... |12/84| 143.5   143.5   143.6      1.1       .1    
       26         | Paper and allied products................... |12/84| 147.3   147.6   147.6      5.5    0        
       27         | Printing, publishing, and allied industries. |12/84| 183.1   183.2   184.0      3.0       .4    
       28         | Chemicals and allied products............... |12/84| 156.5   158.4   159.3      4.3       .6    
       29         | Petroleum refining and related products..... |12/84| 119.9   124.8   121.3     39.4     -2.8    
       30         | Rubber and miscellaneous plastic products... |12/84| 124.4   124.9   124.6      1.4      -.2    
       31         | Leather and leather products................ |12/84| 137.2   138.3   138.2       .9      -.1    
       32         | Stone, clay, glass, and concrete products... |12/84| 135.1   134.9   134.4       .6      -.4    
       33         | Primary metal industries.................... |12/84| 120.2   120.5   120.4      2.8      -.1    
       34         | Fabricated metal products, except machinery  |     |                                            
                  |  and transportation equipment............... |12/84| 130.3   130.5   130.5       .9    0        
       35         | Machinery, except electrical................ |12/84| 117.5   117.6   117.6       .4    0        
       36         | Electrical and electronic machinery,         |     |                                            
                  |  equipment, and supplies.................... |12/84| 108.5   108.0   108.1      -.9       .1    
       37         | Transportation equipment.................... |12/84| 136.0   135.5   138.4      1.2      2.1    
       38         | Measuring and controlling instruments;       |     |                                            
                  |  photographic, medical, optical goods;       |     |                                            
                  |  watches, clocks............................ |12/84| 126.2   126.5   126.4      1.0      -.1    
       39         | Miscellaneous manufacturing industries...... |12/85| 130.7   130.7   131.0       .5       .2    
                  |                                              |     |                                            
                  |Services industries                           |     |                                            
       40         | Railroad transportation..................... |12/96| 102.6   102.9   103.3      1.7       .4    
       42         | Motor freight transportation and warehousing |06/93| 119.0   120.6   121.4      5.1       .7    
       43         | United States Postal Service................ |06/89| 135.2   135.2   135.2    0        0        
       44         | Water transportation........................ |12/92| 124.1   126.6   126.5      8.4      -.1    
       45         | Transportation by air....................... |12/92| 147.2   151.3   151.2     13.6      -.1    
       46         | Pipe lines, except natural gas.............. |12/86| 102.1   102.4   102.7      4.5       .3    
       54         | Food stores................................. |12/99| 101.6   104.7   103.7     (3)      -1.0    
       80         | Health services............................. |12/94| 112.0   112.8   113.3      2.5       .4    
       81         | Legal services.............................. |12/96| 112.0   112.6   112.7      3.1       .1    
____________________________________________________________________________________________________________________
1/ Indexes in this table are derived from the net-output-weighted industry price indexes.  Because of differences
   in coverage and aggregation methodology, they will generally not match the movements of similarly-titled
   indexes which are derived from traditional commodity groupings.                              
2/ The indexes for June 2000 have been recalculated to incorporate late reports and corrections by respondents.     
   All indexes are subject to revision 4 months after original publication.                                         
3/ Not available. 
Table 5.  Producer price indexes by stage of processing, seasonally adjusted
(1982=100)
_____________________________________________________________________________________________________________
                                                       |
                                                       |                      Index 1/   
                                                       |_____________________________________________________
               Grouping                                |        |        |        |        |        |        
                                                       |  May   |  June  |  July  |  Aug.  |  Sep.  |  Oct.  
                                                       |  2000  |  2000  |  2000  |  2000  |  2000  |  2000  
_______________________________________________________|________|________|________|________|________|________
                                                       |
      Finished goods...................................| 137.1    138.3    138.1    137.8    139.0    139.5
        Finished consumer goods........................| 137.1    138.7    138.3    137.9    139.4    140.1
          Finished consumer foods......................| 137.8    137.5    137.2    136.2    136.7    137.8
            Crude......................................| 126.5    119.1    116.3    117.8    123.0    133.0
            Processed..................................| 138.7    139.0    138.9    137.6    137.8    138.2
          Finished consumer goods, excluding foods.....| 136.6    139.0    138.5    138.5    140.3    140.9
            Nondurable goods less foods................| 136.0    139.5    138.7    138.8    141.1    142.1
            Durable goods..............................| 134.1    133.9    134.1    133.9    134.5    133.9
        Capital equipment..............................| 138.7    138.7    139.0    139.0    139.3    139.3
          Manufacturing industries.....................| 139.3    139.5    139.5    139.6    139.7    139.8
          Nonmanufacturing industries..................| 138.4    138.4    138.7    138.7    139.1    139.0
                                                       |
      Intermediate materials, supplies, and components.| 128.3    129.4    129.7    129.4    130.3    130.6
        Materials and components for manufacturing.....| 128.4    128.6    129.0    128.6    128.5    128.5
          Materials for food manufacturing.............| 120.1    120.4    120.2    118.3    118.6    119.1
          Materials for nondurable manufacturing.......| 133.2    133.6    135.0    134.3    133.6    133.8
          Materials for durable manufacturing..........| 129.6    129.3    129.3    129.1    129.5    129.2
          Components for manufacturing.................| 126.0    126.2    126.2    126.2    126.4    126.3
        Materials and components for construction......| 150.8    151.1    150.4    150.2    150.3    150.2
        Processed fuels and lubricants.................|  96.8    101.7    102.0    102.3    106.5    107.7
          Manufacturing industries ....................|  96.5    100.4    101.5    102.0    103.9    106.0
          Nonmanufacturing industries..................|  96.6    102.0    101.9    102.1    107.6    108.4
        Containers.....................................| 152.7    153.3    153.3    153.2    153.5    153.3
        Supplies.......................................| 136.7    137.1    137.3    136.9    137.4    137.6
          Manufacturing industries.....................| 142.9    143.4    143.9    144.0    144.2    144.3
          Nonmanufacturing industries..................| 133.9    134.3    134.5    133.9    134.5    134.7
            Feeds......................................|  97.2     97.1     95.1     90.2     93.6     94.5
            Other supplies.............................| 138.4    138.9    139.3    139.2    139.4    139.6
                                                       |
      Crude materials for further processing...........| 115.1    124.8    119.9    118.1    124.4    128.6
        Foodstuffs and feedstuffs......................| 103.1    100.3     97.4     93.0     96.6    100.0
        Nonfood materials..............................| 119.2    137.2    131.0    131.1    139.0    143.6
          Nonfood materials except fuel 2/.............| 115.9    121.5    118.1    118.6    124.0    120.5
            Manufacturing 2/...........................| 106.6    111.9    108.8    109.4    114.5    111.2
            Construction...............................| 197.9    195.6    191.5    185.7    184.1    184.6
          Crude fuel 3/................................| 114.3    147.8    138.3    137.8    148.5    163.7
            Manufacturing industries...................| 112.9    147.7    137.8    138.5    149.0    164.7
            Nonmanufacturing industries................| 116.5    150.5    140.8    140.2    151.0    166.5
                                                       |
                     Special groupings                 |
                                                       |
      Finished goods, excluding foods..................| 136.8    138.5    138.2    138.2    139.6    140.0
      Intermediate materials less foods and feeds......| 129.2    130.4    130.7    130.5    131.4    131.6
      Intermediate foods and feeds.....................| 113.1    113.3    112.5    109.7    110.9    111.6
      Crude materials less agricultural products 2/....| 120.3    139.2    132.9    132.7    140.7    145.4
                                                       |
      Finished energy goods............................|  90.0     95.8     94.5     94.3     97.8     99.2
      Finished goods less energy.......................| 144.9    144.9    144.9    144.7    145.1    145.4
      Finished consumer goods less energy..............| 147.6    147.4    147.4    147.0    147.6    148.0
                                                       |
      Finished goods less foods and energy.............| 147.8    147.8    147.9    148.0    148.5    148.4
      Finished consumer goods less foods and energy....| 153.8    153.8    153.9    154.0    154.6    154.6
      Consumer nondurable goods less foods and energy..| 169.3    169.4    169.4    169.9    170.4    170.9
                                                       |
      Intermediate energy goods........................|  96.5    101.4    101.7    102.0    106.2    107.4
      Intermediate materials less energy...............| 135.2    135.5    135.7    135.3    135.4    135.4
      Intermediate materials less foods and energy.....| 136.7    136.9    137.2    137.0    137.0    137.0
                                                       |
      Crude energy materials 2/........................| 106.5    130.6    123.4    124.2    134.3    140.5
      Crude materials less energy......................| 114.8    112.0    109.3    105.6    108.3    110.6
      Crude nonfood materials less energy 3/...........| 148.7    146.3    143.8    141.9    142.3    141.5
_____________________________________________________________________________________________________________

  1/  All seasonally adjusted indexes are subject to change up to 5 years after original publication due to
      the recalculation of seasonal factors each January.  The indexes for June 2000 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

     The term Producer Price Index (PPI) refers to a family of 
indexes that measure the average change over time in the selling 
prices received by domestic producers of goods and services.  
PPIs measure price change from the perspective of the seller. 
This contrasts with other measures, such as the Consumer Price 
Index (CPI); CPIs measure price change from the purchaser's 
perspective.  Sellers' and purchasers' prices may differ due to 
government subsidies, sales and excise taxes, and distribution 
costs.
     More than 10,000 PPIs for individual products and groups of 
products are released each month.  PPIs are available for the 
products of virtually every industry in the mining and 
manufacturing sectors of the U.S. economy.  New PPIs are 
gradually being introduced for the products of industries in 
the transportation, utilities, trade, finance, and services 
sectors of the economy.
     More than 100,000 price quotations per month are organized into 
three sets of producer price indexes: (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, 2, and 5) organizes products by class of 
buyer and degree of fabrication.  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).  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.  The Bureau publishes price 
indexes instead of unit dollar prices.  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.
     The BLS periodically updates the PPI sample of survey 
respondents to better reflect current conditions when the 
structure, membership, technology, or product mix of an 
industry shifts significantly and to spread reporting 
burden among smaller firms.  Results of these resampling 
efforts are incorporated into the PPI every January and July.  
     As part of an ongoing effort to expand coverage to 
sectors of the economy other than mining and manufacturing, 
an increasing number of service sector industries have been 
introduced into the PPI.  The following list of recently 
introduced service industries includes the month in which 
an article describing the industry's content appeared in 
the PPI Detailed Report:

		                                 PPI Detailed	
        Industry                     SIC     Report Issue	
			
Wireless Telecommunications          4812     July 1999	
Telephone Communications, Except 
   Radio Telephone                   4813     July 1995
Grocery Stores                       5411     July 2000	
Meat and Fish (Seafood) Markets,     5421     July 2000	
Fruit and Vegetable Markets          5431     July 2000	
Candy, Nut, and Confectionery Stores 5441     July 2000	
Retail Bakeries                      5461     July 2000	
Miscellaneous Food Stores            5499     July 2000	
New Car Dealers                      5511     July 2000	
Life Insurance Carriers              6311     January 1999	
Property and Casualty Insurance      6331     July 1998	
Operators and Lessors of 			
   Nonresidential Buildings          6512     January 1996	
Real Estate Agents and Managers      6531     January 1996	
Prepackaged Software                 7372     January 1998	
Home Health Care Services            8082     January 1997	
Legal Services                       8111     January 1997	
Engineering, Design, Analysis,			
   and Consulting Services           8711     January 1997	
Architectural, Design, Analysis, 			
   and Consulting Services           8712     January 1997	
Premiums for Property and Casualty 			
   Insurance                         9331     July 1998	



     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 1992 values of shipments as reported in 
the Census of Manufactures and other sources.  From January 
1992 through December 1995, PPI weights were derived from 
1987 shipment values.  Industry indexes shown in table 4 are 
also now calculated with 1992 net output weights.  This 
periodic update of the value weights used to calculate the 
PPI is done to more accurately reflect changes in production 
and marketing patterns in the economy.
     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.
     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.  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 14, "Producer 
Prices," in BLS Handbook of Methods (April 1997), Bulletin 2490. 
Reprints are available from the Bureau of Labor Statistics on 
request.

Calculating Index Changes

     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 today." 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.
     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 changes are affected by the level 
of the index in relation to its base period, while percent changes 
are not.  The example below shows the computation of index point and 
percent changes.

     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
                  
     Because price data are used for different purposes by different 
groups, the Bureau of Labor Statistics publishes seasonally adjusted 
and unadjusted changes each month.

Seasonally Adjusted and Unadjusted Data

     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 that 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 (April 1997), 
Bulletin 2490 and (2) "Summary of  Changes to the PPI's  Seasonal 
Adjustment Methodology" in the January 1995 issue of Producer 
Price Indexes.