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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   JANUARY 13, 2000
                                     
                  Producer Price Indexes -- December 1999

     The Producer Price Index for Finished Goods advanced 0.3 percent in
December, seasonally adjusted, the Bureau of Labor Statistics of the U.S.
Department of Labor reported today.  This rise followed a 0.2-percent
increase in November and a 0.1-percent decline in October.  Prices received
by producers of intermediate goods gained 0.2 percent, following a 0.3-
percent advance in the prior month.  The crude goods index decreased 3.9
percent, after posting a 4.0-percent increase in November.  (See table A.)

Table A.  Monthly and annual percent changes in selected stage-of-
processing price indexes, seasonally adjusted

                     Finish                                  
                         ed
                      goods
                                                             
                                     Change in            
                            Except   Finished   Inter-    
                                       goods
                             foods    From 12   mediate Crude
                              and     months
Month  Total  Foods  Energy energy      ago      goods  goods
                                     (unadj.)
  1998                                                  
Dec.      0.5    0.0   -1.8     1.0         0.0   -0.7   -3.6
                                                        
  1999                                                  
Jan.       .3    1.5     .8     -.2          .8      0     .6
Feb.      -.5   -1.2   -1.1      .1          .5    -.3   -2.3
Mar.       .3     .3    1.7     -.1          .8     .3     .3
Apr.       .5    -.7    5.5      .1         1.2     .7    2.5
May        .2     .4     .3      .1         1.4     .3    6.1
June        0     .3    -.4     -.1         1.5     .3     .3
July       .2    -.6    3.0      .1         1.5     .7     .1
Aug.       .5    r.2   r3.7     -.1         2.3     .6   r5.0
Sept.    r1.0    1.0   r2.3     r.7         3.2    r.4   r4.2
Oct.      -.1    -.7   -1.0      .3         2.7     .3   -1.6
Nov.       .2     .1    1.4       0         3.1     .3    4.0
Dec.       .3     .4    1.2      .1         3.0     .2   -3.9
r=revised.  Some of the figures shown above and elsewhere in this release
may differ from those previously reported because data for August 1999
have been revised to reflect the availability of late reports and corrections
by respondents.
                                    -2-
     In December, the index for finished energy goods increased 1.2 percent
and was the largest contributor to this month's rise in finished goods
prices.  Prices for finished goods other than foods and energy edged up 0.1
percent, after showing no change a month earlier; the indexes for finished
consumer foods, consumer goods other than foods and energy, and for capital
equipment each advanced in December.

     Before seasonal adjustment, the Producer Price Index for Finished
Goods showed no change for the second consecutive month, to remain at 135.0
(1982=100).  From December 1998 to December 1999, finished goods prices
advanced 3.0 percent, after showing no change during 1998.  Leading this
acceleration, the index for finished energy goods surged 18.4 percent in
1999, following an 11.7-percent drop in the previous calendar year.  Prices
for finished consumer foods increased 0.9 percent during 1999, after edging
up 0.1 percent during the 12 months ended December 1998.  By contrast, the
index for finished goods other than foods and energy rose 0.9 percent in
1999, following a 2.5-percent gain in 1998.  At the earlier stages of
processing, the intermediate goods index advanced 3.9 percent from December
1998 to December 1999, after registering a 3.3-percent decline during 1998.
Prices for crude materials for further processing increased 15.7 percent in
1999, following a 16.7-percent decrease in the prior calendar year.  (See
table B.)

Finished goods

     The index for finished energy goods rose 1.2 percent in December,
after posting a 1.4-percent gain in November.  An 8.5-percent increase in
December gasoline prices was the main factor behind the advance in finished
energy goods prices.  For the 12 months ended December 1999, gasoline
prices increased 76.4 percent, the largest 12-month rate of increase since
a 78.0-percent gain in May 1980.  Other noteworthy December price increases
were registered for home heating oil and finished lubricants.  On the other
hand, prices for residential electric power, residential natural gas, and
liquefied petroleum gas fell in December.

     The finished consumer foods index advanced 0.4 percent, after
registering a 0.1-percent gain in November.  Prices for fresh and dry
vegetables rose 32.3 percent, following a 0.6-percent increase a month
earlier.  The indexes for beef and veal and for fresh fruits and melons
advanced, after falling in the prior month.  Pork prices gained more than a
month ago, while the finfish and shellfish index decreased less than in the
previous month.  By contrast, prices for dairy products declined 6.3
percent in December, following a 1.3-percent decrease a month ago.  The
index for eggs for fresh use fell, after rising last month.  Prices for
processed young chickens and soft drinks increased less than a month
earlier.

Table B.  Summary of December-to-December percent changes for selected
stages of process

        Finished goods    Intermediate    Crude goods
                             goods
                                                
 Year   Total   Except   Total  Except   Total    Except
                foods            foods            foods
                 and              and              and
                energy          energy            energy
  1990     5.7      3.5     4.3     1.9      6.0     0.6
  1991     -.1      3.1    -2.6     -.8    -11.6    -7.6
  1992     1.6      2.0     1.0     1.2      3.3     5.7
  1993      .2       .4     1.0     1.6       .1    10.7
  1994     1.7      1.6     4.4     5.2      -.5    17.3
  1995     2.3      2.6     3.3     3.2      5.5    -4.2
  1996     2.8       .6      .7     -.9     14.7    -5.5
  1997    -1.2        0     -.8      .3    -11.3       0
  1998       0      2.5    -3.3    -1.6    -16.7   -16.0
  1999     3.0       .9     3.9     1.9     15.7    13.6
                                   
                                   -3-
      Prices for finished consumer goods other than foods and energy
advanced 0.1 percent, the same as in November.  Rising prices for passenger
cars, women's apparel, book publishing, and floor coverings slightly
outweighed falling prices for alcoholic beverages, sanitary papers and
health products, and prescription drugs.  From December 1998 to December
1999, the index for finished consumer goods other than foods and energy
increased 1.2 percent, after posting a 4.2-percent gain 1998.  This
deceleration is due primarily to a slowdown in the rate of increase in
cigarette and prescription-drug prices.

      The capital equipment index gained 0.1 percent in December, following
a 0.1-percent drop in November.  The index for light motor trucks showed no
change, after posting a 1.1-percent decline a month earlier.  Prices for
communication and related equipment also showed no change, after falling in
the previous month.  The x-ray and electromedical equipment index
increased, after decreasing a month ago.  Prices for civilian aircraft and
passenger cars rose more than in the prior month.  Conversely, the index
for transformers and power regulators fell 0.1 percent, following a 2.4-
percent advance in November.  Prices for agricultural machinery and
equipment and for truck trailers also fell, after rising a month ago.  For
the 12 months ended December 1999, capital equipment prices increased 0.3
percent, after posting no change during the previous calendar year.

Table C.  Monthly and annual percent changes in selected price indexes for
intermediate goods and crude goods, seasonally adjusted

              Interm                           Crude           
              ediate                           goods
              goods
                            Change in                             
                            intermedi                        
                               ate                             Change in
                     Exclud   goods                   Exclud-  crude goods
                      ing      from                     ing        from
                     foods  12 months         Energy   foods   12 months
                      and      ago                      and       ago
Month  Foods  Energy energy  (unadj.)   Foods (unadj.) energy    (unadj.)
                                                
  1998                                                         
Dec.     -0.6   -3.5   -0.2       -3.3   -4.3   -4.0   -1.7      -16.7
                                                                     
  1999                                                               
Jan.       .6     .8    -.2       -2.7    4.9   -5.0     .2      -11.4
Feb.     -1.9    -.9    -.1       -2.7   -3.0   -3.6    1.2      -11.9
Mar.     -1.4    2.2     .1       -2.1    -.7    2.9   -1.1      -10.5
Apr.     -1.5    5.1     .2       -1.4   -2.9   12.6    -.9       -9.2
May        .3     .5     .3       -1.1    2.5   13.2    2.1       -3.1
June       .4     .4     .3        -.4     .3      0     .8        -.2
July     -1.1    3.3     .4         .3   -4.3    4.3    1.8        -.2
Aug.      1.0   r2.5     .2       r1.1    3.5   r8.6    1.9       r9.3
Sept.     1.3   r1.9     .1        1.9    1.3   r7.8    2.2       16.1
Oct.       .5     .2     .4        2.4    -.1   -4.8    2.4       11.6
Nov.      -.5    1.8     .1        3.0    1.0    8.8     .3       16.0
Dec.     -1.5    1.4     .2        3.9   -1.6   -8.7    1.8       15.7
r=revised.  Some of the figures shown above and elsewhere in this release
may differ from those previously reported because data for August 1999
have been revised to reflect the availability of late reports and
corrections by respondents.
                                    -4-
Intermediate goods

     The Producer Price Index for Intermediate Materials, Supplies, and
Components increased 0.2 percent in December, seasonally adjusted, after
registering a 0.3-percent rise in November.  Rising prices for materials
for nondurable manufacturing, durable manufacturing materials, materials
and components for construction, and intermediate energy goods more than
offset falling prices for intermediate food and feeds.  Excluding foods and
energy, the index for intermediate materials rose 0.2 percent, following a
0.1-percent increase in November.  (See table C.)

     The index for nondurable manufacturing materials advanced 0.5 percent
in December, after rising 0.2 percent in November.  The index for plastic
resins and materials gained 1.3 percent, after edging up 0.1 percent in the
previous month.  Prices for basic organic chemicals also rose more than a
month ago.  The paperboard index fell less than last month, and prices for
nitrogenates and finished fabrics turned up, after falling in the prior
month.  By contrast, the index for paper edged up 0.1 percent in December,
after advancing 1.0 percent in November.  Prices for gray fabrics and for
alkalies and chlorine turned down, after rising a month ago.  The index for
phosphates fell more than last month.  From December 1998 to December 1999,
prices for nondurable manufacturing materials rose 4.1 percent, following a
5.3-percent decline in 1998.

     Prices for materials for durable manufacturing rose 0.5 percent in
December, following a 0.2-percent increase in November.  Prices for
aluminum mill shapes advanced 1.5 percent in December, after increasing 0.1
percent last month.  The index for original equipment automobile stampings
rose 0.5 percent, following no change from the previous month.  Prices for
silver, semi-finished steel mill products, and for building paper and board
turned up, after falling a month ago.  Conversely, the index for hot rolled
bars, plates, and structural shapes increased 0.1 percent in December,
following a 0.7-percent advance in November.  Prices for flat glass, copper
cathode and refined copper, and prepared paint turned down, after rising in
the prior month.  Plywood prices rose less than the prior month.  The index
for materials for durable manufacturing posted a 2.6-percent gain during
1999, following a 5.5-percent drop in the previous year.

     The index for materials and components for construction increased 0.3
percent in December, after edging up 0.1 percent in November.  The index
for fabricated structural metal products rose 0.6 percent, after a 0.1-
percent gain last month.  Softwood lumber prices also advanced at a greater
rate than in the prior month.  The indexes for nonferrous wire and cable,
switchgear and switchboard equipment, and air conditioning and
refrigeration equipment turned up, after falling in the previous month.  By
contrast, prices for plastic construction products increased less than in
November.  Millwork prices fell, after showing no change last month.  The
indexes for plywood, wiring devices, and gypsum products rose less than a
month ago.  For the 12 months ended in December 1999, prices for materials
and components for construction rose 2.1 percent, following a 0.1-percent
increase in the prior year.

     Prices for intermediate energy goods rose 1.4 percent in December,
following a 1.8-percent advance in November.  The commercial electric power
index turned down 3.2 percent, following a 0.7-percent gain a month
earlier.  Prices for industrial electric power, commercial natural gas,
industrial natural gas, and liquefied petroleum gas also turned down, after
increasing in the previous month.  By contrast,  gasoline prices advanced
8.5 percent in December, following a 0.1-percent rise in November.  Prices
for jet fuels and residual fuels increased more than a month ago.  The
intermediate energy goods index advanced 21.1 percent during 1999, after
registering a 12.1-percent decline during all of 1998.
                                    -5-
     The index for intermediate foods and feeds fell 1.5 percent in
December, following a 0.5-percent decline in November.  The index for fluid
milk products fell 12.5 percent in December, following a 0.3-percent gain a
month ago.  Flour prices also turned down, after rising in the previous
month.  The indexes crude vegetable oils and bulk liquid milk products fell
more than a month earlier.  By contrast, prices for beef and veal turned up
2.3 percent in December, after dropping 5.7 percent in November.  The pork
index rose more than in the prior month.  Prices for confectionery
materials turned up, after falling last month.  During 1999, prices for
intermediate foods and feeds fell 3.9 percent, after declining 7.3 percent
in 1998.

Crude Goods

     The Producer Price Index for Crude Materials for Further Processing
decreased 3.9 percent in December, seasonally adjusted, following a 4.0-
percent increase in November.  Prices turned down for both crude energy
materials and for crude foodstuffs and feedstuffs, after rising in the
prior month.  By contrast, prices for basic industrial materials increased
more rapidly than they had a month ago.  (See table C.)
     
     The index for crude energy materials dropped 8.7 percent, after
increasing 8.8 percent in November.  Prices for natural gas fell 22.4
percent, following an 11.7 percent advance in November.  Coal prices fell
more than in the prior month.  Price increases for crude petroleum slowed
to 8.6 percent in December from 9.2 percent in November.  The crude energy
materials index rose 38.6 percent during 1999, following a 23.8-percent
decrease in 1998.
     
     Prices for crude foodstuffs and feedstuffs fell 1.6 percent, following
a 1.0-percent rise in November.  The index for corn fell 0.9 percent, after
an 11.5-percent rise in the prior month.  Wheat and alfalfa hay prices also
turned down, following increases a month ago.  Price increases slowed from
November to December for slaughter broilers and fryers.  By contrast, the
index for slaughter cattle advanced 0.7 percent, after a 1.6-percent
decrease in the previous month.  Prices for fresh fruits and melons also
rose, following a decline in November.  The index for fresh and dry
vegetables increased more than a month earlier, and prices for raw cane
sugar fell less than a month ago.  During 1999, prices for crude foodstuffs
and feedstuffs dipped 0.2 percent, after falling 11.0 percent in 1998.
     
     Prices for crude nonfood materials less energy increased 1.8 percent
in December, after rising 0.3 percent a month ago.  Prices for cattle hides
increased 14.2 percent, after falling 10.1 percent in November.  Prices for
leaf tobacco and copper ores also turned up, following a decrease a month
earlier.  The gold ores index fell less than in November.  By contrast, the
index for pulpwood logs declined 6.1 percent, after edging down 0.2 percent
in the prior month.  The indexes raw cotton and phosphates also fell more
than in the prior month.  Prices for wastepaper, iron and steel scrap, and
for softwood logs, bolts, and timber rose more slowly in December than in
the prior month.  The basic industrial materials index rose 13.6 percent in
1999, following a 16.0-percent decline in 1998.
                                    -6-
Net output price indexes for mining, manufacturing, and other industries

Mining.  The Producer Price Index for the Net Output of Total Mining
Industries fell 6.8 percent in December, following a 6.2 percent rise in
November.  (Net output price indexes are not seasonally adjusted.)  In
December, within the oil and gas extraction industry group, prices for
crude petroleum, natural gas, and natural gas liquids moved down 9.2
percent, after showing a 9.6-percent increase in the prior month.  The
index for the coal mining industry group fell 1.6 percent, after decreasing
0.5 percent in November.  By contrast, price declines for the metal mining
group slowed to 1.2 percent in December from 5.5 percent a month earlier.
In December, the Producer Price Index for the Net Output of Total Mining
Industries stood at 87.5 (December 1984=100).  From December 1998 through
December 1999, this index increased 31.0 percent, following a 19.7-percent
decrease in the prior year.

Manufacturing.  The Producer Price Index for the Net Output of Total
Manufacturing Industries increased 0.2 percent in December, the same amount
that it rose in November.  Increases were registered for the petroleum
refining and related products, chemicals and allied products, and lumber
and wood products industry groups.  By contrast, prices declined for the
food and kindred products, transportation equipment, and nonmetallic
mineral products industry groups.  In December, the Producer price Index
for the Net Output of Total Manufacturing Industries stood at 130.6
(December 1984=100).  From December 1998 through December 1999, this index
rose 3.7 percent, following a 0.9-percent decline in 1998.

Other.  Among other services in December, prices for the prepackaged
software industry turned up 12.1 percent, following an 18.0-percent decline
in the previous month.  Increases were also registered for the operators
and lessors of nonresidential buildings, offices and clinics of doctors of
medicine, trucking (except local), and scheduled air transportation
industries.  Decreases occurred for the passenger car rental, hotels and
motels, life insurance carriers, and telephone communications (except
radiotelephone) industries.

                                   *****
            Producer Price Index data for January 2000 will be
       released on Thursday, February 17, 2000 at 8:30 a.m. (E.S.T.)

                                    -7-
  Recalculated Seasonal Adjustment Factors and Relative Importances to be
                               Available on
                             February 15, 2000

     Each year with the release of PPI data for January, seasonal
adjustment factors are recalculated to reflect price movements from the
just-completed calendar year.  This routine annual calculation may result
in revisions to seasonally adjusted indexes for the previous 5 years.  As
in previous years, the following information will be available on February
15, 2000 (2 work days prior to the release of PPI data for January 2000 on
February 17):

       -    Seasonal factors for commodity indexes for the year 2000,

       -    Recalculated seasonal factors for the last 5 years (1995-99) for the
            commodity indexes,
       
       -    Recalculated seasonal factors for the last 5 years (1995-99) for the
            stage-of-processing indexes.

     In addition to recalculated seasonal factors, relative importances, as
of December 1999, will also be available on February 15, 2000, at
ftp://ftp.bls.gov which is the BLS ftp site.  Choose the "pub" directory,
the "special.requests" directory, and the "ppi" directory.
     
     To request any of this information, call the Division of Industrial
Prices and Price Indexes, Section of Index Analysis and Public Information
at (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|                       |Dec. 1999 from:|
                                                  |          |_______________________|_______________|__________________________
                                                  |   Dec.   |       |       |       |       |       |       |         |
                                                  |           Aug.   |Nov.   |Dec.   |  Dec. | Nov.  |Sept.to|Oct.  to |Nov.  to
                                                  |   1998 1/|1999 2/|1999 2/|1999 2/|  1998 | 1999  |  Oct. |   Nov.  |  Dec.
 _________________________________________________|__________|_______|_______|_______|_______|_______|_______|_________|________
                                                  |
 Finished goods...................................|  100.000   133.7   135.0   135.0     3.0    0       -0.1      0.2     0.3
   Finished consumer goods........................|   74.783   133.2   134.5   134.4     3.9    -.1      -.3       .4      .4
     Finished consumer foods......................|   23.285   135.9   135.4   135.7      .9     .2      -.7       .1      .4
       Crude......................................|    1.701   123.8   118.6   125.6    -2.9    5.9     -3.4      1.0     6.2
       Processed..................................|   21.584   136.8   136.7   136.5     1.2    -.1      -.5      0        .1
     Finished consumer goods, excluding foods.....|   51.498   131.9   133.9   133.7     5.2    -.1      -.1       .4      .4
       Nondurable goods less foods................|   35.202   130.4   132.0   131.8     7.4    -.2      -.3       .7      .4
       Durable goods..............................|   16.296   131.6   134.6   134.6      .6    0         .5      -.1      .3
   Capital equipment..............................|   25.217   136.9   138.3   138.3      .3    0         .3      -.1      .1
     Manufacturing industries.....................|    6.607   138.3   138.7   138.7      .4    0         .1      0        .1
     Nonmanufacturing industries..................|   18.610   136.3   138.0   138.0      .2    0         .3      -.1      .2
                                                  |
 Intermediate materials, supplies, and components.|  100.000   124.6   125.4   125.6     3.9     .2       .3       .3      .2
   Materials and components for manufacturing.....|   47.713   125.0   126.0   126.1     1.6     .1       .6      0        .1
     Materials for food manufacturing.............|    3.633   121.1   121.4   118.5    -4.4   -2.4       .1      -.8    -2.1
     Materials for nondurable manufacturing.......|   15.730   125.5   127.8   128.4     4.1     .5      1.1       .2      .5
     Materials for durable manufacturing..........|   10.415   126.2   126.8   127.4     2.6     .5       .6       .2      .5
     Components for manufacturing.................|   17.935   125.6   125.7   125.7     -.1    0         .2      -.2     0
   Materials and components for construction......|   14.004   150.4   149.3   149.7     2.1     .3      -.3       .1      .3
   Processed fuels and lubricants.................|   11.845    90.0    91.2    91.7    21.0     .5       .2      1.7     1.4
     Manufacturing industries ....................|    4.580    92.2    92.7    93.4    14.2     .8       .1      1.5     1.1
     Nonmanufacturing industries..................|    7.265    88.5    90.0    90.4    25.4     .4       .2      1.8     1.7
   Containers.....................................|    3.881   143.6   146.5   146.5     5.6    0         .1      -.1     -.1
   Supplies.......................................|   22.557   134.2   135.1   135.2      .7     .1       .3       .1      .1
     Manufacturing industries.....................|    5.131   140.9   141.5   141.6      .6     .1       .2       .1      .1
     Nonmanufacturing industries..................|   17.426   131.4   132.3   132.4      .6     .1       .4       .1      .1
       Feeds......................................|    1.242    87.8    90.6    90.7    -2.7     .1      1.9       .3      .1
       Other supplies.............................|   16.184   136.6   137.3   137.4      .9     .1       .3       .1      .1
                                                  |
 Crude materials for further processing...........|  100.000   103.1   108.6   103.9    15.7   -4.3     -1.6      4.0    -3.9
   Foodstuffs and feedstuffs......................|   45.019   100.1    99.5    96.8     -.2   -2.7      -.1      1.0    -1.6
   Nonfood materials..............................|   54.981   101.5   110.9   105.0    28.7   -5.3     -2.4      5.9    -5.3
     Nonfood materials except fuel 3/.............|   29.160    96.2   104.7   109.5    51.2    4.6     -1.7      3.9     4.6
       Manufacturing 3/...........................|   27.653    87.9    95.8   100.4    53.8    4.8     -1.9      4.0     4.7
       Construction...............................|    1.507   196.8   200.2   201.4     6.9     .6      1.6      1.0      .3
     Crude fuel 4/................................|   25.821   100.5   110.5    90.5     3.2  -18.1     -3.4      8.7   -18.1
       Manufacturing industries...................|    2.104    99.7   110.1    90.5     7.5  -17.8     -5.3      9.1   -17.8
       Nonmanufacturing industries................|   23.717   102.4   112.5    92.1     2.8  -18.1     -3.2      8.6   -18.1
                                                  |
                Special groupings                 |
                                                  |
 Finished goods, excluding foods..................|5/ 76.715   133.0   134.8   134.7     3.6    -.1       .1       .2      .3
 Intermediate materials less foods and feeds......|6/ 95.125   125.4   126.2   126.5     4.3     .2       .3       .3      .4
 Intermediate foods and feeds.....................|6/  4.875   110.9   112.0   110.0    -3.9   -1.8       .5      -.5    -1.5
 Crude materials less agricultural products 3/ 7/.|8/ 52.084   102.0   111.7   105.6    31.0   -5.5     -2.7      6.3    -5.5
                                                  |
 Finished energy goods............................|5/ 11.972    83.5    84.0    83.8    18.4    -.2     -1.0      1.4     1.2
 Finished goods less energy.......................|5/ 88.028   142.5   144.0   144.0      .8    0        0        -.1      .2
 Finished consumer goods less energy..............|5/ 62.811   144.9   146.4   146.5     1.1     .1      -.1       .1      .3
                                                  |
 Finished goods less foods and energy.............|5/ 64.743   145.2   147.4   147.4      .9    0         .3      0        .1
 Finished consumer goods less foods and energy....|5/ 39.526   150.7   153.5   153.4     1.2    -.1       .3       .1      .1
 Consumer nondurable goods less foods and energy..|5/ 23.230   165.7   168.3   168.1     1.6    -.1       .2       .2     -.1
                                                  |
 Intermediate energy goods........................|6/ 11.941    89.6    90.9    91.4    21.1     .6       .2      1.8     1.4
 Intermediate materials less energy...............|6/ 88.059   132.3   133.0   133.1     1.5     .1       .4       .1      .1
 Intermediate materials less foods and energy.....|6/ 83.184   133.7   134.4   134.6     1.9     .1       .4       .1      .2
                                                  |
 Crude energy materials 3/........................|8/ 33.303    87.3    97.5    89.0    38.6   -8.7     -4.8      8.8    -8.7
 Crude materials less energy......................|8/ 66.697   109.4   110.6   109.3     4.2   -1.2       .6       .8     -.4
 Crude nonfood materials less energy 4/...........|8/ 21.678   136.8   142.8   145.5    13.6    1.9      2.4       .3     1.8
                                                  |
 _______________________________________________________________________________________________________________________________

   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 August 1999 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 |                                                       |                       |Dec. 1999 from:|
    code    |                      Grouping                         |_______________________|_______________|________________________
            |                                                       |       |       |       |       |       |       |       |
            |                                                       |Aug.   |Nov.   |Dec.   | Dec.  | Nov.  |Sept.to|Oct. to|Nov. to
            |                                                       |1999 1/|1999 1/|1999 1/| 1998  | 1999  |  Oct. |  Nov. |  Dec.
 ___________|_______________________________________________________|_______|_______|_______|_______|_______|_______|_______|________
            |                                                       |
            |FINISHED GOODS.........................................| 133.7   135.0   135.0     3.0    0       -0.1     0.2     0.3
            | FINISHED CONSUMER GOODS...............................| 133.2   134.5   134.4     3.9    -.1      -.3      .4      .4
            |  FINISHED CONSUMER FOODS..............................| 135.9   135.4   135.7      .9     .2      -.7      .1      .4
            |                                                       |
 01-11      |   Fresh fruits and melons 2/..........................|  98.2    93.0    93.6     6.0     .6      1.7   -13.2      .6
 01-13      |   Fresh and dry vegetables 2/.........................| 111.0   108.8   143.9     4.4   32.3    -10.2      .6    32.3
 01-71-07   |   Eggs for fresh use (Dec. 1991=100)..................|  82.7    85.8    74.7   -27.4  -12.9    -16.3    22.0   -15.5
 02-11      |   Bakery products 2/..................................| 177.9   178.8   179.4     1.5     .3       .2      .2      .3
 02-13      |   Milled rice 2/......................................| 125.0   106.2   106.7   -17.1     .5    -14.4     1.0      .5
 02-14-02   |   Pasta products (June 1985=100) 2/...................| 122.0   122.0   122.0     -.3    0        0       0       0
 02-21-01   |   Beef and veal.......................................| 110.2   108.5   109.5    10.8     .9      1.4    -5.7     2.3
 02-21-04   |   Pork................................................| 102.1    95.8   104.2    29.9    8.8     -5.9      .9     8.2
 02-22-03   |   Processed young chickens............................| 112.9   112.7   111.9    -7.1    -.7     -2.5     7.3     3.3
 02-22-06   |   Processed turkeys...................................|  96.3   106.2   103.0     5.5   -3.0      -.8     5.7     -.3
 02-23      |   Finfish and shellfish...............................| 189.0   197.7   190.5     8.5   -3.6     -3.0    -2.2     -.9
 02-3       |   Dairy products......................................| 139.9   142.5   132.7   -10.6   -6.9     -1.1    -1.3    -6.3
 02-4       |   Processed fruits and vegetables 2/..................| 127.7   128.5   129.6     1.9     .9      -.2      .9      .9
 02-55      |   Confectionery end products 2/.......................| 171.1   171.1   170.7      .9    -.2      -.2      .1     -.2
 02-62      |   Soft drinks.........................................| 138.5   139.3   139.3     3.3    0         .4      .9      .1
 02-63-01   |   Roasted coffee 2/...................................| 135.0   132.4   132.8    -3.0     .3      -.8      .1      .3
 02-78      |   Shortening and cooking oils 2/......................| 139.7   136.8   134.2    -9.4   -1.9     -2.6    -1.8    -1.9
            |                                                       |
            |  FINISHED CONSUMER GOODS EXCLUDING FOODS..............| 131.9   133.9   133.7     5.2    -.1      -.1      .4      .4
            |                                                       |
 02-61      |   Alcoholic beverages.................................| 136.6   137.8   136.4     -.1   -1.0       .2     0      -1.0
 03-81-01   |   Women's apparel 2/..................................| 123.9   122.6   123.9      .6    1.1       .4     0       1.1
 03-81-02   |   Men's and boys' apparel.............................| 132.9   132.7   132.7     -.5    0        -.1      .2     0
 03-81-03   |   Girls', children's, and infants' apparel 2/.........| 117.8   118.1   118.0    -2.5    -.1       .3     1.3     -.1
 03-82      |   Textile housefurnishings 2/.........................| 122.9   122.5   122.0    -1.0    -.4      -.1     0       -.4
 04-3       |   Footwear............................................| 144.6   144.7   144.9     0       .1       .1      .1     0
 05-41      |   Residential electric power (Dec. 1990=100)..........| 113.2   108.7   107.3     -.2   -1.3      -.5      .7    -1.0
 05-51      |   Residential gas (Dec. 1990=100).....................| 114.4   121.1   118.6     1.2   -2.1       .3     2.7    -2.9
 05-71      |   Gasoline............................................|  75.0    74.4    76.2    76.4    2.4     -3.8      .1     8.5
 05-73-02-01|   Fuel oil No. 2......................................|  60.1    71.8    72.8    87.6    1.4     -5.5     7.5     3.8
 06-35      |   Pharmaceutical preps, ethical (Prescription) 2/.....| 336.9   340.8   339.8     1.3    -.3      1.2     -.2     -.3
 06-36      |   Pharmaceutical preps,proprietary (Over-counter) 2/..| 186.1   186.7   186.7      .9    0        -.1     0       0
 06-71      |   Soaps and synthetic detergents 2/...................| 126.7   127.3   127.3     1.4    0         .1     -.1     0
 06-75      |   Cosmetics and other toilet preparations 2/..........| 135.9   136.5   136.6     2.2     .1       .2     1.5      .1
 07-12      |   Tires, tubes, tread, etc 2/.........................|  92.8    93.5    93.5     -.4    0       -1.3     2.0     0
 09-15-01   |   Sanitary papers and health products 2/..............| 143.1   145.1   143.3    -1.6   -1.2       .2      .7    -1.2
 09-31-01   |   Newspaper circulation 2/............................| 206.9   207.2   207.1     1.4    0        0       -.3     0
 09-32-01   |   Periodical circulation..............................| 197.7   197.0   196.9      .5    -.1      -.3      .4      .2
 09-33      |   Book publishing 2/..................................| 210.9   215.9   218.0     2.7    1.0      1.3      .6     1.0
 12-1       |   Household furniture 2/..............................| 150.5   151.2   151.4     1.2     .1       .4     -.1      .1
 12-3       |   Floor coverings 2/..................................| 126.9   128.0   128.6      .5     .5       .8     -.1      .5
 12-4       |   Household appliances ...............................| 108.7   108.0   108.0     -.7    0        -.6     0        .2
 12-5       |   Home electronic equipment 2/........................|  73.9    73.2    73.2    -1.7    0        -.3     -.7     0
 12-62      |   Household glassware 2/..............................| 164.3   164.3   164.2     1.1    -.1       .1     -.1     -.1
 12-64      |   Household flatware 2/...............................| 139.3   139.3   140.0     0       .5      0       0        .5
 12-66      |   Lawn and garden equip., ex. tractors 2/.............| 131.9   131.8   132.0     -.2     .2      -.2     0        .2
 14-11-01   |   Passenger cars......................................| 127.4   135.9   135.8     1.3    -.1      1.1      .2      .7
 15-11      |   Toys, games, and children's vehicles................| 122.6   122.6   122.7    -1.0     .1       .5     -.6      .2
 15-12      |   Sporting and athletic goods 2/......................| 126.1   125.8   125.9     -.2     .1      -.4      .1      .1
 15-2       |   Tobacco products 2/.................................| 363.9   394.8   395.3     8.6     .1      0        .1      .1
 15-5       |   Mobile homes 2/.....................................| 158.6   159.8   159.5     2.4    -.2       .6     -.1     -.2
 15-94-02   |   Jewelry, platinum, & karat gold 2/..................| 125.4   127.2   127.1     -.5    -.1       .6     1.0     -.1
 15-94-04   |   Costume jewelry and novelties 2/....................| 140.1   140.1   142.5     2.0    1.7      0       0       1.7
            |                                                       |
            | CAPITAL EQUIPMENT.....................................| 136.9   138.3   138.3      .3    0         .3     -.1      .1
            |                                                       |
 11-1       |   Agricultural machinery and equipment 2/.............| 152.2   151.6   151.5      .5    -.1       .1      .2     -.1
 11-2       |   Construction machinery and equipment................| 147.4   147.7   147.8     1.6     .1       .1      .1      .1
 11-37      |   Metal cutting machine tools 2/......................| 161.0   160.9   161.0      .5     .1       .1     0        .1
 11-38      |   Metal forming machine tools 2/......................| 159.8   160.0   160.0      .9    0        0        .1     0
 11-39      |   Tools, dies, jigs, fixtures, and ind. molds 2/......| 140.1   140.3   140.3      .9    0         .1      .1     0
 11-41      |   Pumps, compressors, and equipment...................| 151.9   152.1   152.1     1.6    0         .1      .1      .1
 11-44      |   Industrial material handling equipment 2/...........| 133.0   133.2   133.3      .9     .1       .2      .1      .1
 11-51      |   Electronic computers (Dec. 1998=100) 2/.............|  83.5    81.2    80.3   -19.7   -1.1     -1.3    -1.0    -1.1
 11-62      |   Textile machinery 2/................................| 154.3   154.6   155.0     1.2     .3      0        .2      .3
 11-64      |   Paper industries machinery (June 1982=100)..........| 162.9   163.0   163.2     1.1     .1       .1     -.5      .1
 11-65      |   Printing trades machinery 2/........................| 141.2   141.4   141.4      .7    0        0       0       0
 11-74      |   Transformers and power regulators 2/................| 134.5   134.6   134.5     3.0    -.1       .1     2.4     -.1
 11-76      |   Communication & related equip. (Dec. 1985=100) 2/...| 112.1   112.1   112.1    -1.2    0        -.1     -.4     0
 11-79-05   |   X-ray and electromedical equipment 2/...............| 102.8   102.8   103.0    -2.9     .2       .1    -1.2      .2
 11-91      |   Oil field and gas field machinery ..................| 126.2   126.6   126.8      .4     .2      -.2      .1      .3
 11-92      |   Mining machinery and equipment 2/...................| 145.0   144.4   144.5     1.5     .1       .1     0        .1
 11-93      |   Office and store machines and equipment 2/..........| 112.4   112.4   112.4      .1    0        0       0       0
 12-2       |   Commercial furniture 2/.............................| 157.0   157.0   157.3     1.2     .2      0       0        .2
 14-11-05   |   Light motor trucks..................................| 154.4   159.7   158.7      .4    -.6       .8    -1.1     0
 14-11-06   |   Heavy motor trucks 2/...............................| 146.8   147.8   147.8     1.7    0         .1     0       0
 14-14      |   Truck trailers 2/...................................| 136.1   137.5   137.4     1.6    -.1      0        .1     -.1
 14-21-02   |   Civilian aircraft (Dec. 1985=100)...................| 151.1   152.4   152.5     1.1     .1       .5      .1      .3
 14-31      |   Ships (Dec. 1985=100) 2/............................| 145.8   145.8   145.8     0      0        0       0       0
 14-4       |   Railroad equipment..................................| 135.9   134.9   135.1     -.1     .1      -.1     -.2      .1
            |                                                       |
            |INTERMEDIATE MATERIALS, SUPPLIES, AND COMPONENTS.......| 124.6   125.4   125.6     3.9     .2       .3      .3      .2
            |                                                       |
            | INTERMEDIATE FOODS AND FEEDS..........................| 110.9   112.0   110.0    -3.9   -1.8       .5     -.5    -1.5
            |                                                       |
 02-12-03   |   Flour 2/............................................| 106.1   103.9    99.2    -7.5   -4.5     -1.5     1.6    -4.5
 02-53      |   Refined sugar 2/....................................| 122.0   120.2   118.0    -1.9   -1.8      -.6     -.7    -1.8
 02-54      |   Confectionery materials.............................|  93.6    93.6    94.4     1.7     .9      3.4    -1.3     1.3
 02-72      |   Crude vegetable oils 2/.............................|  85.2    81.4    79.3   -35.0   -2.6     -4.3     -.4    -2.6
 02-9       |   Prepared animal feeds 2/............................|  97.0    99.5    99.5    -2.4    0        1.4      .3     0
            |                                                       |
            | INTERMEDIATE MATERIALS LESS FOODS AND FEEDS...........| 125.4   126.2   126.5     4.3     .2       .3      .3      .4
            |                                                       |
 03-1       |   Synthetic fibers 2/.................................| 103.0   103.5   103.7    -3.0     .2       .9     -.1      .2
 03-2       |   Processed yarns and threads 2/......................| 108.9   107.8   107.7    -3.2    -.1      0       0       -.1
 03-3       |   Gray fabrics 2/.....................................| 112.2   112.4   111.2    -6.4   -1.1      -.2      .1    -1.1
 03-4       |   Finished fabrics....................................| 122.8   122.9   122.8      .2    -.1       .2     -.1      .2
 03-83-03   |   Industrial textile products 2/......................| 129.3   130.2   130.2     1.2    0         .1      .3     0
 04-2       |   Leather.............................................| 176.1   178.7   178.2      .2    -.3       .3     0      -1.3
 05-32      |   Liquefied petroleum gas 2/..........................|  82.0   102.1   101.9    86.3    -.2      5.9     2.3     -.2
 ____________________________________________________________________________________________________________________________________
 See footnotes at end of table.
Table 2.  Producer price indexes and percent changes for selected commodity groupings by stage of processing - Continued
(1982=100 unless otherwise indicated)
____________________________________________________________________________________________________________________________________
           |                                                       |                       |Unadjusted     |
           |                                                       |                       | percent       |Seasonally adjusted
           |                                                       |   Unadjusted index    |change to      |percent change from:
 Commodity |                                                       |                       |Dec. 1999 from:|
   code    |                      Grouping                         |_______________________|_______________|________________________
           |                                                       |       |       |       |       |       |       |       |
           |                                                       |Aug.   |Nov.   |Dec.   | Dec.  | Nov.  |Sept.to|Oct. to|Nov. to
           |                                                       |1999 1/|1999 1/|1999 1/| 1998  | 1999  |  Oct. |  Nov. |  Dec.
___________|_______________________________________________________|_______|_______|_______|_______|_______|_______|_______|________
           |                                                       |
           | INTERMEDIATE MATERIALS LESS FOODS AND FEEDS           |
           |   -Continued..........................................|
05-42      |   Commercial electric power...........................| 136.2   130.1   126.3     0.9   -2.9      3.6     0.7    -3.2
05-43      |   Industrial electric power...........................| 133.9   130.1   128.8     1.7   -1.0      2.0     1.4    -1.3
05-52      |   Commercial natural gas (Dec. 1990=100)..............| 107.0   117.0   114.5     3.5   -2.1     -3.4     1.9    -4.7
05-53      |   Industrial natural gas (Dec. 1990=100)..............| 100.8   111.6   112.9     7.4    1.2     -4.7      .8     -.7
05-54      |   Natural gas to electric utilities (Dec. 1990=100)...|  80.1    91.4    93.7    14.5    2.5     -4.3    -5.2     5.1
05-72-03   |   Jet fuels...........................................|  57.0    66.6    73.8    97.3   10.8     -2.6     3.1    14.9
05-73-03   |   No. 2 Diesel fuel...................................|  65.6    71.5    74.9    92.1    4.8     -6.3     8.3    10.1
05-74      |   Residual fuel 2/....................................|  56.2    64.3    73.6   105.6   14.5     -6.4     1.4    14.5
06-1       |   Industrial chemicals 2/.............................| 118.2   122.8   124.1     4.4    1.1      2.0      .8     1.1
06-21      |   Prepared paint......................................| 157.4   157.9   157.7     1.2    -.1       .2      .3     -.1
06-22      |   Paint materials 2/..................................| 144.4   144.6   144.0      .3    -.4       .2      .1     -.4
06-31      |   Medicinal and botanical chemicals ..................| 144.5   144.5   144.5     6.9    0        -.5      .1      .3
06-4       |   Fats and oils, inedible 2/..........................|  78.9    97.8    93.3   -15.4   -4.6     11.8     -.9    -4.6
06-51      |   Mixed fertilizers...................................| 114.2   111.1   111.3    -2.0     .2      -.1    -1.5      .3
06-52-01   |   Nitrogenates........................................|  89.7    96.5    97.5     1.7    1.0      4.3     -.7     1.2
06-52-02   |   Phosphates 2/.......................................| 113.2   107.1   105.0    -8.5   -2.0     -4.2     -.1    -2.0
06-53      |   Other agricultural chemicals........................| 145.2   146.5   146.5      .1    0         .3     -.6     0
06-6       |   Plastic resins and materials 2/.....................| 130.0   134.2   135.9    17.3    1.3      2.8      .1     1.3
07-11-02   |   Synthetic rubber 2/.................................| 113.4   115.0   115.1     -.6     .1       .3      .8      .1
07-21      |   Plastic construction products ......................| 130.2   132.0   131.9     5.6    -.1       .4      .9      .2
07-22      |   Unsupported plastic film, sheet, & other shapes 2/..| 127.8   130.2   130.4     2.8     .2       .6     1.5      .2
07-26      |   Plastic parts and components for manufacturing 2/...| 117.3   117.1   117.1     -.1    0        0       -.4     0
08-11      |   Softwood lumber 2/..................................| 207.0   189.0   192.2     9.8    1.7     -4.3      .5     1.7
08-12      |   Hardwood lumber ....................................| 176.3   179.6   180.8     2.6     .7       .6     1.0      .7
08-2       |   Millwork 2/.........................................| 177.3   175.9   175.5     2.4    -.2      -.6     0       -.2
08-3       |   Plywood 2/..........................................| 202.1   160.1   161.1     0       .6    -11.5     1.0      .6
09-11      |   Woodpulp 2/.........................................| 123.7   127.8   130.7    12.0    2.3      -.6     1.6     2.3
09-13      |   Paper...............................................| 141.7   144.6   145.3     2.8     .5      1.1     1.0      .1
09-14      |   Paperboard..........................................| 158.6   162.3   162.4    13.1     .1      1.0    -1.4     -.5
09-15-03   |   Paper boxes and containers 2/.......................| 159.9   164.3   164.1     8.0    -.1       .2     0       -.1
09-2       |   Building paper and board 2/.........................| 150.5   141.0   141.5     9.4     .4     -3.1     -.1      .4
09-37      |   Commercial printing (June 1982=100) 2/..............| 152.3   152.9   152.9      .1    0         .1      .3     0
10-15      |   Foundry and forge shop products.....................| 135.1   135.0   135.1      .1     .1       .1     -.1      .1
10-17      |   Steel mill products 2/..............................| 104.7   105.6   106.0    -2.5     .4       .8      .2      .4
10-22      |   Primary nonferrous metals 2/........................| 104.1   111.2   112.0    14.8     .7      2.8      .8      .7
10-25-01   |   Aluminum mill shapes 2/.............................| 139.4   142.0   144.1     5.1    1.5      3.7      .1     1.5
10-25-02   |   Copper and brass mill shapes 2/.....................| 155.1   158.8   160.3     9.5     .9      -.7      .8      .9
10-26      |   Nonferrous wire and cable 2/........................| 135.3   137.4   137.9      .4     .4       .7     -.7      .4
10-3       |   Metal containers 2/.................................| 105.9   106.5   106.4     -.7    -.1       .5     0       -.1
10-4       |   Hardware............................................| 149.7   149.9   150.0     1.9     .1       .3      .1      .1
10-5       |   Plumbing fixtures and brass fittings................| 176.7   177.4   178.2     2.4     .5       .1      .3      .7
10-6       |   Heating equipment...................................| 154.3   154.2   154.1      .1    -.1       .1     -.3      .1
10-7       |   Fabricated structural metal products................| 143.2   143.7   144.3     1.1     .4       .2      .1      .6
10-88      |   Fabricated ferrous wire products (June 1982=100) 2/.| 130.3   130.3   129.9     -.2    -.3       .2     -.6     -.3
10-89      |   Other misc. metal products 2/.......................| 125.3   125.7   125.8     0       .1       .2     0        .1
11-45      |   Mechanical power transmission equipment.............| 161.6   161.7   162.1     2.0     .2       .2     0       -.1
11-48      |   Air conditioning and refrigeration equipment........| 136.0   136.0   136.0     0      0         .4     -.2      .1
11-49-02   |   Metal valves, ex.fluid power (Dec. 1982=100) 2/.....| 160.3   160.4   160.9     1.2     .3      0        .1      .3
11-49-05   |   Ball and roller bearings............................| 166.9   167.0   166.7      .5    -.2       .1      .1     -.2
11-71      |   Wiring devices......................................| 152.6   153.4   153.5      .6     .1       .7      .3      .2
11-73      |   Motors, generators, motor generator sets............| 145.9   145.6   145.7     -.1     .1      0        .3     -.1
11-75      |   Switchgear, switchboard, etc., equipment............| 151.1   151.3   151.3     1.0    0         .1     -.4      .2
11-78      |   Electronic components and accessories 2/............|  97.7    98.9    98.6     -.5    -.3       .4     -.2     -.3
11-94      |   Internal combustion engines.........................| 142.9   143.3   143.1     1.5    -.1       .1      .1     -.1
11-95      |   Machine shop products 2/............................| 136.8   136.9   137.0      .1     .1      0        .1      .1
13-11      |   Flat glass 2/.......................................| 107.1   106.9   106.3     -.5    -.6      -.5      .3     -.6
13-22      |   Cement..............................................| 151.3   150.8   150.6     1.8    -.1       .1      .3      .3
13-3       |   Concrete products...................................| 143.8   144.4   144.1     1.9    -.2       .3      .1      .1
13-6       |   Asphalt felts and coatings 2/.......................|  99.1    99.8   100.1      .8     .3      0       0        .3
13-7       |   Gypsum products 2/..................................| 214.1   223.2   227.4    23.1    1.9      2.2     2.1     1.9
13-8       |   Glass containers 2/.................................| 125.9   125.7   125.7     -.2    0        0       0       0
14-12      |   Motor vehicle parts 2/..............................| 113.9   113.5   113.5     -.9    0         .5     -.4     0
14-23      |   Aircraft engines & engine parts (Dec. 1985=100).....| 138.1   139.1   138.7      .9    -.3      1.0      .4     -.6
14-25      |   Aircraft parts & aux.equip.,nec (June 1985=100) 2/..| 143.0   143.0   142.3    -1.0    -.5      0       0       -.5
15-42      |   Photographic supplies 2/............................| 128.4   128.1   128.1     -.7    0        -.2     0       0
15-6       |   Medical/surgical/personal aid devices...............| 144.8   145.4   145.3      .9    -.1       .6     -.1     -.1
           |                                                       |
           | CRUDE MATERIALS FOR FURTHER PROCESSING................| 103.1   108.6   103.9    15.7   -4.3     -1.6     4.0    -3.9
           |                                                       |
           |  CRUDE FOODSTUFFS AND FEEDSTUFFS......................| 100.1    99.5    96.8     -.2   -2.7      -.1     1.0    -1.6
           |                                                       |
01-21      |   Wheat 2/............................................|  79.6    81.3    74.0   -13.9   -9.0     -3.9     5.0    -9.0
01-22-02-05|   Corn................................................|  79.2    74.4    73.2   -12.4   -1.6     -4.9    11.5     -.9
01-31      |   Slaughter cattle 2/.................................|  97.3   101.6   102.3    19.4     .7      5.8    -1.6      .7
01-32      |   Slaughter hogs......................................|  62.0    55.2    60.9   266.9   10.3      5.8     6.2     7.3
01-41-02   |   Slaughter broilers/fryers...........................| 126.9   139.5   134.8    -4.7   -3.4     -2.6    16.2     4.3
01-42      |   Slaughter turkeys...................................| 130.6   138.7   123.1     -.4  -11.2     -3.4    -2.9    -3.4
01-6       |   Fluid milk..........................................| 112.6   104.5    90.6   -31.6  -13.3     -5.6    -8.9   -12.7
01-83-01-31|   Soybeans 2/.........................................|  79.9    78.6    76.5   -17.5   -2.7     -2.8    -1.8    -2.7
02-52-01-01|   Cane sugar,raw 2/...................................| 115.2    99.8    97.0   -17.5   -2.8     -3.9    -8.9    -2.8

           |                                                       |
           |  CRUDE NONFOOD MATERIALS..............................| 101.5   110.9   105.0    28.7   -5.3     -2.4     5.9    -5.3
           |                                                       |
01-51-01-01|   Raw cotton..........................................|  83.4    80.3    78.2   -20.8   -2.6      3.0     -.7    -2.3
01-92-01-01|   Leaf tobacco 2/.....................................|  96.4   104.1   112.0     -.3    7.6      3.9    -5.0     7.6
04-11      |   Cattle hides 2/.....................................| 143.0   141.2   161.2    12.2   14.2      4.8   -10.1    14.2
05-1       |   Coal 2/.............................................|  90.2    89.6    87.3   -10.1   -2.6      5.5     -.6    -2.6
05-31      |   Natural gas 2/......................................| 104.3   118.4    91.9    10.2  -22.4     -6.4    11.7   -22.4
05-61      |   Crude petroleum 2/..................................|  57.2    66.2    71.9   175.5    8.6     -7.3     9.2     8.6
08-5       |   Logs, timber, etc...................................| 202.2   206.7   206.1     4.1    -.3      2.1      .8     -.5
09-12      |   Wastepaper 2/.......................................| 208.5   238.0   243.8   109.6    2.4      4.4     5.9     2.4
10-11      |   Iron ore 2/.........................................|  94.8    94.8    94.8     -.4    0        0       0       0
10-12      |   Iron and steel scrap 2/.............................| 143.4   155.9   166.2    40.3    6.6       .3     6.9     6.6
10-21      |   Nonferrous metal ores (Dec. 1983=100) 2/............|  62.1    67.0    65.9     6.5   -1.6     12.1    -6.9    -1.6
10-23-01   |   Copper base scrap 2/................................| 115.3   114.6   116.0    15.4    1.2     -1.8     -.7     1.2
10-23-02   |   Aluminum base scrap.................................| 171.1   173.6   177.2    22.5    2.1       .3      .3     1.0
13-21      |   Construction sand, gravel, and crushed stone........| 157.8   158.2   158.7     2.9     .3       .3      .4      .4
____________________________________________________________________________________________________________________________________

1/  The indexes for August 1999 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                    | Aug. 1999 | Nov. 1999 | Dec. 1999 |
 _________|________________________________________________|___________|___________|___________|
          |                                                |           |           |           |
          | Finished Goods (1967=100)......................|   375.3   |   378.9   |   378.9   |
          | All commodities................................|   126.9   |   128.4   |   128.0   |
          |                                                |           |           |           |
          |                                                |           |           |           |
          |            MAJOR COMMODITY GROUPS              |           |           |           |
          |                                                |           |           |           |
          | Farm products and processed foods and feeds....|   120.9   |   120.6   |   119.7   |
 01       |   Farm products................................|    99.0   |    97.6   |    96.7   |
 02       |   Processed foods and feeds....................|   131.8   |   132.0   |   131.1   |
          |                                                |           |           |           |
          | Industrial commodities.........................|   128.1   |   129.9   |   129.6   |
 03       |   Textile products and apparel.................|   120.9   |   120.6   |   120.7   |
 04       |   Hides, skins, leather, and related products..|   146.3   |   146.6   |   149.4   |
 05       |   Fuels and related products and power 2/......|    86.5   |    89.6   |    87.8   |
 06       |   Chemicals and allied products 2/.............|   144.6   |   147.1   |   147.6   |
 07       |   Rubber and plastic products..................|   122.8   |   123.4   |   123.5   |
 08       |   Lumber and wood products.....................|   189.6   |   181.6   |   182.5   |
 09       |   Pulp, paper, and allied products.............|   175.2   |   177.5   |   177.9   |
 10       |   Metals and metal products....................|   124.9   |   126.6   |   127.3   |
 11       |   Machinery and equipment......................|   124.0   |   124.2   |   124.2   |
 12       |   Furniture and household durables.............|   131.8   |   131.9   |   132.1   |
 13       |   Nonmetallic mineral products.................|   139.5   |   140.1   |   140.2   |
 14       |   Transportation equipment.....................|   140.4   |   143.2   |   143.0   |
 15       |   Miscellaneous products.......................|   164.8   |   169.3   |   169.8   |
          |                                                |           |           |           |
          | Industrial commodities less fuels and related  |           |           |           |
          |   products and power...........................|   139.5   |   140.8   |   141.1   |
          |                                                |           |           |           |
          |                                                |           |           |           |
          |             OTHER COMMODITY GROUPINGS          |           |           |           |
          |                                                |           |           |           |
 01-1     | Fruits and melons, fresh and dry vegetables,   |           |           |           |
          |   and tree nuts................................|   112.1   |   104.8   |   118.8   |
 01-2     | Grains.........................................|    80.9   |    77.3   |    74.0   |
 01-3     | Slaughter livestock............................|    88.6   |    89.6   |    91.9   |
 01-4     | Slaughter poultry..............................|   126.3   |   137.7   |   130.7   |
 01-5     | Plant and animal fibers........................|    82.7   |    79.4   |    77.3   |
 01-7     | Chicken eggs...................................|    95.7   |   101.7   |    82.1   |
 01-8     | Hay, hayseeds, and oilseeds....................|    99.8   |    97.3   |    96.1   |
 01-83    | Oilseeds.......................................|    88.8   |    87.4   |    87.4   |
 01-9     | Other farm products............................|   143.8   |   155.2   |   167.0   |
 02-1     | Cereal and bakery products.....................|   157.8   |   157.1   |   157.0   |
 02-2     | Meats, poultry, and fish.......................|   116.5   |   115.9   |   117.2   |
 02-22    | Processed poultry..............................|   113.7   |   115.1   |   114.5   |
 02-5     | Sugar and confectionery........................|   135.7   |   134.4   |   133.8   |
 02-6     | Beverages and beverage materials...............|   138.7   |   139.4   |   138.9   |
 02-63    | Packaged beverage materials....................|   133.2   |   130.9   |   131.3   |
 02-7     | Fats and oils..................................|   118.8   |   115.8   |   114.0   |
 03-81    | Apparel........................................|   127.0   |   126.5   |   127.0   |
 04-4     | Other leather and related products.............|   145.8   |   145.8   |   145.9   |
 05-3     | Gas fuels 2/...................................|    97.2   |   112.6   |    93.2   |
 05-4     | Electric power.................................|   133.9   |   128.9   |   126.5   |
 05-7     | Refined petroleum products.....................|    68.6   |    71.8   |    74.8   |
 06-3     | Drugs and pharmaceuticals......................|   252.7   |   254.7   |   254.3   |
 06-5     | Agricultural chemicals and products............|   123.3   |   122.9   |   122.5   |
 06-7     | Other chemicals and allied products............|   135.5   |   135.9   |   135.9   |
 07-1     | Rubber and rubber products.....................|   114.1   |   114.6   |   114.6   |
 07-11    | Rubber, except natural rubber..................|   112.8   |   114.4   |   114.5   |
 07-13    | Miscellaneous rubber products..................|   138.4   |   138.3   |   138.3   |
 07-2     | Plastic products...............................|   130.1   |   130.7   |   130.9   |
 08-1     | Lumber.........................................|   195.6   |   184.1   |   186.7   |
 09-1     | Pulp, paper, and products, excluding building  |           |           |           |
          |   paper and board..............................|   149.7   |   153.5   |   153.8   |
 09-15    | Converted paper and paperboard products........|   154.2   |   157.4   |   156.9   |
 10-1     | Iron and steel.................................|   114.0   |   115.8   |   117.1   |
 10-2     | Nonferrous metals..............................|   120.2   |   124.3   |   125.4   |
 10-25    | Nonferrous mill shapes.........................|   134.3   |   137.5   |   139.4   |
 11-3     | Metalworking machinery and equipment...........|   148.3   |   148.4   |   148.3   |
 11-4     | General purpose machinery and equipment........|   149.6   |   149.8   |   149.9   |
 11-6     | Special industry machinery.....................|   161.5   |   161.8   |   161.9   |
 11-7     | Electrical machinery and equipment.............|   119.4   |   119.8   |   119.8   |
 11-9     | Miscellaneous machinery and equipment..........|   133.2   |   133.4   |   133.3   |
 12-6     | Other household durable goods..................|   153.0   |   153.4   |   153.4   |
 13-2     | Concrete ingredients...........................|   152.8   |   152.9   |   153.1   |
 14-1     | Motor vehicles and equipment...................|   129.7   |   133.7   |   133.5   |
 15-1     | Toys, sporting goods, small arms, etc..........|   132.3   |   132.2   |   132.3   |
 15-4     | Photographic equipment and supplies............|   110.9   |   110.3   |   110.7   |
 15-9     | Other miscellaneous products...................|   134.7   |   135.4   |   136.1   |
 __________________________________________________________|___________|___________|___________|

 1/  Data for August 1999 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_Dec._1999_from:
    code          |                                              |base |       |       |       |        |
                  |                                              |     |Aug.   |Nov.   |Dec.   |  Dec.  |  Nov.
                  |                                              |     |1999 2/|1999 2/|1999 2/|  1998  |  1999
__________________|______________________________________________|_____|_______|_______|_______|________|_________
                  |                                              |     |
                  |Total mining industries...................... |12/84|  84.7    93.9    87.5     31.0     -6.8
       10         | Metal mining................................ |12/84|  69.3    73.5    72.6      4.5     -1.2
       12         | Coal mining................................. |12/85|  86.9    86.5    85.1     -6.9     -1.6
       13         | Oil and gas extraction...................... |12/85|  87.6    99.8    91.6     45.6     -8.2
       14         | Mining and quarrying of non-metallic         |     |
                  |  minerals, except fuels..................... |12/84| 134.2   134.2   134.4      1.3       .1
                  |                                              |     |
                  |Total manufacturing industries............... |12/84| 129.0   130.3   130.6      3.7       .2
       20         | Food and kindred products................... |12/84| 126.8   127.2   126.7       .5      -.4
       21         | Tobacco manufactures........................ |12/84| 316.5   344.6   345.0      9.2       .1
       22         | Textile mill products....................... |12/84| 116.0   116.0   116.1     -1.3       .1
       23         | Apparel and other finished products made     |     |
                  |  from fabrics and similar materials......... |12/84| 125.5   125.6   125.6       .6    0
       24         | Lumber and wood products, except furniture.. |12/84| 166.9   160.0   160.9      3.3       .6
       25         | Furniture and fixtures...................... |12/84| 141.6   141.8   142.2      1.4       .3
       26         | Paper and allied products................... |12/84| 137.3   140.2   140.3      5.1       .1
       27         | Printing, publishing, and allied industries. |12/84| 177.7   178.8   179.2      2.3       .2
       28         | Chemicals and allied products............... |12/84| 150.0   152.2   152.5      3.1       .2
       29         | Petroleum refining and related products..... |12/84|  85.3    89.6    92.8     64.8      3.6
       30         | Rubber and miscellaneous plastic products... |12/84| 122.5   123.2   123.3      1.2       .1
       31         | Leather and leather products................ |12/84| 136.7   137.2   137.3       .4       .1
       32         | Stone, clay, glass, and concrete products... |12/84| 133.1   133.7   133.6      2.6      -.1
       33         | Primary metal industries.................... |12/84| 115.7   116.9   117.2       .3       .3
       34         | Fabricated metal products, except machinery  |     |
                  |  and transportation equipment............... |12/84| 129.1   129.4   129.6       .7       .2
       35         | Machinery, except electrical................ |12/84| 117.2   117.2   117.2      -.1    0
       36         | Electrical and electronic machinery,         |     |
                  |  equipment, and supplies.................... |12/84| 109.5   109.4   109.4      -.5    0
       37         | Transportation equipment.................... |12/84| 132.9   136.1   136.0       .8      -.1
       38         | Measuring and controlling instruments;       |     |
                  |  photographic, medical, optical goods;       |     |
                  |  watches, clocks............................ |12/84| 125.0   125.3   125.4      -.4       .1
       39         | Miscellaneous manufacturing industries...... |12/85| 130.1   130.2   130.6       .6       .3
                  |                                              |     |
                  |Services industries                           |     |
       40         | Railroad transportation..................... |12/96| 101.4   101.5   101.6       .1       .1
       42         | Motor freight transportation and warehousing |06/93| 115.1   115.3   115.8      2.8       .4
       43         | United states postal service................ |06/89| 135.2   135.2   135.2      2.2    0
       44         | Water transportation........................ |12/92| 117.2   116.3   117.2     10.9       .8
       45         | Transportation by air....................... |12/92| 131.7   133.0   133.7      5.7       .5
       46         | Pipe lines, except natural gas.............. |12/86|  98.2    98.4    98.4      -.8    0
       80         | Health services............................. |12/94| 110.0   110.3   110.5      1.9       .2
       81         | Legal services.............................. |12/96| 108.9   109.5   109.5      2.6    0
__________________________________________________________________________________________________________________
1/ Indexes in this table are derived from the net-output-weighted industry price indexes.  Because of differences 
   in coverage and aggregation methodology, they will generally not match the movements of similarly-titled 
   indexes which are derived from traditional commodity groupings.
2/ The indexes for August 1999 have been recalculated to incorporate late reports and corrections by respondents.
   All indexes are subject to revision 4 months after original publication.
Table 5.  Producer price indexes by stage of processing, seasonally adjusted
(1982=100)
_____________________________________________________________________________________________________________
                                                       |
                                                       |                      Index 1/   
                                                       |_____________________________________________________
               Grouping                                |        |        |        |        |        |        
                                                       |  July  |  Aug.  |  Sep.  |  Oct.  |  Nov.  |  Dec.  
                                                       |  1999  |  1999  |  1999  |  1999  |  1999  |  1999  
_______________________________________________________|________|________|________|________|________|________
      Finished goods...................................|  132.7    133.4    134.7    134.5    134.8    135.2
        Finished consumer goods........................|  131.7    132.6    134.2    133.8    134.3    134.8
          Finished consumer foods......................|  134.4    134.7    136.0    135.0    135.1    135.7
            Crude......................................|  120.5    120.6    121.4    117.3    118.5    125.9
            Processed..................................|  135.5    135.8    137.1    136.4    136.4    136.5
          Finished consumer goods, excluding foods.....|  130.4    131.5    133.3    133.2    133.7    134.2
            Nondurable goods less foods................|  127.9    129.5    131.7    131.3    132.2    132.7
            Durable goods..............................|  132.4    132.5    133.2    133.8    133.6    134.0
        Capital equipment..............................|  137.3    137.2    137.6    138.0    137.9    138.1
          Manufacturing industries.....................|  138.5    138.4    138.5    138.6    138.6    138.7
          Nonmanufacturing industries..................|  136.8    136.8    137.3    137.7    137.5    137.8
                                                       |
      Intermediate materials, supplies, and components.|  123.5    124.2    124.7    125.1    125.5    125.8
        Materials and components for manufacturing.....|  124.7    125.0    125.1    125.9    125.9    126.0
          Materials for food manufacturing.............|  118.9    120.1    121.8    121.9    120.9    118.4
          Materials for nondurable manufacturing.......|  125.0    125.6    125.9    127.3    127.6    128.2
          Materials for durable manufacturing..........|  126.1    126.2    125.8    126.6    126.9    127.5
          Components for manufacturing.................|  125.6    125.6    125.7    126.0    125.8    125.8
        Materials and components for construction......|  150.3    150.3    149.6    149.2    149.4    149.9
        Processed fuels and lubricants.................|   85.8     87.9     89.7     89.9     91.4     92.7
          Manufacturing industries ....................|   88.7     90.1     92.0     92.1     93.5     94.5
          Nonmanufacturing industries..................|   83.8     86.4     88.1     88.3     89.9     91.4
        Containers.....................................|  142.2    143.8    146.4    146.5    146.4    146.3
        Supplies.......................................|  134.0    134.3    134.5    134.9    135.1    135.2
          Manufacturing industries.....................|  140.5    140.9    141.0    141.3    141.5    141.7
          Nonmanufacturing industries..................|  131.2    131.4    131.7    132.2    132.3    132.4
            Feeds......................................|   87.1     87.8     88.6     90.3     90.6     90.7
            Other supplies.............................|  136.5    136.7    136.8    137.2    137.4    137.5
                                                       |
      Crude materials for further processing...........|   97.3    102.2    106.5    104.8    109.0    104.7
        Foodstuffs and feedstuffs......................|   94.7     98.0     99.3     99.2    100.2     98.6
        Nonfood materials..............................|   95.6    101.5    107.5    104.9    111.1    105.2
          Nonfood materials except fuel 2/.............|   93.0     96.3    102.9    101.1    105.0    109.8
            Manufacturing 2/...........................|   84.8     87.9     94.2     92.4     96.1    100.6
            Construction...............................|  196.3    198.1    198.0    201.2    203.2    203.9
          Crude fuel 3/................................|   91.6    100.5    105.3    101.7    110.5     90.5
            Manufacturing industries...................|   90.5     99.7    106.5    100.9    110.1     90.5
            Nonmanufacturing industries................|   93.3    102.4    107.0    103.6    112.5     92.1
                                                       |
                     Special groupings                 |
                                                       |
      Finished goods, excluding foods..................|  132.1    132.9    134.2    134.3    134.6    135.0
      Intermediate materials less foods and feeds......|  124.4    125.0    125.4    125.8    126.2    126.7
      Intermediate foods and feeds.....................|  109.1    110.2    111.6    112.2    111.6    109.9
      Crude materials less agricultural products 2/....|   96.1    102.0    108.2    105.3    111.9    105.7
                                                       |
      Finished energy goods............................|   79.1     82.0     83.9     83.1     84.3     85.3
      Finished goods less energy.......................|  142.5    142.5    143.7    143.7    143.6    143.9
      Finished consumer goods less energy..............|  144.6    144.7    146.1    145.9    146.0    146.4
                                                       |
      Finished goods less foods and energy.............|  145.7    145.6    146.6    147.0    147.0    147.2
      Finished consumer goods less foods and energy....|  151.2    151.2    152.6    153.0    153.1    153.2
      Consumer nondurable goods less foods and energy..|  165.9    165.8    167.8    168.1    168.4    168.2
                                                       |
      Intermediate energy goods........................|   85.5     87.6     89.3     89.5     91.1     92.4
      Intermediate materials less energy...............|  131.9    132.3    132.4    132.9    133.0    133.1
      Intermediate materials less foods and energy.....|  133.4    133.7    133.8    134.3    134.4    134.7
                                                       |
      Crude energy materials 2/........................|   80.4     87.3     94.1     89.6     97.5     89.0
      Crude materials less energy......................|  104.8    107.9    109.7    110.4    111.3    110.8
      Crude nonfood materials less energy 3/...........|  134.3    136.9    139.9    143.2    143.7    146.3
_____________________________________________________________________________________________________________

  1/  All seasonally adjusted indexes are subject to change up to 5 years after original publication due
      to the recalculation of seasonal factors each January.  The indexes for August 1999 have been
      recalculated to incorporate late reports and corrections by respondents.  
  2/  Includes crude petroleum.
  3/  Excludes crude petroleum.
Technical Notes





Brief Explanation of
Producer Price Indexes

     Producer price indexes (PPI) measure average changes in
prices received by domestic producers of commodities in all
stages of processing. Most of the information used in
calculating the indexes is obtained through the systematic
sampling of nearly every industry in the manufacturing and
mining sectors of the economy. The PPI program also includes
some information from other sectors--agriculture, fishing,
forestry, services, and gas and electricity. Because
producer price indexes are designed to measure only the
change in prices received for the output of domestic
industries, imports are not included. The sample currently
contains about 3,200 commodities and 80,000 quotations per
month.
     There are three primary systems of indexes within the
PPI program: (1) Stage of processing indexes; (2) commodity
indexes; and (3) indexes for the net output of industries
and their products. The stage-of-processing structure
(tables 1 and 2) organizes products by class of buyer and
degree of processing. The commodity structure (tables 2 and
3) organizes products by similarity of end-use or material
composition. The entire output of various industries is
sampled to derive price indexes for the net output of
industries and their products (table 4).
     Within the stage-of-processing system, finished goods
are commodities that will not undergo further processing and
are ready for sale to the final demand user, either an
individual consumer or business firm. Consumer foods include
unprocessed foods such as eggs and fresh vegetables, as well
as processed foods such as bakery products and meats. Other
finished consumer goods include durable goods such as
automobiles, household furniture, and appliances, and
nondurable goods such as apparel and home heating oil.
Capital equipment includes producer durable goods such as
heavy motor trucks, tractors, and machine tools.
     The stage-of-processing category for intermediate
materials, supplies, and components consists partly of
commodities that have been processed but require further
processing. Examples of such semifinished goods include
flour, cotton yarn, steel mill products, and lumber. The
intermediate goods category also encompasses nondurable,
physically complete items purchased by business firms as
inputs for their operations. Examples include diesel fuel,
belts and belting, paper boxes, and fertilizers.
     Crude materials for further processing are products
entering the market for the first time that have not been
manufactured or fabricated and that are not sold directly to
consumers. Crude foodstuffs and feedstuffs include items
such as grains and livestock. Examples of crude nonfood
materials include raw cotton, crude petroleum, coal, hides
and skins, and iron and steel scrap.
     Producer price indexes for the net output of industries
and their products are grouped according to the Standard
Industrial Classification (SIC) and the Census product code
extension of the SIC. Industry price indexes are compatible
with other economic time series organized by SIC codes, such
as data on employment, wages, and productivity. Table 4
lists indexes for the net output of major mining and
manufacturing industry groups at the 2-digit level.
     Producer price indexes are based on selling prices
reported by establishments of all sizes selected by
probability sampling, with the probability of selection
proportionate to size. Individual items and transaction
terms from these firms are also chosen by probability
proportionate to size. BLS strongly encourages cooperating
companies to supply actual transaction prices at the time of
shipment to minimize the use of list prices. Prices are
normally reported by mail questionnaire for the Tuesday of
the week containing the 13th.
     Price data are provided on a voluntary and confidential
basis; no one but sworn BLS employees are allowed access to
individual company price reports. All producer price indexes
are routinely subject to revision once, 4 months after
original publication, to reflect the availability of late
reports and corrections by respondents.
     Net output values of shipments are used as weights for
industry indexes. Net output values refer to the value of
shipments from establishments in one industry to
establishments classified in another industry. However,
weights for commodity price indexes are based on gross
shipment values, including shipment values between
establishments within the same industry. As a result, broad
commodity grouping indexes such as the all commodities index
are affected by the multiple counting of price change at
successive stages of processing, which can lead to
exaggerated or misleading signals about inflation. Stage-of-
processing indexes partially correct this defect, but
industry indexes consistently correct for this at all levels
of aggregation. Therefore, industry and stage-of-processing
indexes are more appropriate than broad commodity groupings
for economic analysis of general price trends.
     Weights for most traditional commodity groupings of the
PPI, as well as all indexes (such as stage-of-processing
indexes) calculated from traditional commodity groupings,
currently reflect 1987 values of shipments as reported in
the Census of Manufactures and other sources. From January
1987 through December 1991, PPI weights were derived from
1982 shipment values. Industry indexes shown in table 4 are
also now calculated with 1987 net output weights.
     Effective with publication of January 1988 data, many
important PPI series (including stage-of-processing
groupings and most commodity groups and individual items)
were placed on a new reference base, 1982=100, to coincide
with the reference year of the shipment weights. From 1971
through 1987, the standard reference base for most PPI
series was 1967=100. Except for rounding differences, the
shift to the new reference base did not alter any changes to
previously published percent changes for affected PPI
series. (See "Calculating Index Changes," below.) The new
reference base is not used for indexes with a base later
than December 1981, nor for indexes for the net output of
industries and their products.
     For further information on the underlying concepts and
methodology of the Producer Price Index, see chapter 16,
"Producer Prices," in BLS Handbook of Methods (September
1992), Bulletin 2414. Reprints are available from the Bureau
of Labor Statistics on request.

Calculating Index Changes

     Movements of price indexes from one month to another
are usually expressed as percent changes rather than as
changes in index points because index point chances are
affected by the level of the index in relation to its base
period, while percent changes are not. The box shows the
computation of index point and percent changes.
     Percent changes for 3-month and 6-month periods can be
expressed as annual rates that are computed according to the
standard formula for compound growth rates. These data
indicate what the percent change would be if the rate for a
given 3- or 6-month span were maintained for a 12-month
period.





                Index Point Change

     Finished Goods Price Index    107.5
     Less previous index           104.0
     Equals index point change       3.5

          Index Percent Change

     Index point change              3.5
     Divided by the previous index 104.0
     Equals                          0.034
     Result multiplied by 100        0.034 x 100
     Equals percent change           3.4

     Each index measures price changes from a reference
period which equals 100.0 (1982 or some later month). An
increase of 5.5 percent from the reference period in the
Finished Goods Price Index, for example, is shown as 105.5.
This change can also be expressed in dollars as follows:
"Prices received by domestic producers of a systematic
sample of finished goods have risen from $100 in 1982 to
$105.50 to-day." Likewise, a current index of 90.0 would
indicate that prices received by producers of finished goods
today are 10 percent lower than they were in 1982.

Seasonally Adjusted
and Unadjusted Data

     Because price data are used for different purposes by
different groups, the Bureau of Labor Statistics publishes
seasonally adjusted as well as unadjusted changes each
month.
     Seasonally adjusted data are preferred for analyzing
general price trends in the economy because they eliminate
the effect of changes that normally occur at about the same
time and in about the same magnitude every year-such as
price movements resulting from normal weather patterns,
regular production and marketing cycles, model changeovers,
seasonal discounts, and holidays. For these reasons,
seasonally adjusted data more clearly reveal underlying
cyclical trends.
     Unadjusted data are of primary interest to users who
need information which can be related to actual dollar
values of transactions. Individuals requiring this
information include marketing specialists, purchasing
agents, budget and cost analysts, contract specialists, and
commodity traders. It is the unadjusted data that are
generally cited in escalating long-term contracts such as
purchasing agreements or real estate leases. (See Escalation
and Producer Price Indexes: A Guide for Contracting Parties,
BLS Report 807, September 1991, available on request from
BLS.)
     For more information, see "Appendix A: Seasonal
Adjustment Methodology at BLS," in the BLS Handbook of
Methods (September 1992), Bulletin 2414.