FOR DATA ONLY:  (202) 691-5200      USDL 09-0170
FOR TECHNICAL INFORMATION:          TRANSMISSION OF MATERIAL IN
(202) 691-7705                      THIS RELEASE IS EMBARGOED
MEDIA CONTACT:  (202) 691-5902      UNTIL 8:30 A.M. (EST), THURSDAY,
http://www.bls.gov/ppi              FEBRUARY 19, 2009

                             Producer Price Indexes - January 2009

        The Producer Price Index for Finished Goods rose 0.8 percent in January, seasonally 
adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today.  This 
increase followed declines of 1.9 percent in December and 2.5 percent in November.  At the 
earlier stages of processing, the decrease in prices for intermediate materials slowed to 0.7 
percent from 4.2 percent in the prior month, and the index for crude materials declined 2.9 
percent after dropping 5.3 percent in December.  (See table A.)
        
        The upturn in the index for finished goods was led by the index for energy goods, which 
increased 3.7 percent after falling 9.1 percent in December.  Price declines for finished consumer 
foods slowed to 0.4 percent in January from 1.4 percent in the preceding month.  The index for 
finished goods less foods and energy increased 0.4 percent following a 0.2-percent rise a month 
earlier.

        Before seasonal adjustment, the Producer Price Index for Finished Goods increased 0.9 
percent in January to 170.3 (1982 = 100).  From January 2008 to January 2009, the index for 
finished goods moved down 1.0 percent.  Over the same period, prices for finished energy goods 
fell 18.4 percent.  By contrast, partially offsetting the decrease in finished goods prices, the index 
for finished goods less foods and energy rose 4.2 percent and prices for finished consumer foods 
increased 1.8 percent.  For the 12 months ended January 2009, the index for intermediate goods 
decreased 3.5 percent and prices for crude goods dropped 29.1 percent.
        
Finished goods 

	The index for finished energy goods turned up 3.7 percent in January after falling 9.1 
percent a month earlier.  The index for gasoline increased 15.0 percent after dropping 26.2 
percent in the preceding month.  Prices for liquefied petroleum gas, home heating oil, and 
kerosene also turned up after declining in December.  The indexes for diesel fuel and residential 
natural gas fell less than in the prior month.  Conversely, partially offsetting the upturn in 
finished energy goods prices, the rise in the index for residential electric power slowed to 0.3 
percent from 0.5 percent in December.  Prices for asphalt fell more than in the prior month.  (See 
table 2.)

        The decline in the index for finished consumer foods slowed to 0.4 percent in January 
from 1.4 percent in the prior month.  The index for fluid milk products fell 0.6 percent following 
a 5.3-percent decrease in December.  Prices for fresh vegetables (except potatoes), processed 
young chickens, eggs for fresh use, canned carbonated soft drinks, and raspberries turned up 
after declining a month earlier.  Conversely, the index for natural cheese (except cottage cheese) 
dropped 18.6 percent following a 3.4-percent rise in the preceding month.  Prices for pork also 
turned down in January and the index for beef and veal fell more than in December.

	The rise in the index for finished goods less foods and energy accelerated to 0.4 percent 
in January from 0.2 percent in the previous month.  The index for toys, sporting goods, and small 
arms turned up 4.4 percent after falling 0.8 percent in December.  Prices for communication and 
related equipment, alcoholic beverages, and commercial furniture also increased after declining 
in the prior month.  The index for consumer plastic products fell less in January, and prices for 
office and store machines and equipment rose after no change in December.  By contrast, the 
advance in the index for passenger cars slowed to 0.3 percent from 1.5 percent in the prior 
month.  Prices for soap and synthetic detergents turned down after rising in December.

Intermediate goods

	The Producer Price Index for Intermediate Materials, Supplies, and Components fell 0.7 
percent in January following a 4.2-percent decrease in December.  Prices for materials for 
durable manufacturing, intermediate foods and feeds, and materials and components for 
construction all declined less than they had a month earlier, while the indexes for intermediate 
energy goods and materials for nondurable manufacturing turned up in January.  Excluding foods 
and energy, prices for intermediate goods moved down 1.1 percent compared with a 2.9-percent 
decrease in the prior month.  (See table B.)

	The index for materials for durable manufacturing moved down 3.5 percent in January 
following a 7.2-percent decrease in December.  Prices for hot rolled steel sheet and strip fell 6.8 
percent after dropping 23.9 percent in the prior month.  Similarly, the indexes for cold rolled 
steel sheet and strip; hot rolled steel bars, plates, and structural shapes; copper and brass mill 
shapes; primary nonferrous metals; and thermoplastic resins and plastic materials also decreased 
less than a month earlier.  Prices for cold finished steel bars turned up in January.  By contrast, 
partially offsetting the slower rate of decline in prices for materials for durable manufacturing, 
the index for semifinished steel mill products moved down 13.8 percent subsequent to a 7.6-
percent decrease in December.  Prices for steel pipe and tube and for aluminum mill shapes also 
fell more in January than they had in the preceding month.  (See table 2.)

	The index for intermediate energy goods rose 1.5 percent in January after falling 9.8 
percent a month earlier.  Prices for liquefied petroleum gas climbed 20.2 percent compared with 
a 21.8-percent decrease in December.  The indexes for gasoline, heating oil, and residual fuels 
also turned up in January.  Prices for both diesel and jet fuel declined less than they had in 
December.  By contrast, the electric power index fell 0.9 percent after advancing 0.6 percent in 
the prior month.  Prices for natural gas to electric utilities and commercial natural gas also turned 
down in January.  

	The index for materials for nondurable manufacturing edged up 0.1 percent in January 
after decreasing 9.1 percent in December.  Leading this upturn, prices for basic organic 
chemicals rose 0.7 percent in January following a 17.8-percent drop a month earlier.  The 
indexes for medicinal and botanical chemicals and for finished fabrics also turned up after falling 
in December.  Prices for thermoplastic resins and plastic materials and for inedible fats and oils 
declined less in January than they had in the prior month.  By contrast, the index for agricultural 
chemicals and chemical products moved down 14.5 percent subsequent to an 8.2-percent 
decrease in December.  Prices for synthetic rubber also fell more than they had in the previous 
month.  The index for knit gray fabrics rose less than a month earlier.

	The intermediate foods and feeds index moved down 2.2 percent following a 3.3-percent 
decline in December.  In January, falling prices for natural cheese (except cottage cheese), beef 
and veal, processed cheese and related products, fats and oils, processed eggs, bulk fluid milk 
and cream, and pork outweighed rising prices for processed young chickens.

	The index for materials and components for construction moved down 0.7 percent after 
falling 1.2 percent in December.  Prices for paving mixtures and blocks declined 6.2 percent in 
January subsequent to an 8.3-percent drop a month earlier.  The index for sheet metal products 
also decreased less than in the prior month.  The indexes for plastic construction products and for 
prefabricated wood buildings and components advanced after falling in December.  Prices for 
ready-mixed concrete rose more than they had in the previous month.  Conversely, the index for 
structural, architectural, and pre-engineered metal products decreased 2.6 percent compared with 
a 1.1-percent decline in December.  Prices for treated wood products turned down in January, 
and the index for prepared paint rose less than in the preceding month.

Crude goods

	The Producer Price Index for Crude Materials for Further Processing fell 2.9 percent in 
January following a 5.3-percent decline in December.  In January, lower prices for crude energy 
materials outweighed higher prices for crude foodstuffs and feedstuffs and for crude nonfood 
materials less energy.  (See table B.)

        The index for crude energy materials decreased 8.1 percent in January after falling 5.9 
percent in the previous month.  Natural gas prices dropped 7.8 percent compared with a 14.7-
percent increase in the preceding month.  The coal index turned down 2.0 percent following a 
0.5-percent gain in December.  By contrast, partially offsetting the faster rate of decline in the 
crude energy materials index, prices for crude petroleum declined 12.5 percent in January after 
falling 31.0 percent a month earlier.  (See table 2.)
        
	The index for crude foodstuffs and feedstuffs advanced 1.0 percent following a 5.5-
percent decrease in December.  Slaughter cattle prices rose 1.1 percent in January subsequent to 
an 8.9-percent decline in the prior month.  The indexes for corn, soybeans, and fresh vegetables 
(except potatoes) also turned up in January.  Prices for slaughter barrows and gilts rose more 
than in December.  By contrast, prices for slaughter chickens fell 7.2 percent following a 6.9-
percent increase a month earlier.  The indexes for Irish potatoes for processing and tree nuts also 
turned down after rising in December.  Fluid milk prices decreased more than they had in the 
previous month.

        The index for crude nonfood materials less energy edged up 0.1 percent in January 
subsequent to a 2.2-percent decline in December.  The increase in iron and steel scrap prices 
accelerated to 21.9 percent from 13.8 percent in the preceding month.  The index for gold ores 
also advanced more than it had a month earlier.  Prices for corn, wheat, and soybeans for 
nonfood manufacturing turned up in January.  By contrast, the index for hides and skins dropped 
36.0 percent in January after decreasing 7.5 percent in December.  Prices for raw cotton and for 
construction sand, gravel, and crushed stone turned down in January.  The index for aluminum 
base scrap fell more than it had in December. 

Net output price indexes

Mining, Utilities, and Manufacturing Industries.  The Producer Price Index for the Net Output 
of Total Mining, Utilities, and Manufacturing Industries inched up 0.1 percent in January 
following a 2.8-percent decrease in December.  (Net output price indexes are not seasonally 
adjusted.)  Most of this upturn can be traced to prices received by petroleum refineries, which 
advanced 8.1 percent in January after falling 26.4 percent in the prior month.  The industry 
indexes for poultry processing and farm-feed manufacturing also increased following December 
declines.  Prices received by petrochemical manufacturers decreased less in January than they 
had a month earlier, and the industry index for soft drink manufacturing climbed more than in 
December.  By contrast, partially offsetting the upturn in the index for total mining, utilities, and 
manufacturing industries, prices received by cheese manufacturers fell 14.8 percent in January 
after rising 2.4 percent in the preceding month.  The indexes for livestock slaughtering and for 
electric power generation, transmission, and distribution decreased more than they had in 
December.  Prices received by pharmaceutical preparation manufacturers rose less than in the 
preceding month.  In January, the index for total mining, utilities, and manufacturing industries 
was 105.2 (December 2006 = 100), 1.9 percent below its year-ago level.

Trade Industries.  The Producer Price Index for the Net Output of Total Trade Industries 
declined 0.3 percent in January following a 0.5-percent advance in the preceding month.  (Trade 
indexes measure changes in margins received by wholesalers and retailers.)  Leading this 
downturn, margins received by merchant wholesalers of nondurable goods fell 2.3 percent after 
rising 4.6 percent in December.  The margin indexes for department stores, gasoline stations with 
convenience stores, and fuel dealers also decreased following increases in the prior month.  
Conversely, margins received by gasoline stations without convenience stores jumped 10.3 
percent following a 21.0-percent decrease in the prior month.  The margin indexes for home 
centers, electronic shopping and mail-order houses, supermarkets, and new car dealers also 
turned up in January after falling in December.  Margins received by merchant wholesalers of 
durable goods rose more than they had in the previous month.  In January, the index for total 
trade industries was 110.8 (December 2006 = 100), 5.3 percent above its year-ago level.

Transportation and Warehousing Industries.  The Producer Price Index for the Net Output of 
Total Transportation and Warehousing Industries declined 0.8 percent in January following a 
2.8-percent drop in December.  Prices received by the air transportation industry group edged 
down 0.1 percent in January after falling 4.2 percent in the preceding month.  The index for 
couriers and messengers also decreased less than it had in December.  Prices received by the 
general freight trucking industry group and by the inland water freight transportation industry 
turned up in January.  By contrast, the index for the line-haul railroad industry moved down 4.3 
percent following a 2.5-percent decline in December.  Prices received by the industry for local 
specialized freight trucking of new goods also decreased more in January than in the previous 
month.  The indexes for deep sea freight transportation and freight transportation arrangement 
fell after no change in December.  In January, the index for total transportation and warehousing 
industries was 108.6 (December 2006 = 100), 0.3 percent above its year-ago level.

Total Traditional Service Industries.  The Producer Price Index for the Net Output of Total 
Traditional Service Industries advanced 0.4 percent in January following a 0.8-percent decline in 
December.  Prices received by the industry for investment banking and securities dealing 
increased 7.0 percent after falling 2.0 percent a month earlier.  The indexes for automotive 
equipment rental and leasing, software publishers, and offices of lawyers also turned up in 
January.  Prices received by the depository credit intermediation industry group were unchanged 
following decreases in December.  The index for direct health and medical insurance carriers 
rose more in January than it had in the prior month.  Conversely, prices received by real estate 
agents and brokers fell 4.5 percent in January after declining 0.6 percent in December.  Prices 
received by the industries for temporary help services moved down in January after rising in 
December.  In January, the index for total traditional service industries was 102.3 (December 
2006 = 100), unchanged from its year-ago level.


                                            *****

Producer Price Index data for February 2009 are scheduled to be released on Tuesday, March 17, 
2009 at 8:30 a.m. (EDT).

                                            *****

           PPI Commodity Weight Allocations to Stage-of-Processing Indexes Updated

	Effective with the release of January 2009 data on February 19, 2009, the Bureau of 
Labor Statistics updated the weight allocations used to calculate its stage-of-processing (SOP) 
indexes to more accurately reflect recent sales patterns.  While PPI weights continue to be based 
on shipment values from the 2002 economic census, the proportion of these weights allocated to 
the various SOP categories within and, in some cases, across the Finished, Intermediate, and 
Crude goods stages have changed.  The new allocations are based primarily on data contained in 
the 2002 Input/Output Accounts published by the Bureau of Economic Analysis.

	It is important to note that the allocation update does not change the PPI classification 
system, reference base, or aggregation structure.  It has, however, resulted in significant shifts in 
the relative importance of some component series in the stage-of-processing model.  A detailed 
explanation of the SOP allocation update is available on the BLS Web site at:  
http://www.bls.gov/ppi/ppisopallo.htm.

	Relative importance figures as of December 2008, are available on the BLS Web site 
at:  www.bls.gov/ppi.  Choose the "PPI Tables" link, under the "On This Page" heading.  The 
revised SOP relative importance figures will be available through the links:  "Component series 
by stage of processing" and "Commodity groupings by major stage of processing category."  The 
information may also be requested from the Division of Industrial Prices and Price Indexes, 
Section of Index Analysis and Public Information, at 202-691-7705.  For further information on 
this change, please contact Jon Weinhagen at (202) 691-7709.

                                             *****

                                    Resampling of Industries

	Effective with this release, the Producer Price Index (PPI) includes data for 42 resampled 
industries classified according to the North American Industry Classification System (NAICS).  
The Bureau of Labor Statistics periodically updates the sample of producers providing data for 
the PPI to reflect current conditions more accurately when the structure, membership, 
technology, or product mix of an industry shifts.  The first results of this systematic process were 
published in July 1986.  Subsequent efforts have been completed at 6-month intervals.  
        
        For information on specific index additions, deletions, and recodes that are effective with 
this semiannual update, see the January 2009 issue of the PPI Detailed Report online at 
http://www.bls.gov/ppi/ppidr200901.pdf, or contact the Division of Industrial Prices and Price 
Indexes, Section of Index Analysis and Public Information at ppi-info@bls.gov or (202) 691-
7705.

NAICS
Code                    Industry

236221        New warehouse building construction
311312        Cane sugar refining
311313        Beet sugar manufacturing
311421        Fruit and vegetable canning
311514        Dry, condensed, and evaporated dairy products
311830        Tortilla manufacturing
312112        Bottled water manufacturing
313221        Narrow fabric mills
315222        Men's and boys' suit, coat, and overcoat manufacturing
321999        Miscellaneous wood product manufacturing
322211        Corrugated and solid fiber box manufacturing
322225        Flexible packaging foil manufacturing
323111        Commercial gravure printing
323114        Quick printing
325131        Inorganic dye and pigment manufacturing
325188        All other basic inorganic chemical manufacturing
325199        All other basic organic chemical manufacturing
331522        Nonferrous, except Al, die-casting foundries
331525        Copper foundries, except die-casting
332323        Ornamental and architectural metal work manufacturing
333220        Plastics and rubber industry machinery
333298        All other industrial machinery manufacturing
335221        Household cooking appliance manufacturing
335222        Household refrigerator and home freezer manufacturing
335224        Household laundry equipment manufacturing
336211        Motor vehicle body manufacturing
339913        Jewelers' material and lapidary work manufacturing
339950        Sign manufacturing
441310        Automotive parts and accessories stores
443112        Radio, TV, and other electronics stores
452111        Department stores, except discount
452112        Discount department stores
452900        Other general merchandise stores
453210        Office supplies and stationery stores
484210        Used household and office goods moving
484220        Other specialized trucking, local
484230        Other specialized trucking, long-distance
488330        Navigational services to shipping
488510        Freight transportation arrangement
541211        Offices of certified public accountants
541810        Advertising agencies
561330        Professional employer organizations

 
                                                *****

                              Recalculation of Seasonal Adjustment Factors

        Effective with this release, seasonal adjustment factors have been recalculated to reflect 
price-movement patterns during 2008 for stage-of-processing (SOP) and commodity-grouping 
indexes.  This routine annual recalculation may affect previously published seasonally adjusted 
indexes and percent changes for January 2004 through December 2008.  Revised seasonally 
adjusted data for this period, as well as seasonal adjustment factors for commodity indexes to be 
used through December 2009, were released February 17, 2009.  To obtain this information, 
contact the Division of Industrial Prices and Price Indexes, Section of Index Analysis and Public 
Information at ppi-info@bls.gov or (202) 691-7705, or visit the Producer Price Index homepage 
at www.bls.gov/ppi.

	The table below provides monthly seasonally adjusted percent changes for the three 
major SOP categories during 2008, based on former and recalculated seasonal factors.  These 
percent changes include final price data through August 2008 and may differ from values shown 
in tables A and B of this release, which include final price data through September 2008.

Over-the-month percent changes in major stage-of-processing indexes, seasonally 
adjusted, using former and recalculated seasonal factors for 2008


               Finished Goods       Intermediate Goods      Crude Goods     
Month         Former  Recalculated  Former  Recalculated  Former  Recalculated
 

January         1.2        0.9        1.2        1.1        2.9        2.8
February        0.3        0.4        0.9        1.0        3.9        3.9
March           0.9        0.9        2.4        2.2        6.7        6.6
April           0.3        0.2        1.0        1.0        4.7        4.7
May             1.4        1.5        2.7        2.5        6.1        6.0
June            1.7        1.3        2.2        2.0        2.8        2.7
July            1.2        1.3        2.7        2.8        4.0        3.9
August         -0.9       -0.5       -1.5       -1.3      -12.3      -12.0
September      -0.4       -0.2       -0.9       -0.5       -6.0       -6.0
October        -2.8       -2.6       -3.9       -3.9      -18.6      -18.4
November       -2.2       -2.5       -4.3       -4.3      -12.5      -12.6
December       -1.9       -1.9       -4.2       -4.2       -5.3       -5.3

Technical Note

               Brief Explanation of Producer Price Indexes

     The Producer Price Index (PPI) of the Bureau of Labor Statistics (BLS)
is a family of indexes that measure the average change over time in the
prices received by domestic producers of goods and services.  PPIs measure
price change from the perspective of the seller.  This contrasts with other
measures, such as the Consumer Price Index (CPI).  CPIs measure price
change from the purchaser's perspective.  Sellers' and purchasers' prices
can differ due to government subsidies, sales and excise taxes, and
distribution costs.

     More than 8,000 PPIs for individual products and groups of products
are released each month.  PPIs are available for the products of virtually
every industry in the mining and manufacturing sectors of the U.S. economy.
New PPIs are gradually being introduced for the products of industries in
the construction, trade, finance, and services sectors of the economy.

     More than 100,000 price quotations per month are organized into three
sets of PPIs:  (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 organizes products by class of buyer and degree of
fabrication.  The commodity structure 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.
     
                        Stage-of-Processing Indexes
                                     
     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, as well as nondurable goods such as
apparel and home heating oil.  Capital equipment includes 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.
                                     
                             Commodity Indexes

     The commodity classification structure of the PPI organizes products
by similarity of end use or material composition, disregarding industry of
origin.  Fifteen major commodity groupings (two-digit commodity codes) make
up the All Commodities Index. Each major commodity grouping includes (in
descending order of aggregation) subgroups (three-digit codes), product
classes (four-digit codes), subproduct classes (six-digit codes), item 
groupings (seven-digit codes) and individual items (eight-digit codes).  
                                     
                     Industry Net-Output Price Indexes
                                     
     PPIs for the net output of industries and their products are grouped
according to the North American Industry Classification System (NAICS).
Prior to the release of January 2004, industry-based PPIs were published
according to the Standard Industrial Classification (SIC) system.  Industry
price indexes are compatible with other economic time series organized by
industry, such as data on employment, wages, and productivity.  Table 5 of
the PPI Detailed Report includes data for NAICS industries and industry
groups (3-, 4-, 5-, and 6-digit codes); Census product classes (7- and 8-
digit codes), products (9-digit codes), and more detailed subproducts (11-
digit codes); and, for some industries, indexes for other sources of
revenue.

     Indexes may represent one of three kinds of product categories.  Every
industry has primary product indexes to show changes in prices received by
establishments classified in the industry for products made primarily, but
not necessarily exclusively, by that industry.  The industry classification
of an establishment is determined by which products make up a plurality of
its total shipment value.  In addition, most industries have secondary
product indexes that show changes in prices received by establishments
classified in the industry for products chiefly made in some other
industry.  Finally, some industries have miscellaneous receipts indexes to
show price changes in other sources of revenue received by establishments
within the industry that are not derived from sales of their products-for
example, resales of purchased materials, or revenues from parking lots
owned by a manufacturing plant.
                                     
                              Data Collection
                                     
     PPIs 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 also are 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 submitted by
survey respondents are effective on the Tuesday of the week containing the
13th day of the month.  This survey is conducted primarily through the
mail.

     Price data are provided on a voluntary and confidential basis; only
sworn BLS employees are allowed access to individual company price reports.
BLS publishes price indexes instead of actual prices.  All PPIs are subject
to revision 4 months after original publication to reflect the availability
of late reports and corrections by respondents.

     BLS periodically updates the PPI sample of survey respondents to
better reflect current conditions when the structure, membership,
technology, or product mix of an industry shifts significantly and to
spread reporting burden among smaller firms.  Results of these resampling
efforts are incorporated into the PPI with the release of data for January
and July.

     As part of an ongoing effort to expand coverage to sectors of the
economy other than mining and manufacturing, an increasing number of
service sector industries have been introduced into the PPI.  The following
list of recently introduced industries includes the month and year in which
an article describing the industry's content appeared in the PPI Detailed
Report.

                                                                      PPI
                                                                      Detailed
                                                                      Report
              Title                                           Code    Issue

                                                              SIC             
Wireless telecommunications...................................4812    July 1999
Telephone communications, except radio telephone..............4813    July 1995
Television broadcasting.......................................4833    July 2002
Grocery stores................................................5411    July 2000
Meat and fish (seafood) markets...............................5421    July 2000
Fruit and vegetable markets...................................5431    July 2000
Candy, nut, and confectionery stores..........................5441    July 2000
Retail bakeries...............................................5461    July 2000
Miscellaneous food stores.....................................5499    July 2000
New car dealers...............................................5511    July 2000
Gasoline service stations.....................................5541    January 2002
Boat dealers..................................................5551    January 2002
Recreational vehicle dealers..................................5561    January 2002
Miscellaneous retail..........................................59      January 2001
Security brokers, dealers, and investment bankers.............6211    January 2001
Investment advice.............................................6282    January 2003
Life insurance carriers.......................................6311    January 1999
Property and casualty insurance...............................6331    July 1998
Insurance agencies and brokerages.............................6412    January 2003
Operators and lessors of nonresidential buildings.............6512    January 1996
Real estate agents and managers...............................6531    January 1996
Prepackaged software..........................................7372    January 1998
Data processing services......................................7374    January 2002
Home health care services.....................................8082    January 1997
Legal services................................................8111    January 1997
Engineering design, analysis, and consulting services.........8711    January 1997
Architectural design, analysis, and consulting services.......8712    January 1997
Premiums for property and casualty insurance..................9331    July 1998
                                                         
                                                              NAICS            
New industrial building construction..........................236211  January 2008
New warehouse building construction...........................236221  July 2005
New school construction.......................................236222  July 2006
New office construction.......................................236223  January 2007
Concrete contractors, nonresidential building work............23811X  July 2008
Roofing contractors, nonresidential building work.............23816X  July 2008
Electrical contractors, nonresidential building work..........23821X  July 2008
Plumbing / HVAC contractors, nonresidential building work.....23822X  July 2008
Merchant wholesalers, durable goods...........................423     July 2005
Merchant wholesalers, nondurable goods........................424     July 2005
Wholesale trade agents and brokers............................425120  July 2005
Furniture and home furnishings stores.........................442     January 2004
Electronics and appliance stores..............................443     January 2004
Building  material and garden equipment and supplies dealers..444     January 2004
Clothing and clothing accessories stores......................448     January 2004
Sporting goods, hobby, book, and music stores.................451     January 2004
General merchandise stores....................................452     January 2004
Miscellaneous store retailers.................................453     January 2004
Internet service providers....................................518111  July 2005
Web search portals............................................518112  July 2005
Commercial banking............................................522110  January 2005
Savings institutions..........................................522120  January 2005
Direct health and medical insurance carriers..................524114  July 2004
Construction, mining, and forestry machinery and equipment 
rental and leasing............................................532412  January 2005
Management consulting services................................541610  January 2007
Security guards and patrol services...........................561612  July 2005
Computer training.............................................611420  July 2007
Blood and organ banks.........................................621991  January 2007
Amusement and theme parks.....................................713110  July 2006
Golf courses and country clubs................................713910  July 2006
Fitness and recreational sports centers.......................713940  July 2005
Commercial machinery repair and maintenance...................811310  July 2007
                                     
                                  Weights

     Weights for most traditional commodity groupings of the PPI, as well
as weights for commodity-based aggregate indexes calculated using traditional 
commodity groupings, such as stage-of-processing indexes, currently reflect
2002 values of shipments as reported in the Census of Manufactures and 
other sources. From January 2002 through December 2006, PPI weights were 
derived from 1997 shipment values.  Industry indexes now are calculated 
with 2002 weights and 1997 net output ratios.  This periodic update of
the value weights used to calculate the PPI is done to more accurately
reflect changes in production and marketing patterns in the economy.  Net
output values of shipments are used as weights for industry indexes.  Net
output values refer to the value of shipments from establishments within
the industry to buyers outside the industry.  However, weights for
commodity price indexes are based on gross shipment values, including
values of shipments between establishments within the same industry.  As a
result, broad commodity grouping indexes, such as the PPI for All
Commodities, 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 for 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.
     
                        Price Index Reference Base
                                     
     Effective with publication of January 1988 data, many important PPI
series (including stage-of-processing groupings and most commodity groups
and individual items) were placed on a new reference base, 1982 = 100.
From 1971 through 1987, the standard reference base for most PPI series was
1967 = 100.  Except for rounding differences, the shift to the new
reference base did not alter any previously published percent changes for
affected PPI series.  (See "Calculating Index Changes," below.)  The 1982
reference base is not used for commodity indexes with a base later than
December 1981 or for industry net output indexes and their products.

     For further information on the underlying concepts and methodology of
the Producer Price Index, see chapter 14, "Producer Prices," in BLS
Handbook of Methods (April  1997), Bulletin 2490.  This document can be
downloaded from the BLS Web site at (www.bls.gov/opub/hom/homch14_itc.htm).
Reprints are available on request.

                         Calculating Index Changes
                                     
     Each PPI measures price changes from a reference period that equals
100.0.  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
also can be expressed in dollars, as follows:  prices received by domestic
producers of a sample of finished goods have risen from $100 in 1982 to
$105.50.  Likewise, a current index of 90.0 would indicate that prices
received by producers of finished goods are 10 percent lower than they were
in 1982.

     Movements of price indexes from one month to another are usually
expressed as percent changes, rather than as changes in index points.
Index point changes are affected by the level of the index in relation to
its base period, whereas percent changes are not.  The following example
shows the computation of index point and percent changes.
     
          Index point change
     Finished Goods Price Index        107.5
     Less previous index               104.0
     Equals index point change           3.5

          Index percent change
     Index point change 3.5
     Divided by the previous index     104.0
     Equals                              0.034
     Result multiplied by 100            0.034 x 100
     Equals percent change               3.4


                  Seasonally Adjusted and Unadjusted Data

     Because price data are used for different purposes by different
groups, BLS publishes seasonally adjusted and unadjusted changes each
month.  Seasonally adjusted data are preferred for analyzing general price
trends in the economy because these data eliminate the effect of changes
that normally occur at about the same time, and in about the same
magnitude, every year-such as price movements resulting from normal weather
patterns, regular production and marketing cycles, model changeovers,
seasonal discounts, and holidays.  For these reasons, seasonally adjusted
data more clearly reveal underlying cyclical trends.  Unadjusted data are
of primary interest to users who need information that can be related to
actual dollar values of transactions.  Individuals requiring this
information include marketing specialists, purchasing agents, budget and
cost analysts, contract specialists, and commodity traders.  It is the
unadjusted data that are generally cited when escalating long-term
contracts such as purchasing agreements or real estate leases.  For more
information, see Escalation and Producer Price Indexes: A Guide for
Contracting Parties, BLS Report 807, September 1991, on the Web at
(www.bls.gov/ppi/ppiescalation.htm).  Reprints are available on request.

     In 1998, the PPI implemented the X-12-ARIMA Seasonal Adjustment
Method; prior to that year, the PPI employed the X-11 method.  Each year,
the seasonal status of most commodity indexes is reevaluated to reflect
more recent price behavior.  Industry net output indexes are not seasonally
adjusted.  For time series that exhibit seasonal pricing patterns, new
seasonal factors are estimated and applied to the unadjusted data for the
previous 5 years.  These updated seasonally adjusted indexes replace the
most recent 5 years of seasonal data.

     Seasonal factors may be applied to series using either a direct or an
aggregative method.  Generally, commodity indexes are seasonally adjusted
using direct seasonal adjustment, which produces a more complete
elimination of seasonal movements than does the aggregative method.
However, the direct seasonal adjustment process may not yield figures that
possess additive consistency.  Thus, a seasonally adjusted index for a
broad category that is directly adjusted may not be logically consistent
with all seasonally adjusted indexes for its components.  Seasonal
movements for stage-of-processing indexes are derived indirectly through an
aggregative method that combines movements of a wide variety of subproduct
class (six-digit) series.

     Seasonally adjusted indexes can become problematic when previously
stable and predictable price patterns abruptly change.  If the new pattern
persists, the seasonal adjustment method will eventually reflect it
adequately; if the pattern keeps shifting, however, seasonally adjusted
data will become chronically troublesome.  This problem occurs relatively
infrequently for farm and food-related products, but has more often
affected manufactured products such as automobiles and steel.

     Since January 1988, the PPI has used Intervention Analysis Seasonal
Adjustment methods to enhance the calculation of seasonal factors.  With
this technique, outlier values that may distort the seasonal pattern are
removed from the data prior to applying the standard seasonal factor
estimation procedure.  For example, a possible economic cause for large
price movements for petroleum-based products might have been the Persian
Gulf War.  In this case, intervention techniques allowed for better
estimates of seasonally adjusted data.  On the whole, very few series have
required intervention.  Out of nearly 800 seasonally adjusted series, only
16 were subject to intervention in 2008.

     For more information relating to seasonal adjustment methods, see (1)
"Appendix A: Seasonal Adjustment Methodology at BLS," in the BLS Handbook
of Methods (April 1997), Bulletin 2490 and (2) "Summary of Changes to the
PPI's Seasonal Adjustment Methodology" in the January 1995 issue of
Producer Price Indexes.

                 Producer Price Index Data on the Internet

     In 1995, the BLS began posting PPI series, news releases, and
technical information to both a World Wide Web (WWW) site and a file
transfer protocol (FTP) site.  During the years following the introduction
of PPI Internet services, use of these sites eclipsed more traditional
methods of data dissemination, such as subscriptions to the PPI Detailed
Report.  There were more than 2.1 million instances of PPI series being
downloaded from the Internet during the 12 months ended December 31, 2007.

                 Retrieving PPI data from the PPI Web site
                                     
     PPI data can be obtained from the WWW address (www.bls.gov/ppi).
Clicking on the "PPI Databases" link reveals the following methods of data 
retrieval:
     
     Top picks is a form-based application for both industry Data and 
Commodity Data that allows the user to quickly obtain PPI time series data 
by selecting the most commonly requested time series, including the All 
Commodities Index and the stage-of-processing indexes (for example, Finished 
Goods).  Within each list, any one-or all-of the time series shown can be 
selected.  A user can modify the date range and output options after executing 
the query, using the reformat button above the data output table.

     One-Screen Data Search and Multi-Screen Data Search are form-based query 
applications for both Industry Data and Commodity Data designed for users 
unfamiliar with the PPI coding structure.  These applications guide a user 
through the PPI classification system by listing index titles and does not 
require knowledge of commodity or industry codes.  Data retrieved are based on 
a query formulated by selecting data characteristics from lists provided.  Two 
options are available to create customized tables, depending on a user's browser 
capability.  The one-screen option is a JavaScript application that uses a 
single screen to guide a user through the available time series data.  The 
second option is a multiple-screen, non-Java-based application.  Both methods 
allow a user to browse the PPI coding structure and select multiple series codes.  
Using the one-screen option, users can modify the date range and output options 
after executing the query using the reformat button above the data output table.

     Series Report is a form-based application that uses formatted PPI time
series identifiers (commodity or industry codes) as input in extracting
data according to a specified set of date ranges and output options.  This
application provides the most efficient path for users who are familiar
with the format of PPI time series identifiers.  Up to 300 indexes can be
extracted at a time.

     There are five alphabetic prefixes used to create unique PPI time
series identifiers:  WP, WD, PC, PD, and ND.  Each provides the user access
to a different PPI database.  Adding either a "u" (not seasonally adjusted)
or an "s" (seasonally adjusted) to the end of these prefixes further
specifies the type of data needed.

     For commodity and stage-of-processing indexes, series identifiers
combine a "wpu" prefix (not seasonally adjusted) or a "wps" prefix
(seasonally adjusted) with a commodity code.
  
Commodity code            Provides data for:
wps141101                 Passenger cars, seasonally adjusted
wpu141101                 Passenger cars, not seasonally adjusted
wpusop3000                Finished goods, not seasonally adjusted
     
     For discontinued commodity indexes, series identifiers combine a "wdu"
prefix (not seasonally adjusted) or a "wds" prefix (seasonally adjusted)
with a commodity code.
     
Commodity code            Provides data for:
wds019                    Other farm products, seasonally adjusted
wdu0635                   Preparations, ethical (prescription), not seasonally
                          adjusted
wdusi138011               Stainless steel mill products, not seasonally adjusted
     
     Current price indexes grouped by industry according to NAICS have series 
identifiers that begin with the prefix "pcu." After the prefix, there are 12 
digits (the 6-digit industry code is listed twice) followed by up to 7 
alphanumeric characters identifying product detail.  Dashes are used as 
placeholders for higher-level industry group codes.

Industry-product code,
current NAICS series       Provides data for:
pcu325---325---            Chemical manufacturing, not seasonally
                           adjusted
pcu336110336110            Automobile and light duty motor vehicle
                           manufacturing
pcu621111621111411         Offices of physicians, one- and two-physician practices and
                           single-specialty group practices, general/family practice
pcu325412325412A           Pharmaceutical preparation manufacturing, pharmaceuticals 
                           acting on the respiratory system                    
  
     Discontinued industry-product codes based on SIC combine a "pdu"
prefix and "#" between the fourth and fifth characters of the product code.
Series identifiers for the discontinued dataset use underscores as
placeholders to complete a reference to an SIC industry group code of fewer
than four digits.  (All PPI industry-based indexes organized by SIC were
discontinued with the introduction of NAICS.)
  
Industry-product code,
discontinued SIC series    Provides data for:
pdu28__#                   Chemicals and allied products, not seasonally adjusted
pdu331_#                   Blast furnaces, steel works, and rolling and
                           finishing mills, not seasonally adjusted
pdu3711#111                Passenger cars
  
     Price indexes for discontinued series grouped by industry according to
NAICS have series identifiers that begin with the prefix "ndu." After the
prefix, there are 12 numeric digits (the 6-digit industry code is listed
twice), and up to 7 additional alphanumeric characters that identify
product detail.  Dashes are used as placeholders for higher-level industry
group codes.
  
Industry-product code,
discontinued NAICS series  Provides data for:
ndu212231212231            Lead ore and zinc ore mining
ndu2122312122312           Lead and zinc concentrates
ndu212231212231214         Lead concentrates

     Text Files (FTP) and the FTP server are best suited for users requiring
access to either a large volume of time series data or other PPI-related
documentation (such as seasonal factor and relative importance tables).
The FTP site can be accessed at ftp://ftp.bls.gov or directly from the
links on the "PPI Databases" page or the PPI homepage.  Data and
documentation available for download include the following:

                                      Directory:
Industry Data                         /pub/time.series/pc
Industry Data - Discontinued           
		      NAICS basis		  /pub/time.series/nd
		      SIC basis           /pub/time.series/pd
Commodity Data                        /pub/time.series/wp
Commodity Data, Discontinued        
                Series                /pub/time.series/wd
Special requests                      /pub/special.requests/ppi
Latest news release                   /pub/news.release/ppi.txt

     The FTP site maintains files to help with searches and downloads.
These files are centrally located in the /pub/doc directory.  Within this
directory, the overview.txt file contains an overview relating to all BLS
data available through the FTP site.  For current commodity-based PPI data,
the program help file is wp.txt; for discontinued commodity series, wd.txt;
for current industry-based PPI data based on NAICS, pc.txt; for industry-
based SIC time series that have been discontinued, pd.txt; and for industry-
based NAICS series that have been discontinued, nd.txt.
      
     Users who prefer downloading PPI datasets as individual ZIP files
should go to the directory labeled /pub/time.series/compressed/tape.format/
on the FTP site.  This directory includes six PPI-specific ZIP files, one
for each of the PPI databases-WP, WD, PC, ND, and PD-and a ZIP file for the
annual 5-year revision to historical seasonal PPIs.
                                     
                         Other Sources of PPI Data

     PPI data can also be accessed via the BLS homepage (www.bls.gov).
Clicking on the "Get Detailed Statistics" link at the top of the homepage
calls up a chart listing all available BLS programs.  

                          Additional information

     The PPI homepage (www.bls.gov/ppi) contains additional information
regarding PPI data and methodology.  The top section of the homepage
provides PPI news releases, both current and archived, as well as general
PPI information.  The "Tables Created by BLS" section found beneath the
statistics section provides relative importance and seasonal factor tables.
The remaining sections offer special notices and publications pertaining to
PPI methodology and applications.
     
     For questions or comments regarding PPI data classification,
methodology, or data availability on the Internet, call or e-mail the
Section of Index Analysis and Public Information at (202) 691-7705 or ppi-
info@bls.gov.