The Producer Price Index for Finished Goods decreased 0.1 percent in July, seasonally adjusted, the Bureau of Labor Statistics of the U. S. Department of Labor reported today. This followed drops of 0.1 percent in June and 0.3 percent in May and is the seventh consecutive monthly decline in the index. Prices received by domestic producers of intermediate goods decreased in July after showing no change in the previous month. The Crude Goods Price Index fell 0.1 percent after declining 3.3 percent in June.

Among finished goods in July, price decreases for finished consumer goods other than foods and energy, finished consumer foods, and capital equipment outweighed increases for finished energy goods. The index for finished goods other than foods and energy turned down 0.1 percent following a 0.1-percent rise in June.

			Jul 97	Jun 97	May 97	Jul 96
Finished Goods
 Total			—0.1	—0.1	—0.3	 0.0
 Foods			—0.2	—0.9	 0.4	 0.1
 Energy			 0.1	 0.7	—2.1	 0.4
 Ex Food & Energy	—0.1	 0.1	—0.3	 0.0
 Change from 12 mos ago	—0.2	—0.1	 0.3	 2.6

Intermediate Goods
 Total			—0.2	—0.1	 0.3	—0.2
 Foods			—1.2	—1.4	 0.5	 0.4
 Energy			—1.1	 0.6	—1.9	 0.0
 Ex Food & Energy	 0.0	 0.1	 0.0	—0.3
 Change from 12 mos ago	—0.3	—0.4	—0.7	 1.7

Crude Goods
 Total			—0.1	—3.3	 1.3	 2.2
 Foods			 0.3	—5.4	—0.3	 1.7
 Energy			—0.4	—2.9	 3.4	 5.4
 Ex Food & Energy	—0.5	 0.4	 1.2	—1.6
 Change from 12 mos ago	—7.3	—5.4	—4.6	13.2

Before seasonal adjustment, the Producer Price Index for Finished Goods decreased 0.2 percent in July to 131.3 (1982=100). From July 1996 to July 1997, the Finished Goods Price Index fell 0.2 percent. During this same period, consumer food prices moved up 0.1 percent, prices for finished energy goods fell 1.4 percent, and prices for finished goods other than foods and energy showed no change. Prices received by domestic producers of intermediate goods moved down 0.3 percent during the 12 months ended in June 1997, and crude material prices fell 7.3 percent over the same period.

Finished Goods

The index for consumer goods other than foods and energy declined 0.1 percent after rising 0.1 percent in June. Prices for passenger cars turned down 1.6 percent after rising 0.3 percent in the prior month. The indexes for alcoholic beverages and floor coverings also fell after rising a month ago. Prices for sanitary paper products showed no change after rising in June. By contrast, the index for book publishing rose 0.1 percent following a 1.1- percent decline in the prior month. Prices for men's and boys' apparel also turned up after falling in June. The index for women's apparel rose more than a month ago.

Prices for finished consumer foods fell 0.2 percent in July following a 0.9-percent decline in the prior month. The index for eggs for fresh use turned up 21.7 percent after decreasing 8.6 percent in the previous month. Prices for pork, processed young chickens, and for fresh and dry vegetables also rose after falling a month earlier. The index for fresh fruits and melons declined less than in June. On the other hand, prices for roasted coffee decreased 0.4 percent following a 3.8-percent gain a month ago. The index for processed turkeys also turned down after rising in the prior month. Prices for dairy products decreased more than in June.

The index for capital equipment fell 0.1 percent after rising 0.1 percent in the previous month. Prices for light motor trucks dropped 0.8 percent following a 0.3-percent decline in June. The indexes for electronic computers and railroad equipment fell after rising in the prior month. Conversely, the index for civilian aircraft increased 0.4 percent following a 0.1 percent gain in June. Prices for x-ray equipment and for transformers and power regulators turned up after falling in the prior month.

The Producer Price Index for finished energy goods rose 0.1 percent in July following a 0.7-percent gain in June. Prices for unleaded regular gasoline advanced 1.7 percent after increasing 3.5 percent a month ago. The index for residential natural gas also rose less than in the prior month. Prices for residential electric power remained unchanged after increasing 0.2 percent in the previous month. By contrast, the index for home heating oil fell 3.4 percent after declining 5.8 percent in June. Prices for finished lubricants rose more than a month ago.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components declined 0.2 percent in July, seasonally adjusted, after showing no change in June. The indexes for intermediate energy goods and durable manufacturing materials decreased after increasing a month earlier. By contrast, prices for nondurable manufacturing materials rose after showing no change in the prior month. The index for construction materials rose after falling in the previous month. Prices for intermediate foods and feeds fell less than a month ago. Excluding foods and energy, the intermediate materials index was unchanged for July after rising slightly in June.

The index for intermediate energy goods declined 1.1 percent following a 0.6- percent advance in the previous month. Prices for commercial electric power decreased 1.8 percent after a 1.2-percent increase in June. The indexes for jet fuels, residual fuels, and liquefied petroleum gas turned down after rising a month ago. Prices for No. 2 diesel fuel fell more than in the prior month. By contrast, the index for industrial electric power advanced 0.7 percent following a 0.6-percent decline in June. Prices for coke oven products increased more than last month. The index for natural gas to electric utilities turned up after falling a month earlier.

The index for durable manufacturing materials declined 0.6 percent following a 0.3-percent advance in the previous month. Prices for copper cathode and refined copper decreased 9.7 percent after a 4.0-percent increase in June. The indexes for copper and brass mill shapes and aluminum mill shapes fell after rising in the prior month. The index for hot rolled sheet and strip moved down after showing no change a month ago. Prices for plywood rose less than a month earlier. By contrast, the index for semifinished steel mill products advanced 2.6 percent after showing no change in June. Prices for hot rolled bars, plates, and structural shapes rose more than in the previous month. The index for cement turned up after falling a month ago.

The index for nondurable manufacturing materials advanced 0.2 percent after showing no change in the previous month. Prices for basic organic chemicals increased 0.8 percent following a 0.6-percent decrease in June. The indexes for paper, fertilizer materials, and woodpulp rose more than a month ago. Prices for medicinal and botanical chemicals turned up after falling in the prior month. By contrast, the index for paperboard advanced 0.2 percent following a 0.7-percent advance in June. Prices for inedible fats and oils and plastic resins and materials decreased after increasing a month ago. The index for basic inorganic chemicals rose less than in the previous month.

The index for construction materials advanced 0.1 percent following a 0.1-percent decline in the previous month. Prices for softwood lumber decreased 0.1 percent after a 2.7-percent decrease in June. The index for plastic construction materials showed no change after falling a month ago. The indexes for fabricated structural metal products and fabricated ferrous wire products rose after showing no change a month earlier. Prices for millwork, cement, and air conditioning and refrigeration equipment advanced after declining in the prior month. By contrast, the index for plywood increased 0.1 percent following a 2.7-percent increase in June. Prices for nonferrous wire and cable and asphalt felts and coatings turned down after rising a month earlier. The index for gypsum products fell more than in the prior month.

The index for intermediate foods and feeds declined 1.2 percent following a 1.4-percent decline in the previous month. Prices for pork increased 1.2 percent after a 3.4-percent decrease in June. The indexes for prepared animal feeds and fluid milk products fell less than a month ago. By contrast, the index for refined sugar declined 2.9 percent following a 0.1-percent advance in June. Prices for flour fell more than in the previous month. The index for butter decreased after increasing a month ago.

Crude Goods

The Producer Price Index for Crude Materials for Further Processing decreased 0.1 percent, seasonally adjusted, following a 3.3-percent decrease in June. Prices for crude foodstuffs and feedstuffs rose after falling in the prior month. The index for crude energy materials fell less than a month ago. Prices for basic industrial materials fell after rising in June.

Prices for crude foodstuffs and feedstuffs gained 0.3 percent following a 5.4-percent decrease in June. Prices for slaughter cattle rose 2.8 percent following a 6.9-percent decline in the prior month. The indexes for slaughter hogs and corn also rose after falling in the previous month. Prices for slaughter broilers and fryers rose more than in June. By contrast, prices for wheat fell 10.4 percent after decreasing 4.4 percent a month ago. The index for fluid milk fell more than in June. Prices for fresh vegetables, except potatoes, rose less than in the prior month.

The index for crude energy materials dropped 0.4 percent in July, led by declines of 2.4-percent for natural gas and 5.0 percent for coal. The July decrease in the crude energy materials index follows a 2.9-percent decline in the prior month. This slowing rate of decline was led by an upturn in prices for crude petroleum. By contrast, the indexes for coal and natural gas turned down after rising in June.

The index for crude nonfood materials less energy fell 0.5 percent following a 0.4-percent increase in June. Prices for copper ores turned down 7.6 percent after rising 11.9 percent in the prior month. The index for copper base scrap also decreased after increasing in June. Prices for gold ores fell more than in the previous month. By contrast, raw cotton moved up 8.4 percent after rising 0.7 percent in the prior month. Prices for iron and steel scrap also increased more than in the previous month. The index for softwood logs, bolts, and timber turned up after falling a month ago.

August 13, 1997 U.S. Department of Labor

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