October 02, 2000 (The Editor’s Desk is updated each business day.)

Computer prices dip again

Prices for computers fell once again in 1999, though not by as much as in the three previous years.

[Chart data—TXT]

The Producer Price Index for electronic computers declined by 19.7 percent in 1999. This followed decreases of 26.6 percent in 1998, 21.6 percent in 1997, and 22.3 percent in 1996.

Quality improvements in CPUs, hard drives, and other computer components contributed to the falling prices of computers in 1999. Improving technology and production processes continued to result in a better product for a lower price. In addition, price competition continued in all segments of the computer hardware industry.

These data are a product of the BLS Producer Price Index program. Learn more in "Rising producer prices in 1999 dominated by energy goods," by Eleni Xenofondos and William F. Snyders, Monthly Labor Review, August 2000.