what is the producer price index

what is the producer price index

1 year ago 37
Nature

The Producer Price Index (PPI) is a family of indexes that measures the average change over time in the selling prices received by domestic producers of goods and services. It is a measure of inflation from the perspective of the product manufacturer or service supplier. PPIs measure price change from the perspective of the seller, in contrast to other measures such as the Consumer Price Index (CPI), which measure price change from the purchasers perspective. The prices included in the PPI are from the first commercial transaction for many products and some services. Over 10,000 PPIs for individual products and groups of products are released each month. PPIs are available for the output of all industries in the goods-producing sectors of the U.S. economy, including mining, manufacturing, agriculture, fishing, and forestry, as well as natural gas, electricity, construction, and goods competitive with those made in the producing sectors, such as waste and scrap materials. PPIs are often seen as advanced indicators of price changes throughout the economy, including changes in the prices of consumer goods and services.

Read Entire Article