Producer price indices (PPI)

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Producer price indices measure the rate of change in prices of products sold as they leave the producer. They exclude any taxes, transport and trade margins that the purchaser may have to pay. PPIs provide measures of average movements of prices received by the producers of various commodities. They are often seen as advanced indicators of price changes throughout the economy, including changes in the prices of consumer goods and services. This indicator is measured in terms of the annual growth rate and in index. Manufacturing covers the production of semi-processed goods and other intermediate goods as well as final products such as consumer goods and capital equipment. A variety of price indices may be used to measure inflation in an economy. These include consumer price indices (CPI), price indices relating to specific goods and/or services, GDP deflators and producer price indices (PPI).

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Producer price indices (PPI)

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Producer price indices (PPI)

Producer price indices measure the rate of change in prices of products sold as they leave the producer. They exclude any taxes, transport and trade margins that the purchaser may have to pay. PPIs provide measures of average movements of prices received by the producers of various commodities. They are often seen as advanced indicators of price changes throughout the economy, including changes in the prices of consumer goods and services. This indicator is measured in terms of the annual growth rate and in index. Manufacturing covers the production of semi-processed goods and other intermediate goods as well as final products such as consumer goods and capital equipment. A variety of price indices may be used to measure inflation in an economy. These include consumer price indices (CPI), price indices relating to specific goods and/or services, GDP deflators and producer price indices (PPI).

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