Producer price index

A producer price index (PPI) is a price index that measures the average changes in prices received by domestic producers for their output.

Producer Price Index
  PPI final demand
  Core PPI
U.S. Producer Price Index Relative Importance for commodites[1]
  Fuels
  Metals
  Chemicals
  Machinery
  Processed foods & feeds
  Transportation equipment
  Farm products
  Pulp / paper
  Rubber / plastic
  Miscellaneous
  Nonmetallic mineral
  Lumber / wood
  Furniture / household goods
  Textile / apparel
  Hides, skin, leathers

Its importance is being undermined by the steady decline in manufactured goods as a share of spending.[2]

A number of countries that now report a producer price index previously reported a wholesale price index.

PPIs around the world

United States
PPI is a leading indicator, CPI and PCE lag[3]
  PPI
  Core PPI
  CPI
  Core CPI
  PCE
  Core PCE
Main article: U.S. Producer Price Index

In the US, the PPI was known as the Wholesale Price Index, or WPI, up to 1978. The PPI is one of the oldest continuous systems of statistical data published by the Bureau of Labor Statistics, as well as one of the oldest economic time series compiled by the Federal Government.[4] The origins of the index can be found in an 1891 U.S. Senate resolution authorizing the Senate Committee on Finance to investigate the effects of the tariff laws "upon the imports and exports, the growth, development, production, and prices of agricultural and manufactured articles at home and abroad".[5]

India
Main article: Producer Price Index (India)

The Indian Wholesale Price Index (WPI) was first published in 1902, and it now uses CPI. PPI is not yet formulated in India.[6][7]

See also

References
  1. "PPI Tables : U.S. Bureau of Labor Statistics".
  2. The Economist, Volume 387, May 31 – June 6, 2009, page 109
  3. "What Does the Producer Price Index Tell You?".
  4. "Chapter 14 Producer Prices, Background". BLS Handbook of Methods. Archived from the original on 2010-12-13.
  5. Senate Committee on Finance, Wholesale Prices, Wages, and Transportation, Senate Report No. 1394, "The Aldrich Report," Part I, 52nd Congress, 2d sess., March 3, 1893; and U.S. Department of Labor, Course of Wholesale Prices, 1890–1901, Bulletin No. 39, March 1902, pp. 205–09.
  6. "New WPI series: India moves to concept of producer price index to better gauge actual price pressure in economy".
  7. "......it would be desirable to initiate steps to develop a producer price index (PPI) for the country".
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.