Producer price index

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Producer Price Index
  PPI final demand
  Core PPI
U.S. Producer Price Index Relative Importance for commodites[1]
  Processed foods & feeds
  Transportation equipment
  Farm products
  Pulp / paper
  Lumber / wood
  Hides, skin, leathers

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

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

Related measures[edit]

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

PPIs around the world[edit]

United States[edit]

PPI is a leading indicator, CPI and PCE lag[3]
  Core PPI
  Core CPI
  Core PCE

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]


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[edit]


  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. ^ " would be desirable to initiate steps to develop a producer price index (PPI) for the country".

External links[edit]