Producer Price Index

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Producer Price Index (PPI)

Index measuring changes in wholesale prices, published by the US Bureau of Labor Statistics every month.

Producer Price Index

An index tracking the price of goods bought and sold in bulk before they reach the retail level. The producer price index usually tracks changes in these prices on a monthly basis. A large change in producer prices can lead to a change in retail prices, which affects consumers most directly. As a result, a few countries use the producer price index as a measure of inflation, but most do not. A dramatic increase in producer prices, however, may be seen as an early indicator of inflation. It is also called the wholesale price index.

producer price index

A comprehensive index of price changes at the wholesale level. Because wholesale price changes eventually find their way into consumer prices, the producer price index is closely watched as an early indicator of future retail price changes. Formerly called wholesale price index, price index. Compare consumer price index. See also GDP deflator.
References in periodicals archive ?
Producer price indexes are based on selling prices reported by establishments of all sizes selected by probability sampling, with the probability of selection proportionate to size.
All producer price indexes are routinely subject to revision once, 4 months after original publication, to reflect the availability of late reports and corrections by respondents.
For more information, see (1) "Appendix A: Seasonal Adjustment Methodology at BLS," in the BLS Handbook of Methods (April 1997), Bulletin 2490 and (2) "Summary of Changes to the PPI's Seasonal Adjustment Methodology" in the January 1995 issue of Producer Price Indexes.