Producer Price Index (PPI)
The Producer Price Index (PPI) is an economic indicator that measures the average change in the prices of goods and services sold by producers in the wholesale market. It is used to measure inflation and deflation in the economy. The PPI is calculated by the Bureau of Labor Statistics (BLS) and is released monthly. The PPI is used by economists, investors, and policy makers to gauge the health of the economy and to make decisions about economic policy.
History of the Producer Price Index
The PPI was first developed in the United States in the early 1900s. It was initially used to measure the prices of agricultural products, but it was later expanded to include other goods and services. The PPI was first published in the 1920s and has been regularly updated since then. The PPI is now used to measure the prices of a wide range of goods and services, including energy, food, and manufactured goods.
Comparison of Producer Price Indexes
| Year | PPI |
|---|---|
| 2020 | -1.3% |
| 2019 | 2.3% |
| 2018 | 3.4% |
| 2017 | 2.4% |
| 2016 | 1.3% |
Summary
The Producer Price Index (PPI) is an important economic indicator that measures the average change in the prices of goods and services sold by producers in the wholesale market. It is used to measure inflation and deflation in the economy and is used by economists, investors, and policy makers to gauge the health of the economy and to make decisions about economic policy. For more information about the PPI, visit the Bureau of Labor Statistics website.
See Also
- Consumer Price Index (CPI)
- Gross Domestic Product (GDP)
- Employment Cost Index (ECI)
- Personal Consumption Expenditures (PCE)
- Commodity Price Index (CPI)
- Retail Price Index (RPI)
- Wholesale Price Index (WPI)
- Import Price Index (IPI)
- Export Price Index (EPI)
- Inflation Rate
