Producer price index
Encyclopedia
A Producer Price Index measures average changes in prices received by domestic producers for their output. It is one of several price indices
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Its importance is being undermined by the steady decline in manufactured goods as a share of spending.
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, as well as one of the oldest economic time series compiled by the Federal Government
. 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.”
n Wholesale Price Index (WPI) was first published in 1902, and was used by policy makers until it was replaced by the Producer Price Index
(PPI) in 1978.
Price index
A price index is a normalized average of prices for a given class of goods or services in a given region, during a given interval of time...
.
Its importance is being undermined by the steady decline in manufactured goods as a share of spending.
Related measures
A number of countries that now report a Producer Price Index previously reported a Wholesale Price IndexWholesale price index
The Wholesale Price Index is the price of a representative basket of wholesale goods. Some countries use WPI changes as a central measure of inflation. However, United States now report a producer price index instead.The Wholesale Price Index or WPI is "the price of a representative basket of...
.
United States
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 StatisticsBureau of Labor Statistics
The Bureau of Labor Statistics is a unit of the United States Department of Labor. It is the principal fact-finding agency for the U.S. government in the broad field of labor economics and statistics. The BLS is a governmental statistical agency that collects, processes, analyzes, and...
, as well as one of the oldest economic time series compiled by the Federal Government
Federal government of the United States
The federal government of the United States is the national government of the constitutional republic of fifty states that is the United States of America. The federal government comprises three distinct branches of government: a legislative, an executive and a judiciary. These branches and...
. 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.”
India
The IndiaIndia
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
n Wholesale Price Index (WPI) was first published in 1902, and was used by policy makers until it was replaced by the Producer Price Index
Producer Price Index (India)
The Indian Wholesale Price Index was first published in 1902, and was used by policy makers until it was replaced by the Producer Price Index in 1978. The Wholesale Price Index is the index used to measure the changes in the average price level of goods traded in wholesale market. A total of 576...
(PPI) in 1978.