UK Accounting Glossary
The Producer Price Index (PPI) comprises a group of indexes that measures price changes for goods and services at the wholesale level. From raw materials to finished goods, the Producer Price Index spans the various levels of the production process. Notably, the sample used for the Producer Price Index includes over 25,000 establishments and more than 100,000 price quotations. The Producer Price Index can be contrasted with the Consumer Price Index, which measures price changes from the consumer’s perspective. Indeed, because the Producer Price Index measures price changes among producers, it is watched for clues about price changes for consumers. The Producer Price Index is also used in sales contracts to adjust for price changes. Compiled by the Bureau of Labor Statistics, the Producer Price Index is released sometime in the middle of the month at 8:30 A.M. A core rate for the Producer Price Index that excludes the volatile energy and food sectors is also released at that time.
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This glossary post was last updated: 6th February 2020.