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Producer Price Index (PPI)

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<p><strong>Producer  Price Index </strong> (PPI)  measures the average change in the price of goods and services either  as they leave the place of production, called output PPI or as they  enter the production process, called input PPI. </p>
 
<p><strong>Producer  Price Index </strong> (PPI)  measures the average change in the price of goods and services either  as they leave the place of production, called output PPI or as they  enter the production process, called input PPI. </p>
 
<p>PPI  estimates the change in average prices that a producer receives.</p>
 
<p>PPI  estimates the change in average prices that a producer receives.</p>
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<p><strong>PPI  Vs Wholesale Price Index (WPI)</strong></p>
 
<p><strong>PPI  Vs Wholesale Price Index (WPI)</strong></p>
<p>PPI  is different from WPI on  following grounds:</p>
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<p>PPI  is different from [http://arthapedia.in/index.php?title=WPI_Food_Index WPI] on  following grounds:</p>
 
<UL>
 
<UL>
 
   <LI>WPI  captures the price changes at the point of bulk transactions and may  include some taxes levied and distribution costs up to the stage of  wholesale transactions. PPI measures the average change in prices  received by the producer and excludes indirect taxes. </li>
 
   <LI>WPI  captures the price changes at the point of bulk transactions and may  include some taxes levied and distribution costs up to the stage of  wholesale transactions. PPI measures the average change in prices  received by the producer and excludes indirect taxes. </li>
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==Also  See ==
 
==Also  See ==
 
<UL>
 
<UL>
<LI>WPI  Food Index</li>
+
<LI>[http://arthapedia.in/index.php?title=WPI_Food_Index WPI  Food Index]</li>
   <LI>Wholesale  Price Index (WPI) </li>
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   <LI>[http://www.arthapedia.in/index.php?title=Wholesale_Price_Index_(WPI) Wholesale  Price Index (WPI)] </li>
 
   <LI>
 
   <LI>
 
       [http://www.arthapedia.in/index.php?title=Consumer_Price_Index Consumer  Price Index ] (CPI) </li>
 
       [http://www.arthapedia.in/index.php?title=Consumer_Price_Index Consumer  Price Index ] (CPI) </li>
 
   <LI>[http://www.arthapedia.in/index.php?title=Consumer_Food_Price_Index_(CFPI) Consumer  Food Price Index ]</li>
 
   <LI>[http://www.arthapedia.in/index.php?title=Consumer_Food_Price_Index_(CFPI) Consumer  Food Price Index ]</li>
 
</UL>
 
</UL>
 
  
  

Latest revision as of 07:00, 15 May 2017

Producer Price Index (PPI) measures the average change in the price of goods and services either as they leave the place of production, called output PPI or as they enter the production process, called input PPI.

PPI estimates the change in average prices that a producer receives.

 

PPI Vs Wholesale Price Index (WPI)

PPI is different from WPI on following grounds:

 

PPI Vs Consumer Price Index (CPI)

PPI is different from CPI on following grounds:

PPI estimates the change in average prices that a producer receives while CPI measures the change in average prices that a consumer pays. The prices received by the producers differ from the prices paid by the consumers on account of various factor such as taxes, trade and transport margin, distribution cost etc..

Weights of items in CPI are derived from Consumer Expenditure Surveys whereas for PPI it is calculated on the basis of Supply Use tables.


1. Supply and use tables or in short supply use tables are in the form of matrices that record how supplies of different kinds of goods and services originate from domestic industries and imports and how those supplies are allocated between various intermediate or final uses, including exports. 


Also See


Contributed by

Mr. Anupam Mitra (IES 2003)
Email: anupam.mitra@gov.in

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