Economicae
 
 
 InvisibleHands
 
 

 
 
Producer Price Index

 

            The Producer Price Index (PPI) covers nonretail markets, averaging price changes for over 2,800 primary products and such intermediate goods as flour, steel, and office supplies. Most prices summarized by this index are the wholesale selling prices of representative producers, but some prices come from specialized markets such as commodity exchanges. The prices used for imported products (e.g., coffee beans) are the prices paid by the original importer (e.g., Folger's). Your reaction may be, "Why should I care about this concept? I only consume. I'm not a producer." Be aware, however, that the PPI often signals the direction consumer prices will take.

 

 

 

InvisibleHandB

UNC CH Clubs

 

    ©2008 EconomicsInteractive.com