 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Country: |
USA
| | Definition: |
A measure of change in wholesale prices of goods and services received by their producers
| | Description: |
PPI reflects the dynamics of change in prices domestic producers sell their output at at the wholesale level. Before 1978 this indicator was known as the Wholesale price index. Producer Price Index measures changes in prices in all stages of precessing (crude, intermediate, and finished). PPI includes manufacturing and other commodities (agriculture, etc). Imports are not included but they have impact on PPI through prices of imported raw materials and components. PPI is the first released indicator of inflation. It reflects changes in wholesale prices either as they leave their place of production or as they enter the production process. Unlike CPI it doesn’t take the services sector into account. PPI is calculated on the basis of prices of about 3450 goods to their prices in 1982, the basis period when PPI is considered to be equal to 100. PPI includes the following types of goods: Consumer goods — 40%; Food — 26%; Industrial equipment — 25%; Energy — 9%. Usually PPI increase precedes CPI rise that is why this indicator is referred to as a leading indicator of inflation
| | Influence: |
Producer price index increase triggers cost-push inflation, the worst kind of inflation as analysts believe, as it has a stronger impact on economy than demand inflation does. The indicator increase may trigger higher interest rates
| | Market Importance: |
| | Released: |
Released monthly as 08:30 AM ET for the prior month
| | Source: |
Bureau of Labor Statistics, U. S. Department of Labor
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
+7 (495) 710-76-76
|
© 1998—2008 «Alpari» |
|
