PPI stands for the Producer Price Index, a measure of price changes from the seller's perspective.
Understanding the Producer Price Index (PPI)
The Producer Price Index (PPI) is a vital economic indicator that tracks the average change over time in the selling prices received by domestic producers for their goods and services. Unlike the Consumer Price Index (CPI), which measures price changes from the consumer's point of view, the PPI focuses on the seller's perspective.
- Definition: The PPI is a family of indexes that measure the average change over time in selling prices received by domestic producers of goods and services.
- Perspective: PPIs measure price change from the perspective of the seller. (Reference: 16-Mar-2023)
Key Aspects of PPI
| Aspect | Description |
|---|---|
| Measurement | Tracks changes in selling prices received by domestic producers. |
| Perspective | Focuses on the seller's price changes rather than the consumer's. |
| Scope | Covers a wide range of industries producing goods and services within a country. |
