A Producer Price Index
) measures average changes in prices received by domestic producers for their output. It is one of several price indices
calculated by national statistical agencies.
Its importance is being undermined by the steady decline in manufactured goods as a share of spending.
A number of countries that now report a Producer Price Index previously reported a Wholesale Price Index
PPIs around the world
In the US, the PPI was known as the Wholesale Price Index, or WPI, up to 1978. The PPI is one of the oldest continuous systems of statistical data published by the Bureau of Labor Statistics
, as well as one of the oldest economic time series compiled by the Federal Government
. The origins of the index can be found in an 1891 U.S. Senate
resolution authorizing the Senate Committee on Finance to investigate the effects of the tariff laws “upon the imports and exports, the growth, development, production, and prices of agricultural and manufactured articles at home and abroad.”
The Indian Wholesale Price Index (WPI)
was first published in 1902, and was used by policy makers until it was replaced by the Producer Price Index (PPI)