STATISTICS II (İSTATİSTİK II) - (İNGİLİZCE) Dersi Index Numbers soru detayı:

PAYLAŞ:

SORU:

Explain the term 'producer price index'.


CEVAP:

The producer price index (PPI) is a family of indexes that measures the average change over time in selling prices received by domestic producers of goods and services. It is an output index and designed for domestic goods’ price changes; imports are not included. This index is based on the first commercial transaction of each product in non-retail markets.

The producer price index is frequently seen as as improved indicators of price changes in the economy and it is widely used as an important display of the future of the future trend of consumer price and the cost of living. When this index increases, it means there will be producer price increases that will ultimately pass to consumers with higher retail prices. Different from from the consumer price index, the producer price index measures price change from the seller’s perspective, not from the purchasers.