Episode 134: The Producer Price Index

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Used as a signal for rising average prices at the consumer level, the Producer Price Index (PPI) represents a family of indexes similar to CPI. However, as opposed to focusing on the prices that consumers pay, the PPI focuses on the change in prices received by producers. Since the price received by producers is a cost to retail businesses, the PPI is also seen as a reflection of the costs that businesses incur to acquire the goods needed to offer their products. An increase in costs at the business level squeezes profit margins and puts pressure on these businesses to pass the added cost onto consumers.
For access to information on the consumer price index, be sure to check out Episode 133 titled "How to Measure the Rate of Inflation"

[@farmman6587]

Thank you

[@travismatthews9495]

good explanation but the writing in the video is very distracting. Next time just make slides that go along with what you're talking about

[@knowledgehappiness5011]

Thanks for making it
I have question about CPI index which body provide data about it and is there always high PPI ?

[@priyamvada3694]

cpi has 3 different again,cpi for industrial workers and cpi for urban non manual workers is calculated by labour bureau of shimla,cpi of agriculatural workers s calculated by central statistical ofc

[@abhishekpai3641]

are profits included in PPI?

[@mingkilego1597]

can PPI be benefit in india as a long run term...???

[@johnabo4]

Okay so if there is an increase in PPI does that make the situation for the economy better it worse?

[@josiahwillemse3514]

An increase in PPI will increase inflation and can be good or bad depending on the circumstances. If the economy is well below capacity in a recession, it constitues a good sign because unused resources are being used. However, in a boom, an increase in the PPI is usually a sign the economy is at capacity and could stagnate( experience negative growth and high inflation)