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Term
Producer price indices
Description The amount receivable by the producer from the purchaser for a unit of a good or service produced as output minus any value-added tax, or similar deductible tax, invoiced to the purchaser. It includes any transport charges invoiced separately by the producer (21, para. 6.205). In principle, the PPI should include service industries, but in practice it is limited to the domestic agricultural and industrial sectors. The prices should be farm-gate prices for the agricultural sector and ex-factory for the industrial sector. The indices are computed using the Laspeyres formula, unless otherwise indicated in the country notes. Subindices are occasionally included for the PPI (4, p. XVI). See also index number, Laspeyres.
Source United Nations (1994). Commodity Indexes for the Standard International Trade Classification, Revision 3. Statistical Division, Series M, No. 38, Rev. 2 (United Nations publication, Sales No. E.94.XVII.10).
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