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Producers prices index
Description Indices shown for producer or wholesale prices are designed to monitor changes in prices of items at the first important commercial transaction. Where a choice is available, preference is given to the PPI because the concept, weighting pattern, and coverage are likely to be more consistent with national accounts and industrial production statistics. 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 WPI, when used, covers a mixture of prices of agricultural and industrial goods at various stages of production and distribution, inclusive of imports and import duties. Preference is given to indices that provide broad coverage of the economy, and the indices are computed using the Laspeyres formula, unless otherwise indicated in the country notes. Subindices are occasionally included for the PPI or the WPI. (15)
Source International Monetary Fund (IMF, 1993). Balance of Payments Manual, Fifth Edition (Washington, D.C.).
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