KB logo

Producer Price Indices – Comparative Methodological Analysis (OECD - 2011)

Country Practices and Related Information
Producer Price Indices – Comparative Methodological Analysis 

Producer Price Indices (PPIs) serve two main functions. The first is to provide an indication of price change by producers of goods and services, and therefore as an indicator of inflationary pressure on 
consumer price indices, (CPIs). Increasingly, given the increased tendency of global production processes, they can also serve as indicators of inflationary pressures in importing countries. The second reflects their role in deflating current price estimates of economic activity to arrive at measures of activity in constant prices. 

Clearly, analysts have a keen interest in comparisons of PPIs between countries, and not just because increased producer prices in one country have the potential to spill over into PPIs or CPIs in another. But, despite this interest, little readily accessible source of information currently exists to inform users of the conceptual comparability of PPIs across countries. 
This paper is an attempt to fill that gap. It attempts to provide a detailed exposition of differences in the scope and coverage of PPIs throughout OECD countries, with additional commentary on the primary uses of PPIs across countries (which is often an explanatory factor for underlying practical differences). It also provides a summary description of a number of issues relating to the practical construction of PPIs; where different approaches may also have an impact on cross-country comparability. A more comprehensive description of these latter issues is provided in the Producer Price Index Manual.

The paper begins with a description of issues that arise in the context of international comparisons of PPIs in terms of scope and coverage (e.g. type of prices collected, classification used, treatment of export and weighting scheme). It then goes on to examine basic data and their collection methods (weights and their sources and sampling method) before considering compilation issues. In conclusion, most of these elements are set in regards within the internationally accepted statistical framework for PPIs.


Related Links

Also In This Category

On a scale of 1-5, please rate the helpfulness of this article

Not Helpful
Very Helpful
Optionally provide your comments to help us improve this article...

Thank you for your feedback!

Add Your Comments
Email Address:
RadEditor - HTML WYSIWYG Editor. MS Word-like content editing experience thanks to a rich set of formatting tools, dropdowns, dialogs, system modules and built-in spell-check.
RadEditor's components - toolbar, content area, modes and modules
Toolbar's wrapper  
Content area wrapper
RadEditor's bottom area: Design, Html and Preview modes, Statistics module and resize handle.
It contains RadEditor's Modes/views (HTML, Design and Preview), Statistics and Resizer
Editor Mode buttonsStatistics moduleEditor resizer
RadEditor's Modules - special tools used to provide extra information such as Tag Inspector, Real Time HTML Viewer, Tag Properties and other.
Verification Code:
Created: 9 Years Ago
Created By: Administrator
Last Modified: 9 Years Ago
Last Modified By: Administrator
Type: INFO
Article not rated yet.
Article has been viewed 15.6K times.
Find Similar
Customer Support Software By InstantKB 2015-2
Execution: 0.000. 10 queries. Compression Disabled.