Definition: Producer price index
U.S. Bureau of Labor Statistics
A family of indexes that measure the average change over time in selling prices received by domestic producers of goods and services. PPIs measure price change from the perspective of the seller. This contrasts with other measures that measure price change from the purchaser's perspective, such as the Consumer Price Index (CPI). Sellers' and purchasers' prices may differ due to government subsidies, sales and excise taxes, and distribution costs.
Source:
U.S. Bureau of Labor Statistics, Online glossary, as per September 2009
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