Sunday, January 9, 2011

Blog Assignment #2

Producer Price Index (PPI) program measures the average change over time in the selling prices received by domestic producers for their output. The prices included in the PPI are from the first commercial transaction for many products and some services.

The primary use of the PPI is to deflate revenue streams to get the real picture of output

1. Domestic manufacturers, foreign manufacturers, investors, politician.

2. The data is collected monthly by the Bureau of Labor Statistics in a systematic sampling way. The sample includes producers in manufacturing, mining and services industries. Respondent participation has been conducted on a voluntary basis.

3. There are three important PPI classification system structures, which are industry, commodity and stage of processing. The PPI for finished goods (a selected commodity grouping by stage of processing) for November 2010 is 181.9 (unadjusted).
The unadjusted October 2010 index is 181.2, the percentage increase is 0.386%. The adjusted percentage increase from October 2010 is
The unadjusted July 2010 index is 179.5, the percentage increase is 1.337%.
The unadjusted percentage increase from November 2009 to November 2010 is 3.5%.

Wendy Tam

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