What is the PRODUCER PRICE INDEX?

JUST RELEASED FOR AUGUST 2021

By Dr. David E. Marcinko MBA CMP®

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SPONSOR: http://www.CertifiedMedicalPlanner.org

DEFINITION: The PPI is a group of indexes that measure the change, over time, in the prices received by domestic producers of goods and services. It measures price changes from the perspective of the seller rather than the consumer, as with the CPI. The CPI would include imported goods, while the PPI is relevant to U.S. producers, and therefore would not include imports.

CITE: https://www.r2library.com/Resource/Title/0826102549

The PPI measures over 10,000 products and services. It reports the price changes prior to the retail level. This information is useful to the government in formulating fiscal and monetary policies. The data gathered from the PPI is often used in escalating purchase and sales contracts. That is the dollar amount to be paid at some time in the future.

NOTE: Long-term managed medical care contracts of the future will seek escalation clauses for increases in prices.

BLS: https://www.bls.gov/pPI/

full report: https://www.bls.gov/ppi/detailed-report/ppi-detailed-report-august-2021.pdf

your comments are appreciated.

thank you

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INVITE DR. MARCINKO: https://medicalexecutivepost.com/dr-david-marcinkos-

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One Response

  1. Economy:
    Consumer prices, as measured by the Consumer Price Index, rose at a slower pace in August than in July—comforting news for anyone concerned about runaway inflation. Heck, even used car prices declined 1.5%.
    Craig

    Like

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