4 thoughts on “What is PPI?”

  1. Procer Price INDEX
    producer price index (also known as industrial product factory price index). See: CPI, Consumer Price INDEX, consumer price index or resident consumer price index producer price index is an index used to measure the average change of manufacturer's factory price. One. If the production price index is higher than expected, it indicates the risk of inflation. If the production price index is lower than the expected value, it indicates the risk of deflation. The main purpose of the producer price index is to measure the price change of various products at different production stages. Generally speaking, the production of goods is divided into three stages: 1. The original stage: the product has not yet been processed; 2. The intermediate stage: the product needs to be further processed; formalities. PPI is an index that measures the change trend and degree of changes in industrial enterprise products. It is an important economic indicator reflecting the changes in the price change in the production field in a certain period. It is also an important basis for formulating economic policies and national economic accounting. At present, there are more than 4,000 types of survey products in my country (including more than 9,500 specifications), covering all 39 industrial industries, involving 186 survey categories. Corresponding to PPI, CPI is the Consumer Price Index (Consumer Price Index) is an indicator of price change indicators based on products and labor prices related to residents, and is usually used as an important indicator to observe the level of inflation. According to the law of price conduction, PPI has a certain impact on CPI. PPI reflects the price level of production links, and CPI reflects the price level of the consumption link. The fluctuation of the overall price level generally appears in the production field, and then spreads towards the downstream industry through the industrial chain, and finally affects consumer goods. The industrial chain can be divided into two: one is the production of industrial products as the production of raw materials, and there are raw materials → production materials → living materials. The other is the production of agricultural products as raw materials. There are agricultural production materials → agricultural products → food transmission. In China, in terms of the above two conduction paths, the current second, that is, the transmission of food to food is more fully transmitted. Since 2006, the rise in grain prices is the main factor that drives the rise of CPI. But the first one is that the transmission of industrial products to CPI is basically invalid. Because CPI includes not only consumer goods prices, but also service prices, CPI and PPI are not strictly corresponding in statistics, so it is possible to change the changes in CPI and PPI. CPI and PPI continue to be separated, which does not conform to the law of price conduction. The main reason for the breakdown of the price transmission is that the industrial product market is in the buyer's market and the government's control of the price of public product prices. Under different market conditions, there are two possible situations to transmit industrial products to the final consumer price: First, under the market conditions of the seller, the price of industrial products (such as electricity, water, coal and other energy, raw materials prices) caused by rising costs rising It will be smoothly transmitted to the price of consumer goods; the second is that under the market conditions of the buyer, the price of industrial products is difficult to pass on the price of consumer goods due to the greater supply. The price of the product is stable, and it may even continue to decrease, and the profit of corporate profits is reduced. For some companies that are difficult to digest costs, they may face bankruptcy. The prices of industrial products that can be successfully completed (mainly the price of energy, coal, water and other energy raw materials) are currently mainly the government's price adjustment range. In the case of continued rising product prices (PPI), companies cannot smoothly pass the upstream costs, which will increase the final consumer product price (CPI), which will eventually lead to a reduction in corporate profits. PPI is usually used as an important indicator to observe the level of inflation. Due to the increase in the seasonal changes in food prices, the energy prices often fluctuate. In order to more clearly reflect the price changes of the overall commodity, the changes in food and energy prices are generally eliminated, thereby forming a "core producer price index ", Further observe the trend of inflation rate changes. In the United States, the data collection of the US producer price index is responsible for the US Labor Bureau. They collect information to major manufacturers by questionnaires. Quotation, weighted the exchanges of hundreds of advances. For convenience, the base period is set in 1967. Generally speaking, when the producer's price index increases a lot and continues to accelerate, the corresponding response of the country's central bank is to take interest rate hikes to prevent the rapid rise in inflation, the possibility of the country's currency appreciation increase; vice versa. Real economists pay attention to PPI and the media pays attention to Core PPI. After removing food and energy, it is called the "core PPI" index to correctly judge the real trend of prices --- this is due to food and energy prices It has always been affected by seasonal and supply and demand, and fluctuates violently. Core PPI will have a misleading effect in the short term. How to calculate, PPI mainly focuses on industrial, mining, raw materials, and semi -finished products, which are currently added to the service industry, but the proportion is small. The Ministry of Labor will investigate in more than 25,000 companies to obtain product prices. According to the industry's different and the proportion of the economy, the proportion and weight of the economy are distributed. PPI can reflect the price fluctuations of the producer obtaining raw materials and estimate the expected CPI, thereby estimating the risk of inflation. In short, the rise of PPI is not a good thing. If the producer transfers the cost, the price of terminal consumer goods will rise and inflation rises. If it is not transferred, the profit of corporate profits is declining and the economy has a downlink risk.

  2. The PPI mentioned in the general news refers to the producer's price index, which is a indicator similar to CPI to indicate the price level of the production link. PPI to a certain extent is the guidance of CPI changes, but the terminal products involved in CPI include agricultural products (such as various agricultural products, diets), industrial products (home appliances) and service products. PPI only reflect industrial products In the production session, the price level of production materials.

  3. PPI has a variety of meanings:
    ppi = Procer Price INDEX, producer price index;
    ppi = pixels per inves, the number of pixels (pixel) per inch;
    PPI = acid, coke phosphate;
    ppi = process index, process ability index;
    PPI = Protein-ProTein, protein interoperability;
    ppi = pdh physical interface, PDH physical interface.

    It details Ke./view/101651

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