Producer prices, 2017: inflation accelerates across the stages of production

Abstract

The Producer Price Index (PPI) measures the average change over time in the selling prices that domestic producers receive for their output. The indexes of the Final Demand–Intermediate Demand (FD–ID) aggregation system, used to analyze the behavior of producer prices, measure final-demand inflation (price changes for goods, services, and construction sold for personal consumption, as capital investment, to government, and for export) and intermediate-demand inflation (price changes for goods, services, and construction sold to businesses as inputs to production). This article describes PPI price movements in 2017.1