Producer Price Index debuts

Tuesday, 22 September 2015 00:04 - - {{hitsCtrl.values.hits}}

For the first time a Producer’s Price Index (PPI) which is useful for firms and can also give early warning of impending inflation has been released, Director General of Census and Statistics Department Dr. A J. Satharasinghe said.

The PPI measures the average change over the time in the prices received by domestic producers of goods and services.

The introduction of the PPI in Sri Lanka provides a more complete picture of price movements and trends for making informed decisions.

The index was 98.38 for April 2015, 99.95 for May and 98.82 for June 2015, indicating a fall in overall prices from the base.

According to the official, the index measures factory and farm gate prices. The PPI has the 2013 fourth quarter as the base, Dr. Satharasinghe said.

While energy prices had fallen, prices of some food items have risen during the period, but the overall index was down.

The PPI can be used as a replacement for the current wholesale price index (WPI) compiled by the Central Bank.