United Kingdom - Producer Price Index (PPI)

For the U.K., the Producer Price Index (PPI) measures the price changes of goods bought and sold by U.K.. .manufacturers. It provides a key measure of inflation, alongside other indicators such as the Retail Price Index (RPI) and Corporate Services Price Index (CSPI).

The output price indices measure change in the prices of goods produced by U.K. manufacturers (these are often called "factory gate prices").

The input price indices measure change in the prices of materials and fuels bought by U.K. manufacturers for processing. These are not limited to just those materials used in the final product, but also include what is required by the company in its normal day to day running.

This release contains Producer Price Index time series dataset known as MM22 and Producer Price Index - Statistical bulletin time series dataset.

Active:

• Classification: European CPA08, based on UN SIC 2007
• Measurement: Chained index relative to 2015 (Ch. Index 2015=100)
• Adjustment: Not seasonally adjusted (NSA)
• Native frequencies:
  • Monthly
  • Quarterly
  • Annual

Predecessors:

• 2010=100 - 1996 to 2020
• 1995=100 - 1991 to 2003

The PPI is created by the Office for National Statistics (ONS) based on results of a monthly survey. The data are collected under the Statistics of Trade Act, 1947.

The PPI is based on the "basket of goods" concept. The "basket of goods" is a wide collection of representative products and their prices collected each month. The movements in these prices are weighted to reflect the relative importance of the products in a chosen year (known as the base year). These are then aggregated for various sectors of industry to give the required indices. Overall there are four types of PPI series produced, these are: Gross Sector Output (GSO), Net Sector Output (NSO), Gross Sector Input (GSI), and Net Sector Input (NSI). PPI are based on 3 surveys: Domestic PPI, Export Price Indices (EPIs) and Import Price Indexes (IPIs). The majority of price collection is carried out by the Office for National Statistics (ONS), while data on some agricultural prices are collected by Defra, and DECC collects energy prices.

The structure of the PPI is defined by the European Classification of Products by Activity 2008 (CPA08) which, in turn, is based on Standard Industrial Classification (SIC 2007). The target sample size includes following: 4,225 manufacturers/respondents providing 7526 price quotes (PPI home sales). 1,237 manufacturing exporters providing 1,775 price quotes (Export indices). 1,584 importers providing 2,144 price quotations (Import indices). The sample design is stratified random sample by sales and product class for each index. Weighting and estimation is based on sales and sample design.

Data are subject to revisions. The PPI is rebased every five years to update weights used in the aggregation of the PPI.

Further reading

At the source:

• https://www.ons.gov.uk/economy/inflationandpriceindices
• http://www.ons.gov.uk/file?uri=/economy/inflationandpriceindices/qmis/producerpriceindicesqmi/qualityandmethodologyinformation_tcm77-180808.pdf

At IMF (SDDS):

• Price index: Producer prices