Producer Prices Inquiry
The Producer Prices Inquiry (PPI) collects monthly price information for products manufactured by businesses in the UK. Businesses receive a customised questionnaire which asks for price information for specific products manufactured by them. Companies preselect a product that is representative of their overall sales in a particular sector, then provide a current price for that product each month. The price quoted is known as the factory gate price.
The results are widely used by the Government, HM Treasury, the Bank of England and external forecasters as an indicator of inflation in the manufacturing sector. PPIs are also used in industry to:
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identify trends in the market
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as a benchmark for company performance
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as a guide to market developments
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as a basis for contracts
The Office for National Statistics (ONS) uses PPI data to produce a number of key economic measures, including the National Accounts and the Index of Production (IoP) . Both measures are widely used by the Bank of England and HM Treasury to monitor and forecast economic growth, and to inform vital policy decisions.
