US Department of Labor switches to a new system for calculating the producer price index. According to a press release from the U.S. Department of Labor, producer price index data (Producer price index, PPI) for january 2014 G., which will be published on Wednesday, 19 February, have already been calculated using the new method.
The changes consist in the transition from the data evaluation system at the production stage (Stage of Processing) to the evaluation of data based on the demand of end users for finished products - intermediate demand (Final Demand-Intermediate Demand). Within the framework of the new system, the final demand index will be calculated (Final demand index), which will evaluate the change in prices for goods and services, sold to the end consumer.
The index will take into account the prices of goods, sold as part of personal consumption expenditure, capital investments, government procurement, as well as export. In this way, new figures on the PPI index will reflect the final demand for products. The US Department of Labor will also calculate the baseline (core) PPI, which does not include food data, energy and trade services.
In the producer price index, which was calculated according to the previous methodology, tracked changes in prices of finished goods (finished goods) and materials, which were used to produce them (in particular, spare parts and raw materials).
According to the US Department of Labor, the new index will track 75% of all production in the American economy - twice as much, than the previous PPI data. This was achieved due to the inclusion in the index of services, Export, government procurement and construction data.
