The Producer Price Index (PPI)is the best index to measure average price changes faced by
A)Consumers.
B)Producers.
C)Importers.
D)Labor unions negotiating COLAs.

Question

Quizplus · Accepted Answer

The Producer Price Index (PPI) measures the average change in prices received by domestic producers for their output. It is a leading indicator of consumer price inflation, as changes in producer prices can be passed on to consumers in the form of higher prices for goods and services. Therefore, the PPI is best used to measure average price changes faced by producers rather than consumers, importers, or labor unions negotiating COLAs.

The Producer Price Index (PPI)is the Best Index to Measure