PPI (Producer Price Index)

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Definition: PPI (Producer Price Index)

There are various types of indices which measure prices for different types of goods and services. Among all of them one of the types is known as Producer Price Index which measures changes in selling prices for domestic producers of goods and services in the country.

In India until 1978 Wholesale price index was replaced by Producers Price index by all policy makers. This index basically looks in following type of domestic goods and services produced within India.

1) Industry Based;

2) Commodity Based; and

3) Stage of Processing Based.

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