PPI.pdf

The document provides detailed information about the Producer Price Index (PPI) published by the Bureau of Labor Statistics (BLS). It explains that the PPI measures the average change in prices received by domestic producers of goods and services, offering indexes for various economic sectors like mining, manufacturing, agriculture, and services. The PPI data is used for contract adjustment, as an indicator of overall price movement, a deflator for economic series, a measure of price movement for industries and products, comparison of input and output costs, and forecasting. The document also outlines guidelines for using the PPI for contract price adjustment, including selecting appropriate indexes, specifying base prices, avoiding seasonally adjusted indexes, defining frequency of price adjustments, and providing for missing or discontinued data. Additionally, it explains the mechanics of price adjustment using PPI data and offers resources for further assistance and information on PPI data retrieval.