Producer Inflation in 2014: Energy Prices Drop but Prices for Services Advance

Abstract

The Producer Price Index (PPI) measures the average change over time in the selling prices received by domestic producers for their output. The PPI provides measures of final demand (price changes for goods, services, and construction sold to consumers, capital investment buyers, government, and export) and intermediate demand (price changes for goods, services, and construction sold to businesses, excluding capital investment goods, as inputs to production). This issue of Beyond the Numbers describes price changes in PPIs throughout 2014. Falling energy prices and rising services prices were some of the top movers in 2014.