framleiðsluverðlagsvísitalan

The framleiðsluverðlagsvísitalan, often translated as the Producer Price Index (PPI), is a statistical measure that tracks the average change over time in selling prices received by domestic producers for their output. It is a key economic indicator used to gauge inflationary pressures at the wholesale level. The index monitors prices for a basket of goods and services at various stages of production, from raw materials to intermediate goods and finally to finished products.

The PPI is typically calculated by collecting price data from a representative sample of producers across different industries. These prices are then weighted according to their importance in the overall economy. Changes in the PPI can have a significant impact on consumer prices, as increases in producer costs are often passed on to consumers.

Economists and policymakers use the PPI to understand trends in production costs, anticipate future inflation, and assess the health of the economy. For businesses, it serves as a benchmark for adjusting prices, negotiating contracts, and managing their supply chains. Different versions of the PPI may exist, distinguishing between domestic and export prices, or focusing on specific sectors of the economy. The underlying principle remains the measurement of price changes from the producer's perspective.