Are there limitations to the Import/Export Price Indexes?
Although import and export transaction prices are used to calculate the Import/Export Price Indexes, the IPP does not publish price information. For this reason, the Import/Export Price Indexes cannot be used to measure differences in price levels among different products and services or among different localities of origin. A higher index number for locality A (or product X) does not necessarily mean that prices are higher than for locality B (or product Y) with a lower index number. It only means that prices have risen faster for locality A (or product X) since the reference period. Because the Import/Export Price Indexes are primarily used as deflators, care must be exercised when using these data for other purposes. For example, import price data exclude charges for duties.
