What do PPI stage-of-processing indexes measure?
The PPI stage-of-processing indexes track the transmission of price change across successive stages of economic activity in the U.S. economy. The finished goods grouping includes commodities that are ready for sale to the final-demand user, either an individual consumer or a business firm. In national income accounting terminology, the Finished Goods Price Index roughly measures changes in prices received by producers for two portions of the gross domestic product: (1) Personal consumption expenditures on goods, and (2) capital investment expenditures on equipment. The intermediate materials, supplies, and components grouping consists partly of commodities that have been processed that still require further processing. Examples of such semifinished goods include flour, cotton yarn, steel mill products, and lumber. The intermediate goods category also encompasses nondurable, physically complete goods purchased by business firms as inputs for their operations. Examples include diesel fue
