PPI Pamphlet

How can BLS data help you?
In addition to the PPI, BLS produces a
wealth of useful information that is free of
charge. This includes:

Contract negotiations tools

During contract negotiations, BLS data
may be used to ensure that prices
reflect market costs over the term of the
contract. Contract adjustment guides
are available on the BLS website.

Evaluating wage/benefits
packages

Data from the BLS compensation
programs show the average salaries for
selected occupations, industries, and
localities. Information on the types and
costs of employee benefit packages is
also available.

Provide information on workplace
injuries, illnesses, and fatalities

Worker compensation rates are partly
determined by workplace injury rates.
BLS data from the Occupational Safety
and Health program report the number
of accidents and fatalities by specific
occupation and industry.

Assessing growth industries,
occupations, and career
counseling tools

The BLS Occupational Outlook Handbook
is a nationally recognized source of

career information. This publication
is used by high school and college
guidance counselors across the country.
It provides information on the training and
education needed for specific career
fields, and on earnings and job prospects
for a variety of careers. It also provides job
search tips and specific information about
the job market in each state.

For general information
and analysis on the PPI,
contact:
Producer Price Index
2 Massachusetts Avenue, NE.
Washington, DC 20212
(202) 691-7705
[email protected]
www.bls.gov/ppi
Respondent site:
www.bls.gov/respondents/ppi

To find out more:
Contact your regional BLS Economic
Analysis and Information Office
www.bls.gov/bls/regnhome.htm
Atlanta
(404) 893-4222
[email protected]
Boston
(617) 565-2327
[email protected]
Chicago
(312) 353-1880
[email protected]
Dallas
(972) 850-4800
[email protected]
Kansas City
(816) 285-7000
[email protected]
New York
(646) 264-3600
[email protected]
Philadelphia
(215) 597-3282
[email protected]
San Francisco
(415) 625-2270
[email protected]

U.S.  B ureau  of
L abor  S tatistics

The U.S. Bureau
of Labor Statistics
needs your help
Producer Price Index (PPI)

Y

our company is being asked to
provide a small amount of pricing
information to one of the principal
statistical agencies of the Federal
Government. Your data will be used to
construct the Producer Price Index.

For contract adjustment — The PPI can

What is the Producer Price
Index (PPI)?

To track specific products and industries

The PPI, one of the Nation’s Principal
Federal Economic Indicators, is a family
of indexes that measures the average
change in selling prices received by
domestic producers of goods and
services in over 500 industries. More than
10,000 indexes for individual products
and services are released each month,
including over 600 indexes measuring
price change for products sold to final
demand and intermediate demand.
Indexes are available for the products of
virtually every industry in the mining and
manufacturing sectors, as well as many
industries in the service and construction
sectors of the U.S. economy.

How does the PPI impact
and benefit you?
Producer price indexes are widely used by
the government and businesses to make
better-informed business decisions. Some
valuable uses are:

be used in purchase and sales contracts;
for instance, a builder may use the index
for steel in their construction contract to
effectively hedge against input price
changes.

— Businesses use PPI data to compare price
trends for their production to price trends in
their industry.

Forecasting — Businesses use past

price trends to forecast future price
movement when creating business plans
and to understand national economic
conditions.

To measure inflation — Indexes can

be used to measure price changes in
inputs incurred by producers of goods
and services. This information is useful
for businesses in determining pricing
strategy.

As an economic indicator — The Federal

Reserve, Congress, and Federal agencies
regularly monitor the PPI when formulating
fiscal and monetary policies, such as setting
interest rates for consumers and businesses.
Also, indexes can be used to deflate other
economic series to get inflation-free values.

For inventory valuation — The Internal

Revenue Service (IRS) has mandated that
the PPI be used for “Last In, First Out” (LIFO)
inventory valuation purposes.

Why should you participate?
You count! The quality of data produced
by the U.S. Bureau of Labor Statistics (BLS)
is a direct reflection of the number of
businesses included.
The PPI carefully constructs survey samples
to keep the number of contacts to a
minimum, making every business, large and
small, critical to the accuracy of the data.
The Nation depends upon BLS for accurate
statistics, and BLS relies upon people like
you to provide us with data.

How do you provide data
to the PPI?
A BLS economist will interview you to
determine which products or services will
be included in our indexes. You will then

U. S .  B u r e a u  o f  L a b o r  S t a t i s t i c s

be asked to provide periodic updates
for the selected products or services.
BLS uses these updates as the basis for
our PPI indexes. The update process is
straightforward and will normally only take
a few minutes to complete.

Will your information be kept
confidential and secure?
Yes. Your company’s participation,
including sampled products and prices,
will be held in confidence to the full
extent permitted by law.
BLS will use the information you provide for
statistical purposes only, in accordance
with the Confidential Information
Protection and Statistical Efficiency Act
(44 U.S.C. 3572).
Your transmitted data is protected from
malicious activities through
cybersecurity screening of Federal
information systems, in accordance
with the Cybersecurity Act of 2015.