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Producer Price Indexes

PPI Weights Updated for 2007 Shipment Values

Effective with the January 2012 Producer Price Index (PPI) data release on February 16, 2012, the Bureau of Labor Statistics updated the value weights used to calculate Producer Price Indexes to more accurately reflect recent production and marketing patterns. The new weights are based on shipment values from the year 2007. These value weights come from the Census of Manufactures, the Census of Mining, the Census of Services, and the Census of Agriculture. PPI weights had been based on 2002 census shipment values since January 2007.

All Producer Price Indexes will be affected by this weight update, including all the industry net output indexes, as well as indexes for traditional commodity groupings. In addition, weights will be updated from the 2002 to the 2007 census for all stage-of-processing indexes, durability of product indexes, and special commodity-grouping indexes. This weight revision will not change any arithmetic reference bases for indexes, the dates when Producer Price Indexes were set to 100.

The basic structures of the PPI commodity and stage-of-processing classification systems will not change as a result of the weight revision. The Producer Price Indexes classified according to the North American Industry Classification System (NAICS), however, will be updated in February 2012 with the release of January 2012 index data to reflect 2012 NAICS definitions established by the U.S. Census Bureau. The weight update will also result in significant shifts in the relative importance of various industries and products. These shifts will affect aggregate indexes in a manner commensurate with the relative gains and losses in value weights from 2002 to 2007.

Commodity and stage-of-processing relative importance figures for December 2011 will be available on February 14, 2012, two business days prior to the release of January 2012 PPI data. This information will be available on the PPI website or by calling the Division of Industrial Prices and Price Indexes, Section of Index Analysis and Public Information at (202) 691-7705.


Last Modified Date: April 13, 2012