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Producer Price Indexes
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Quality Adjustment in the Producer Price Index
Overview
The Producer Price Index (PPI) is a constant quality fixed-input output price index. It measures monthly price change in the economy by following the prices of a representative sample of items each month. A detailed description of each item and the way it is sold is considered its price basis. To ensure the PPI measures only 'pure' price change based on market factors, it must exclude any change in price of the sampled items that is due to a change in the price basis such as physical changes to the item or changes in the way the item is sold. BLS employs quality adjustment procedures to adjust for changes in the price basis.
Quality Adjustment in the PPI
- Quality Adjustment in the Producer Price Index (PDF)
- Archived PPI Reports on Quality Changes for Motor Vehicles
- A Review of Hedonic Price Adjustment Techniques for Products Experiencing Rapid and Complex Quality Change
- A new approach for quality-adjusting PPI microprocessors
- PPI Introduces Hedonic Price Estimation for Notebook Microprocessors
- PPI Introduces Hedonic Price Estimation for Server Microprocessors
- Hedonic Price Estimation for Integrated Microcircuits Producer Price Indexes
- Cross-validation of quality-adjustment methods for price indexes
- Hedonic Quality Adjustment for Internet Access Indexes
Further Information
For further assistance contact the PPI Section of Index Analysis and Public Information at ppi-info@bls.gov or (202) 691-7705.
Last Modified Date: February 16, 2024