The inputs to industry price indexes are an experimental BLS satellite series that measure monthly price change for the inputs consumed by most 3-digit North American Industry Classification System (NAICS) industry groupings. These indexes are constructed using Producer Price indexes (PPIs) and Import Price Indexes (MPIs).
Inputs to industry price indexes are calculated using PPIs and MPIs. Commodity PPIs measure price change for domestically produced inputs. MPIs measure price change for imported inputs. The components are weighted and combined to form an index that measures the average change in input costs for a given industry.
For a simplified example, imagine the inputs to a lemonade stand are cups, lemons, electricity, and marketing. The PPIs and MPIs for cups, lemons, electricity, and marketing services would each be weighted by the percent of costs they make up for the average lemonade stand operator and combined to form one input index for lemonade stands.
Other PPIs are output indexes which measure the selling prices received by producers for their sales. MPIs measure changes in the prices of goods and services purchased from abroad by U.S. residents. Input price indexes measure the average changes in industry input costs from domestically produced goods and services and imports.
Each month, after Producer Price Index and Import Price Index data are released, the input price index data table is updated with new data for the current period and revised data for the four months prior to the current period.
Last Modified Date: June 21, 2022