The Index displays an average rate of price changes for raw materials, goods and articles of intermediate utilization concerning the basic period. It is used for recalculation in compared prices the most detailed components of Gross National Product. The Index is considered to be the most principal indicator of inflationary press activities. It exerts a tremendous influence on the US dollar. Besides it determines some alterations of prices’ rate in the “basket” of goods produced in industry. By the year of 1978 it was called “Wholesale price index”. This index consists of two parts: input prices (semi-manufactured articles and components, etc) and output prices (ready-made production). Output price includes labor force price and gives an idea of inflation which is connected with alterations of labor force price.
The Producer Price Index is considered to be the most reliable only if provision and energetic sectors haven’t been taken into its account. Prices of imported goods and services are not taken into account during calculation. It exerts a limited influence on the market. Under conditions of expectations of increasing the principal interests rates, the growth of its value leads to the growth of US dollar.
