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PPI (Domestic Producer Price Index)

The Domestic Producer Price Index (D-PPI) is the TurkStat index that measures changes in producer prices of goods produced and sold domestically. The PPI shows cost pressure before it reaches consumers.
Contents
  1. 1.Key points
  2. 2.Formula / calculation
  3. 3.Worked example
  4. 4.Interpretation
  5. 5.Pitfalls
  6. 6.Official sources
  7. 7.Frequently asked questions

Key Points

  • It tracks the prices producers receive in sectors such as mining, manufacturing, electricity-gas and water, excluding taxes and distribution costs.
  • When the PPI rises faster than the CPI, producers may pass cost increases on to consumer prices in the following months.
  • the PPI and CPI measure different baskets; the gap between them is not a direct forecast of future inflation.

Formula / Calculation

Annual PPI change = (This month’s index / Index for the same month last year) − 1. Monthly change = (This month’s index / Previous month’s index) − 1.

Worked Example

Illustrative

If the PPI index was 4,000 a year ago and reaches 5,000 this month, annual PPI is (5,000 / 4,000) − 1 = 25%. If annual CPI over the same period is 20%, producer prices rose faster than consumer prices.

The figures are hypothetical values chosen to explain the concept; they are not data for any real fund, stock or market.

Interpretation

TurkStat publishes the PPI monthly on the same day as the CPI.

When the PPI rises faster than the CPI, producers may pass cost increases on to consumer prices in the following months. Exchange rate and commodity moves usually hit the PPI earlier and harder than the CPI. Some commercial contracts use it as a reference for price adjustments.

Pitfalls

the PPI and CPI measure different baskets; the gap between them is not a direct forecast of future inflation. Sharp energy and commodity moves can make the PPI swing temporarily. Check which index a contract actually references.

Official Sources

Official regulation and sources the definition is based on.

Pages Where This Term Appears

Related Terms

Frequently Asked Questions

The Domestic Producer Price Index (D-PPI) is the TurkStat index that measures changes in producer prices of goods produced and sold domestically.

Annual PPI change = (This month’s index / Index for the same month last year) − 1. Monthly change = (This month’s index / Previous month’s index) − 1.

Prepared by: Yatırımcı.AI Research TeamLast reviewed: Method: MethodologyEditorial policy