Producer Price Inflation measures the changes in the prices of locally produced commodities. The Producer Price Index (PPI) is defined as “A measure of the change in the prices of goods either as they leave their place of production or as they enter the production process.”
The Producer Price Index for Intermediate manufactured goods includes:
◦ Textiles and leather goods
◦ Sawmilling and wood
◦ Chemicals, rubber and plastic products
◦ Glass and glass products
◦ Basic and fabricated metals
◦ Recycling and manufacturing n.e.c