Measuring Price Change

There are some other index numbers in official statistics that are also important indicators of the national economy (macro-economy).

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Common Indices

For example:

  • Producers Price Index (PPI) - measures the change in prices both charged by and faced by businesses.
  • Labour Cost Index (LCI) - measures changes in wage and non-wage labour costs faced by employers.
  • Overseas Trade Indexes (OTIs) - measures changes in the levels of both prices and volumes of imports and exports of merchandise trade to and from a country.

Some countries construct a Retail Price Index (RPI) that measures the change in the cost of a basket of retail goods and services but, in many cases this has been replaced by the broader Consumer Price Index as a measure of inflation.

END COMMON INDICES

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