Gambia Bureau of Statistics (GBoS) Gambia Bureau of Statistics (GBoS) Gambia Bureau of Statistics (GBoS)

Prices Directorate

A family of index that measures the average change in selling prices received by domestic producers of goods and services over time. Producer Price Index measure price change from the perspective of the seller. This contrasts with other measures, such as the Consumer Price Index (CPI), that measure price change from the purchaser's perspective.
Sellers' and purchasers' prices may differ due to government subsidies, sales and excise taxes, and distribution costs. The PPI Index is often used as a predictor of consumer price index. Intheory, the price increases incurred by retailers will be passed on to the consumer, thereby affecting the CPI. Investors will sometimes watch the Producer Price Index, then, in an attempt to determine upcoming movements in the CPI.