The Producer Prices Index (PPI) records price variations in agricultural and industrial products in cross-company transactions, that is, in trade stages prior to final consumption.
Since its creation in 1947, the PPI, initially baptized as the Wholesale Prices Index, and from April 2010, denominated the Producer Prices Index, records variations in the prices of agricultural and industrial products in cross-company transactions, that is, at the trade stages preceding final consumption.
In 1964, when monetary correction was introduced in Brazil, the PPI was selected as the reference index for moderating the National Treasury Adjustable Obligations (NTAO). Subsequently, the PPI was also adopted in other operations, such as calculation of the Standard Capital Unit (SCU), which is the mortgage adjustment parameter.
The price survey used as the basis for PPI calculation is conducted continuously, with updates every 10 days. The PPI is available in the same versions as the GPI (PPI-10, PPI-M, and PPI-DI), which have the product sample and calculation in common, differing only in the price collection period.
With the changes in the structure of the economy and forms of trade, the PPI has become even more of a sale price index for products at producer level. As such, the new nomenclature was adopted in April 2010, when the Wholesale Price Index changed to the Product Prices Index and the acronym PPI.
Analysis of price variations in agricultural and industrial products.
Agriculture and Industry sectors.
• PPI–M, between the 21st of the previous month and the 20th of the reference month;
• PPI–10, between the 11th of the previous month and the 10th of the reference month;
• PPI–DI, between the 1st and the last day of the reference month.