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Quality Adjustment in the Producer Price Index



The Producer Price Index (PPI) is a constant quality fixed-input output price index. It measures monthly price change in the economy by following the prices of a representative sample of items each month. A detailed description of each item and the way it is sold is considered its price basis. To ensure the PPI measures only 'pure' price change based on market factors, it must exclude any change in price of the sampled items that is due to a change in the price basis such as physical changes to the item or changes in the way the item is sold. BLS employs quality adjustment procedures to adjust for changes in the price basis.

Quality Adjustment in the PPI


Further Information

For further assistance contact the PPI Section of Index Analysis and Public Information at or (202) 691-7705.


Last Modified Date: October 6, 2021