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Bureau of Labor Statistics > Office of Survey Methods Research > Publications > Browse Research Papers

Combined PPI and IPP Input to Industry Indexes

Jonathan Weinhagen


This paper presents a newly developed methodology that combines Bureau of Labor Statistics Producer Price Index and International Price Index data to construct indexes that measure price changes for inputs to production consumed by domestic industries. Producer Price Index data are used to measure price changes for industry purchases of domestically purchased inputs, while International Price Index data are used to measure price changes for imported inputs. Bureau of Economic Analysis Input-Output data are used to determine the set of commodities a given industry consumes as inputs. Weights for the indexes are developed from both Bureau of Economic Analysis Input-Output data and US Census data. The paper also applies the methodology to the domestic automobile manufacturing industry by developing an index measuring price changes for both domestically produced and imported inputs to the automobile manufacturing industry.