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New weight structure being used
in Producer Price Index
For the first time in more than 10 years, the universe of weights used to construct the Producer Price Index (PPI) has been comprehensively updated. Between January 1976 and December 1986, the values used to aggregate individual products into higher level groupings in the PPI were taken from 1972 shipment values. Since January 1987, the PPI has been constructed using 1982 shipment values for weighting purposes. This article explains how the weight change was accomplished and analyzes some of the major shifts in the relative importance of product groupings.
This excerpt is from an article published in the August 1987 issue of the Monthly Labor Review. The full text of the article is available in Adobe Acrobat's Portable Document Format (PDF). See How to view a PDF file for more information.
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