The Producers Price Index has two types of indexes. First, the output indexes which measure changes in the prices received by producers. Second, the input indexes which measure changes in the cost of production (excluding labour and capital costs).
Outputs indexes: The output indexes measure changes in prices received by producers. The output indexes cover the prices of: Primary products ,Manufactured goods, Revenue from renting and leasing, The provision of services, Capital work undertaken by own employees, Margins on goods purchased for resale
Excluded from the outputs indexes are: Interest and dividends, Royalties and patent fees, Receipts from insurance claims, Government cash grants and subsidies, GST and other indirect taxes
These indexes are designed to measure price changes at a level corresponding to the prices received before the addition of commodity taxes or deduction of