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Economy & Energy
No 39: August-September 2003 
ISSN 1518-2932

seta.gif (5908 bytes)No 39 Em Português






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e&e No 39

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Economical Forecasting

Brazil – Energy in 2002 Main Indexes

Utopia in the Health Area

Economical Price Indexes


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Economical Indexes (USA)


  1. CPI : The CPI is defined as a fixed-quantity price index, that is, a measure of the price change in a fixed market basket of consumption goods and services of constant quantity and quality bought on average by urban consumers, either for all urban consumers (CPI-U) or for urban wage earners and clerical workers (CPI-W). It is a ratio of the costs of purchasing a set of items of constant quality and constant quantity in two different time periods.

    The Consumer Price Index (CPI) is a way of tracking the cost of living. It is computed based on prices for the "market basket" of necessities including housing, food and beverages, transportation, apparel, entertainment, medical care, and other goods and services. The CPI is updated monthly based on the Department of Labor surveys. To track the effects of price increases, the years 1982 to 1984 are set as a basis (equal to 100). A price index of 33, therefore, indicates that the price was one-third that of the average in 1982-1984.

  1. Wholesale Price Index/WPI : The Wholesale Price Index (WPI) was the original name of the Producer Price Index (PPI) program from its inception in 1902 until 1978, when it was renamed (PPI). At the same time, emphasis was shifted from one index encompassing the whole economy, to three main indexes covering the stages of production in the economy. By changing emphasis, BLS eliminated the double counting phenomenon inherent in aggregate commodity-based indexes.

  1. Producer Price Index/PPI The Producer Price Index (PPI) is a family of indexes that measures the average change over time in selling prices received by domestic producers of goods and services. PPIs measure price change from the perspective of the seller. This contrasts with other measures, such as the Consumer Price Index (CPI), that measure price change from the purchaser's perspective. Sellers' and purchasers' prices may differ due to government subsidies, sales and excise taxes, and distribution costs.

  1. Deflator A value that allows data to be measured over time in terms of some base period, or, in more obscure terms, an implicit or explicit price index used to distinguish between those changes in the money value of gross national product which result from a change in prices and those which result from a change in physical output. The import and export price indexes produced by the International Price Program are used as deflators in the U.S. national accounts. For example, the Gross Domestic Product (GDP) consists of Consumption Expenditures+ Net Investment + Government Expenditures + Exports - Imports. Various price indexes are used to "deflate" each component of the GDP in order to make the GDP figures comparable over time. Import price indexes are used to deflate the Import component (i.e. Import Volume is divided by the Import Price index) and the Export price indexes are used to deflate the Export component (i.e. Export Volume is divided by the Export Price index).

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Tuesday, 11 November 2008

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