eco analysis part 2

II. S ocial – Inflation for producers  Inflation for producers: measures the average changes in prices received by domestic producers that affect their production. This differs from the CPI in that price subsidies, profits and taxes may cause that the... More

II. S ocial – Inflation for producers  Inflation for producers: measures the average changes in prices received by domestic producers that affect their production. This differs from the CPI in that price subsidies, profits and taxes may cause that the amount received by the producer to differ from what the consumer paid.  The producer price index measures the pressure being put on producers by the costs of their raw materials. This could be “passed” to consumers, or it could be absorbed by profits, or by increasing productivity. Less