Producer price index is calculated based on price indicators that are applied by the national producers of every country. All data are taken into account. After this, they are being processed, and the average value, which is the base of this economic indicator, is determined.
Not all of the country’s enterprises are taken for the calculation of this index. Only those enterprises are considered which belong to an industry that has a really serious impact on the economy. As the result, all calculations are settled out using data on companies that work in mining, power, and agricultural industries only.
This economic indicator is fairly important and always seriously affects the market when the certain news is published. For this reason, it is needed to pay attention to the published data because it shows the dynamics of the industrial growth in a country.