Producer and retail price indices
Updated 21 February 2019
The Producer Price Index (PPI) measures changes in the prices of goods sold by UK based manufacturers, while the Retail Price Index (RPI) measures changes in the prices of goods sold by retailers. Changes in the PPI and RPI for dairy products are reported on a monthly basis.
Producer price index (PPI)
Percentage change in output prices for manufactured dairy products (2010=100)
Retail price index (RPI)
Percentage change in retail sales prices for dairy products (2010=100)
- PPI measures changes in the prices of goods sold by UK based manufacturers in the form of an index. It is therefore useful as an indicator of movements in factory-gate* prices of manufactured products.
- RPI measures changes in the prices of goods sold by retailers (or prices paid by consumers).
- Using the PPI together with the RPI provides some insight into the relative rate of change in prices of goods sold at different parts of the supply chain.
- *The ONS definition of the ‘factory-gate’ price is “the price of goods sold by UK manufacturers and is the actual cost of manufacturing goods before any additional charges are added, which would give a profit. It includes costs such as labour, raw materials and energy, as well as interest on loans, site or building maintenance, or rent.” The ‘factory-gate price is a measure of the price of goods before they reach the distribution or retail sector.
- The PPIs are calculated using data supplied from individual UK manufacturers, importers and exporters. A full explanation of how the PPI is calculated can be found on the ONS website.