Producer prices of agricultural products – additional information
The Producer Price Index (PPI) measures the average change in selling prices received by domestic producers for their output. In combination with the Consumer Price Index (CPI), the PPI is used as an indicator to identify economic inflation or deflation. In contrast to CPI, which measures price levels of end consumers, the PPI measures the output price change from the perspective of sellers. In this sense, the Producer Price Index of agricultural products reflects changes in selling price received by farmers.
According to the graph at hand, producer prices for agricultural products have picked up in the second quarter of 2015, after a slight slump in the preceeding quarters. Opposed to the Producer Price Index (PPI) for the industrial sector in China, where price levels have seen a consecutive downfall over the past year, prices levels in agricultural subsectors have maintained a relative stability. The PPI for fishery in China has fluctuated moderately at around 103 index points between 2012 and the second quarter of 2015. Producer prices for forestry products in China have subsequently diminished over the past years, apart from minor recoveries during the fourth quarter of 2013 and the third quarter of 2014. Regarding producer prices of farm crops, the PPI for farm crops in China has remained largely positive until Q2 2015, although prices have lost a large share of their growth momentum since after the first half of 2014.