Stage-of-processing indexes (Producer Price Index)

What is Stage-of-processing indexes (Producer Price Index)?

Stage-of-processing indexes (Producer Price Index) meaning in Labor terms is Stage-of-processing (SOP) price indexes regroup commodities at the subproduct class (6-digit) level according to the class of buyer and the amount of physical processing or assembling the products have undergone. The PPI publishes aggregate price indexes organized by commodity-based processing stage. The three stages of processing include Finished Goods; Intermediate Materials, Supplies, and Components; and Crude Materials for Further Processing.

 

reference: Glossary: U.S. Bureau of Labor Statistics – United States Department of Labor

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