Industrial Production Price Index in Italy

It is a measure of the evolution of prices paid by producers for goods and services they use in their manufacturing process. Unlike the CPI does not include imports.

a survey of 3680 firms on the development of prices of 12,000 products were first made. Subsequently a Laspeyres index, which allows compare prices with base year (2000 in January 2003, was formerly 1995) is made, and in turn takes into account the different weights of the products. Information is also available on the percentage change in prices between two consecutive months, regardless of the base year.

It allows deflate other economic series, so that take into account the change in prices of production. It is also an indicator of the CPI, if increases in production prices are passed on to consumer.

Severely affected by the number of working days and holidays a month, so to analyze the trend should be corrected for seasonal effects and calendar.