Notice

Due to a lapse in appropriations, this website is not being updated.

Glossary

Directly priced method

Procedure for estimating Federal government purchases by multiplying the delivered quantity by the price paid.

Fisher ideal price index

The geometric mean of the Laspeyres and Paasche price indexes. The Fisher index is superior to either the Laspeyres or the Paasche index if the structure of relative prices in the economy changes between the base period and the current period.

Gross domestic product (GDP) price index

Measures the prices paid for goods and services produced by the U.S. economy and is derived from the prices of personal consumption expenditures (PCE), gross private domestic investment, net exports of goods and services, and government consumption expenditures and gross investment. It differs from the gross domestic purchases price index in that it ignores price changes in imports of goods and services and includes price changes in exports of goods and services.

Gross domestic purchases price index

Measures the prices paid for goods and services purchased by U.S. residents. This index is derived from the prices of personal consumption expenditures (PCE), gross private domestic investment, and government consumption expenditures and gross investment. It differs from the gross domestic product (GDP) price index in that it excludes price changes in exports of goods and services and includes price changes in imports of goods and services.

Implicit price deflator (IPD)

The ratio of the current-dollar value of a series, such as gross domestic product (GDP), to its corresponding chained-dollar value, multiplied by 100.

Laspeyres price index

A fixed-weighted price index that is computed as the sum of base-period quantities valued at current-period prices divided by the sum of base-period quantities valued at base-period prices.

Paasche price index

A fixed-weighted price index that is computed as the sum of current-period quantities valued at current-period prices divided by the sum of current-period quantities valued at base-period prices.

Producers' prices

Commodity transactions in the input-output (I-O) accounts are valued in producers' prices in order to show the relationship between the production of commodities and their purchase by intermediate and final uses. These prices exclude wholesale and retail trade margins and transportation costs, but they include sales and excise taxes collected and remitted by producers. Transportation costs and wholesale and retail trade margins are treated separately as commodities that are produced by industries and purchased by intermediate and final users.