Contrary to common belief, the price of a single item as listed in the CPI (Consumer Price Index) does not always rise and fall in tandem with the price of the same item in the PPI (Producer Price Index). Which of the following is
not a reason that makes this so?
a Imports are excluded from PPI, but included in CPI.
b. Taxes paid as part of the purchase are not included as part of the PPI but are included in the
CPI
The PPl includes the prices of goods purchased by other producers while the CPI includes
only the prices of goods purchased by consumers.
d. Since the PPI measures the change of the price the producer receives for their product and
the CPI measure the change of the price the consumer pays for the product, one should rise
while the other will fall.
C с