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7 January, 20:34

A price index that tends to be a leading indicator of future inflation rates is the

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  1. 7 January, 20:47
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    Producer price index

    Explanation:

    Producer price index is used as an economic indicators which indicates the fluctuations in the price level in an economy. It is the leading indicator for the consumer price index.

    Producer price index refers to the price index which measures the change in the average price received by the producers for their output over a specified period of time.

    The producer price index doesn't takes into account the effect of indirect taxes but wholesale price index takes the effect of indirect taxes.

    It is calculated as follows:

    PPI = (Current prices received by sellers : Base year prices) * 100
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