Statistical Terms

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Definition	Refers to a price index that measures the change in the average prices of goods and services traded by domestic producers in the first commercial transaction
Commentary	It serves as a general purpose index because it can measure the price fluctuations which reflects the general supply and demand trends of goods and services due to its wide coverage of products. Prices from the second commercial transaction are used in producing the index, in other words, it is a principle to use producers' sales price(factory price) less the value added tax for domestically manufactured products.
Source	Bank of Korea (Producer's Price Index)