PMIs and inflation
The PMI Input Price Index shares a strong correlation to producer price indices (PPIs) released by official statistics bodies across the world, one of the main constituents of inflation rate change.
Input prices are calculated from the survey question: "Please compare the average price of your purchases (volume weighted) this month with the situation one month ago". Wages and salaries are not included.
- Click here to access a research note that gives examples of the close correlation between input prices and producer price indices.
- Click here to access a research note showing how the inflationary surge at UK manufacturers continued in March, but subdued growth is likely to tilt MPC toward a further cut in April.