It often takes a little while for the CPI to catch up with the PPI, however. For example, you will hear on the news that the cost of crude oil has gone up. It takes a few weeks for that more expensive crude oil to be refined into more expensive gasoline, which we purchase at the pump. Below is an image of part of Table 1 of the November Producer Price Index . The Grouping is just that, groups of goods and materials.
Relative importance demonstrates what percentage each sub-grouping contributes to the whole.
The Unadjusted Index does not take notice of seasonal factors that influence the cost of production. For example, it is more expensive to grow carrots in greenhouses in the winter than outdoors, in the summer. Note that the Unadjusted PPI for Crude Consumer Foods for July was 115.5. This is probably the effect of weather, a combination, perhaps, of the effect of the draught and of the coming of winter. The column after that, adjusts the costs in terms of percentage points, taking into account seasonal adjustments.