Question

If we want to use a measure of inflation that foreshadows price changes before they affect prices at the retail level, we would base our measure of inflation on _______.

Answer 1

Answer: Producer price index

Step-by-step explanation:

The producer price index is used to know the average differences in prices that are received by local producers for their output.

To calculate the producer price index, the current prices gotten by the sellers of a good or service is divided by the prices of the good or service using a base year and multiplying the result by 100. The producer price index is also a measure of inflation in an economy.