KNBS: Production costs up as Kenya Kwanza taxes kick in

Producer Price Indices or PPI is the change in prices of products sold by the manufacturer. It is similar to the farm gate price for agricultural products. This price is used as the base for determining a possible change in the price of products in the market.

An increase in the cost of production of an item means an increase in the price of that product when the consumer finally gets it notwithstanding the transport costs and taxes and margins by the end seller.