Saturday, June 8, 2019

Between 2009 and 2019, Internet Access PPI Prices Fell, CPI was Flat

This chart shows the producer price index for U.S. internet access services between 2009 and 2019. The Producer Price Index (PPI) is a family of indexes that measures the average change over time in selling prices received by domestic producers of goods and services, according to the U.S. Bureau of Labor Statistics.


The Consumer Price Index measures price change from the purchaser's perspective. Sellers' and purchasers' prices may differ due to government subsidies, sales and excise taxes, and distribution costs.


The importance of the PPI data is that the “cost” of internet access has fallen over the 2009 to 2019 period, before service provider non-controllable costs such as taxes are added.

The importance of the PPI data is that the “cost” of internet access has fallen over the 2009 to 2019 period, before service provider non-controllable costs such as taxes are added. The same time period, looked at from the Consumer Price Index, shows what end users pay, including taxes that are part of the cost of the product.


Including taxes, the cost of internet access between 2009 and 2019 has remained flat.


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