Updated PPI Table 9 Category Name File Released

LIFO-PRO has completed the annual updates to the excel file used by LIFO-PRO clients for populating BLS PPI Table 9 category names via vlookup formulas in their inventory detail files. LIFO-PRO clients should use the email received containing the Complete Table 9 PPI Category Name file download link to obtain the updated file (use LiveChat, phone or email to obtain the download link if you don’t have it). LIFO-PRO clients can use the download link provided to them to obtain the updated file. The changes represent the cumulative set of added, deleted (discontinued) and recoded PPI categories/codes that have been published over the last year (BLS publishes these changes tri-annually; LIFO-PRO updates the PPI Table 9 Category Name File annually in August). The LIFO-PRO software’s PPI category name file (catname.ppi) has also been updated to include these changes, and LIFO-PRO software users that have automatic downloads enabled will have this file updated automatically upon entering the IPIC module. LIFO-PRO software users that manually download their PPI LIFO-PRO software files from the lifopro.com Downloads page will need to download the updated catname.ppi file and delete and/or replace their old file with the new one.

How & Why the BLS Changes Table 9 PPI Categories

How and why the BLS changes PPI categories are dependent on the type of the change; they are as follows:

1. Additions – These changes represent PPI categories that the BLS begun collecting price surveys and publishing price indexes on for the first time. Common reasons why additions are made relate to new products being produced that never existed before as a result of technological advances. Examples include plastics products that used to only be produced using metal and new types of carbonated and non-carbonated beverages that were previously unavailable but are now produced on a large scale.
2. Deletions (discontinuations) – These changes represent PPI categories that the BLS has published price indexes for in the past, but will no longer collect price surveys nor publish indexes for in the future. Common reasons why deletions occur include commodities becoming obsolete (i.e. windmills or typewriters) or an insufficient amount of price surveys being available to merit index publication (this often happens with products that used to be but are no longer made in the United States due to production facilities being moved to foreign countries; examples include certain children’s toys and many consumer electronic products).
3. Recoded – These changes represent PPI categories that the BLS has and will continue to publish price indexes for under a different-numbered PPI commodity code. Common reasons why PPI categories are recoded include the additions/deletions of other PPI categories causing the need to modify/reorganize the current Table 9 PPI category hierarchy in order to better represent the price indexes that they publish.

How The Table 9 Changes Impact IPIC PPI LIFO Calculations for LIFO-PRO Clients

Clients are largely unaffected by these changes as the LIFO-PRO software automatically reassigns the appropriate replacement codes to discontinued and recoded Table 9 PPI categories, but they should review the list of new PPI categories in order to determine if Table 9 PPI category assignments should change for items that the new code applies to (see list below).

2017-2018 Deleted, New & Recoded PPI Categories