Home Restaurant Free Restaurant Business Plan 4.29 Producer Price Annual Change Analysis
4.29 Producer Price Annual Change Analysis
In this analysis we pick up where we left off in the prior analysis of producer prices. Here we look at the annual change in the producer price index for all items in the New York metropolitan area and compare that to a similar change in the producer prices for foods and feeds. What is interesting when we look at this change over time is that there is quite a bit of corelation between the changes in these two indices although they may not quite change as much each year.
For example in 1998 the producer price index for all items in the New York metropolitan area was -2.5% and the change for the producer price index for foodsand feeds was -1.8%. Likewise in the year 2008, the producer price index was up 9.8% but the producer price index for foods and feeds was up 7.3%.On average we also find that average annual change in producer prices since 1998 has been 4.1% and for producer prices for foods and feeds has been 3.2%.
Clearly for us at A Taste of Tuscany the producer prices for foods and feeds had a more direct impact since these prices impact the prices of foods consumedboth at home and away from home by the consumer. We look to factor in the increase of at least 3% to 5% on average every year in our estimates and projections.
Quick Links:
- Go to the Corresponding Template section for this industry.
- Go to the Corresponding Questionnaire section for this industry.
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