THE COMBINATION OF AGRICULTURAL OUTPUT AND INPUT PRICE INDEXES

Measures of agricultural incomes, and of the industry's productivity, are often derived by combining measures of the aggregate values and vo lumes of the industry's outputs and inputs. Combinations of price indi ces are less common but some have been published by Eurostat and are d escribed in this paper. They are of two basic forms, one indicating th e net effect of changes in output prices and input prices on the indus try's value added and the other indicating changes in the industry's t erms of trade. The paper examines the role, construction and interpret ation of these measures and offers some cautions about their interpret ation in the context of CAP reform.