Forecasting Wholesale Prices

Price forecasting is the scientifically substantiated prediction of the movement of the monetary form of socially necessary expenditures on the production and sale of the most important commodity groups. It includes two basic stages: the first consists of determining and forecasting the dynamics of individual price-forming factors, and the second consists of forecasting the levels of wholesale prices, taking into account the interaction of a whole complex of factors on the basis of a single, generalizing model. Essentially, the problem is to make the most precise determination of trends in the manifestation of the law of value and of other price-forming factors for an extended future period.