The Producer Price Index (PPI) measures changes in the prices received by producers, manufacturers, and wholesalers for goods and services they sell. Produced by the Bureau of Labor Statistics, PPI tracks inflation earlier in the production pipeline than CPI or PCE, which focus on consumer prices. Because it reflects changes in input and wholesale-level pricing, PPI is often viewed as a leading indicator of potential future consumer inflation, though not all producer cost increases are passed along to buyers. In plain English, PPI tells us what businesses are getting paid before products reach the consumer.
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