Glossary term
PPI (Producer Price Index)
A measure of wholesale-level inflation; it tends to lead consumer inflation (CPI) by feeding into final goods prices.
PPI (Producer Price Index) measures inflation at the wholesale level — the prices producers receive for their output — before it reaches consumers. It tends to lead CPI because input-cost changes eventually pass through to final goods prices. PPI is watched as an early read on the inflation pipeline and as a cross-check on the consumer-level CPI signal. See CPI and Money Temperature 101.