Macroeconomics & Investing · Entry 17 of 71

What is the Producer Price Index (PPI)?

Wholesale inflation tracking from the factory gate

Core Definition

The Producer Price Index (PPI) measures the average change in selling prices received by domestic producers for their goods and services over time.

Key Aspects

1. Helps gauge inflation from the perspective of producers: Measures costs of raw materials, energy, and labor before goods hit the consumer market.
2. Indicates price trends in industries: Crucial for heavy industry, manufacturing, agriculture, and mining.