Verbull Word of the day
Finance glossary

PPI

Macro · intermediate
Definition

Producer Price Index, measuring price changes from the seller perspective.

The Producer Price Index tracks the average change in prices that domestic producers receive for their output. Because it captures cost pressures earlier in the supply chain, it is often seen as a leading indicator of consumer inflation measured by CPI.

In a sentence

A hot PPI reading hinted that rising producer costs would soon feed into consumer prices.

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