Producer Price Index

The Producer Price Index (PPI) measures the average change over time in the prices that producers receive for their goods and services at the wholesale level. It reflects how much manufacturers, farmers, and other producers are charging for their products before they reach retail stores. A rising PPI indicates that production costs are increasing, which can eventually lead to higher prices for consumers. Conversely, a falling PPI suggests lower production costs. The PPI helps analyze inflation trends early on and provides insight into supply chain dynamics across various industries.