Producer price index (PPI)

Definition

The Producer Price Index measures the average change over time in the selling prices received by domestic producers for their output. It's a vital economic indicator that helps assess inflation at the wholesale level, before it impacts consumers.

Related terms

Inflation:

A general increase in prices and fall in the purchasing value of money.

Consumer Price Index (CPI): Measures changes in the price level of a basket of consumer goods and services purchased by households.

Economic Indicator: Statistics about economic activities that allow analysis of economic performance and predictions of future performance