Prices & Inflation
Producer Price Index (PPI)
The Producer Price Index measures price changes from the seller's side — what factories, farms, and wholesalers charge before goods reach the consumer. Because producer costs typically feed into retail prices with a lag, a PPI acceleration often precedes a rise in CPI: rising steel-mill prices this quarter can show up as pricier appliances next quarter.
Why it matters
It's an early-warning read on consumer inflation before it shows up in CPI.
Also known as: producer prices, wholesale price index