Farm Price Index - FPI

Dictionary Says

Definition of 'Farm Price Index - FPI'

An index that monitors the prices received by farmers for sales including crops and livestock. The farm price index, which is released by the U.S. Department of Agriculture on a monthly basis, is a tool that analysts use as a leading indicator of inflation or deflation in the overall economy.

It is also known as the "Farm Products Price Index (FPPI)" or the "USDA Farm Price Index".
Investopedia Says

Investopedia explains 'Farm Price Index - FPI'

Farm prices are thought to be a leading indicator of food prices in the producer price index (PPI) and the consumer price index (CPI), and a sign of overall inflation or deflation. Because inflation (whether high or low) can have drastic effects on the investment markets, this is a valuable tool for predicting market movements.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Economic Calendar

    A calendar used ...
  2. Economic Cycle

    The natural ...
  3. Economic Growth

    An increase in ...
  4. Economic Growth Rate

    A measure of ...
  5. Economic Indicator

    A piece of ...
  6. Gross Domestic Product - GDP

    The monetary ...
  7. IMF Nonfuel Commodity Index

    An index of ...
  8. Investment Farm

    An agricultural ...
  9. Producer Price Index - PPI

    A family of ...
  10. Consumer Price Index - CPI

    A measure that ...

Articles Of Interest

  1. How To Trade Forex On News Releases

    When economic data comes out, it can have a marked impact on the currency market. Find out how to profit.
  2. The Barnyard Basics Of Derivatives

    This tale of a fictional chicken farm is a great way to learn how derivatives work in the market.
  3. Economic Indicators To Know

    The economy has a large impact on the market. Learn how to interpret the most important reports.
  4. Explaining The World Through Macroeconomic Analysis

    From unemployment and inflation to government policy, learn what macroeconomics measures and how it affects everyone.
  5. Introduction To Stationary And Non-Stationary Processes

    What to know about stationary and non-stationary processes before you try to model or forecast.
  6. Economic Indicators For The Do-It-Yourself Investor

    These tools put the market in your hands.
  7. What is GDP and why is it so important?

  8. A Primer On Reserve Currencies

    For nearly a century, the U.S. dollar has served as the world's premier reserve currency, but the future is uncertain.
  9. Derivatives 101

    Learn how to use this type of investment as an alternative way to participate in the market.
  10. Okun's Law: Economic Growth And Unemployment

    Learn about Okun's Law, why it is important and how it stood the test of time since first being published.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center