Farm Price Index - FPI
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 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. |
Related Definitions
Articles Of Interest
-
Economic Indicators That Do-It-Yourself Investors Should Know
Understanding these investing tools will put the market in your hands. -
The Barnyard Basics Of Derivatives
This tale of a fictional chicken farm is a great way to learn how derivatives work in the market. -
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. -
Explaining The World Through Macroeconomic Analysis
From unemployment and inflation to government policy, learn what macroeconomics measures and how it affects everyone. -
Introduction To Stationary And Non-Stationary Processes
What to know about stationary and non-stationary processes before you try to model or forecast. -
What is GDP and why is it so important?
The gross domestic product (GDP) is one the primary indicators used to gauge the health of a country's economy. It represents the total dollar value of all goods and services produced over a ... -
Economic Indicators To Know
The economy has a large impact on the market. Learn how to interpret the most important reports. -
Introduction To Treasury Inflation-Protected Securities (TIPS)
If you want to protect your portfolio from inflation, all you need are a few TIPS. -
Introduction To Coincident And Lagging Economic Indicators
Investors can learn a lot, or very little, from these indicators once they know how to use them. -
Nobel Winners Are Economic Prizes
Before you try to profit from their theories, you should learn about the creators themselves.
Free Annual Reports