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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".
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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.
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