Producer Price Index - PPI

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DEFINITION of 'Producer Price Index - PPI'

A family of indexes that measures the average change in selling prices received by domestic producers of goods and services over time. PPIs measure price change from the perspective of the seller.

BREAKING DOWN 'Producer Price Index - PPI'

The PPI looks at three areas of production: industry-based, commodity-based, and stage-of-processing-based companies.

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RELATED FAQS
  1. How should an investor interpret the consumer and business confidence index when ...

    Both the Consumer Confidence Index and the Business Confidence Index are important economic indicators used by analysts and ... Read Full Answer >>
  2. What economic indicators are most used when forecasting an exchange rate?

    The economic indicators used to forecast an exchange rate are the same ones used to determine the overall economic health ... Read Full Answer >>
  3. How does inflation affect fixed-income investments?

    Inflation is typically defined as a sustained increase in the price level of goods and services. There is no widespread consensus ... Read Full Answer >>
  4. Is the consumer price index (CPI) the best measure of inflation?

    The consumer price index (CPI) measures food; beverages; housing; apparel; transportation; medical care; recreation; education ... Read Full Answer >>
  5. What is the difference between the consumer price index (CPI) and the producer price ...

    The consumer price index, or CPI, and the producer price index, or PPI, are economic indicators, and although both quantify ... Read Full Answer >>
  6. What data does the Bureau of Labor Statistics collect?

    According to its official website, the Bureau of Labor Statistics (BLS) collects "essential statistical data" about "labor ... Read Full Answer >>
  7. What is the relationship between the PPI and the CPI?

    First, let's take a look at what these two acronyms mean: the PPI is the producer price index and the CPI is the consumer ... Read Full Answer >>

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