Producer Price Index

Synonyms: PPI

The producer price index (“PPI”) is a set of indexes designed to calculate and represent the average movement in selling prices as opposed to domestic production over a period of time.

The PPI is produced by the Bureau of Labor Statistics (“BLS”) with the intention of measuring movements in prices from the point of view of the seller.

By way of contrast, the consumer price index (“CPI”) measures the movement in cost changes from the point of view of the consumer, in other words tracking changes to the cost of production.

Producer Price Index (PPI)

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