Legal Definitions - producer price index

The Producer Price Index (PPI) is a monthly index that measures the changes in wholesale prices of goods and services in the United States. It is published by the U.S. Bureau of Labor Statistics.

For example, if the PPI for steel increases by 5%, it means that the wholesale price of steel has gone up by 5% compared to the previous month.

The PPI is different from the Consumer Price Index (CPI), which measures the changes in retail prices of goods and services that consumers buy. The PPI is used by businesses to track inflation and adjust their prices accordingly.

Overall, the PPI is an important economic indicator that helps businesses and policymakers make informed decisions about pricing and economic policy.