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Legal Definitions - producer price index
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Definition of 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.
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Simple Definition
Producer Price Index: The Producer Price Index is a monthly report issued by the U.S. Bureau of Labor Statistics that measures changes in wholesale prices. It helps to track the prices of goods and services that producers pay for their inputs. This index is different from the Consumer Price Index, which measures changes in prices paid by consumers for goods and services.
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