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.

Investopedia Commentary

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

Related Links

All about Inflation Tutorial
Why the CPI Is a Friend to Investors
Macroeconomic Analysis

See also: CPI, Deflation, Inflation, RPI

Also spelled: PPI

producer price index

A comprehensive index of price changes at the wholesale level. Because wholesale price changes eventually find their way into consumer prices, the producer price index is closely watched as an early indicator of future retail price changes. Formerly called wholesale price index, Compare consumer price index. Also called price index. See also GDP deflator.