The Producer Price Index (PPI) is a measure of the average change in the selling prices received by domestic producers for their output. It is calculated by the Bureau of Labor Statistics (BLS) in the United States and is used to track inflationary pressures at the wholesale level.The PPI is based on a basket of goods and services produced by domestic producers, including raw materials, intermediate goods, and finished goods. It is calculated for various industries and sectors, and can be used to track price changes for a specific industry or for the economy as a whole.The PPI is often used as a leading indicator of consumer price inflation, as changes in the prices of goods and services at the wholesale level can eventually be passed on to consumers through higher retail prices. It is also used by policymakers, businesses, and investors to monitor and analyze economic conditions and to make informed decisions about investments and other financial matters.There are several different versions of the PPI, including the Final Demand-Intermediate Demand PPI, which measures the change in prices for goods and services consumed by businesses, and the Import/Export PPI, which measures the change in prices for imports and exports. The PPI is released on a monthly basis by the BLS.
