What is PPI (Producer Price Index)?
In one line: PPI, the Producer Price Index, measures the change in prices US businesses receive for the goods and services they sell, reported monthly by the BLS.
A simple example
CPI looks at prices shoppers pay. PPI looks one step earlier: prices businesses get when they sell to other businesses, or to the end buyer.
Say a basket of producer goods cost $200 last year and costs $206 now.
- Change: ($206 − $200) ÷ $200 × 100 = 3% over the year.
The Bureau of Labor Statistics (BLS) publishes PPI monthly at 8:30 am ET. The headline is usually "final demand" PPI. A "core" version leaves out food and energy, which jump around.
Why it matters
PPI can hint at where shop prices are heading. If businesses pay more for parts and services, some of that cost may be passed on to shoppers later.
That's why traders watch it as an early look at Inflation. Higher-than-expected PPI can push interest rate expectations up, lift the US dollar, and weigh on stocks and bonds. Lower-than-expected can do the opposite. No reaction is guaranteed.
It often comes out the same week as CPI. Our PPI report guide shows what to compare: actual, forecast and previous.
A common mistake
Treating PPI as a sure preview of CPI. Not every price rise passes through to shoppers. Companies may absorb some costs, and the two reports measure different baskets. Use PPI as a hint, not a forecast.
Report mornings can move fast. Spreads widen and stops can slip. Many beginners stay out, or wait 15–30 minutes after the number. See CPI and FOMC days.
Questions
What's the difference between PPI and CPI?
PPI tracks prices businesses receive. CPI tracks prices consumers pay. PPI is further up the supply chain.
When is PPI released?
Monthly, by the BLS, at 8:30 am ET, usually around the middle of the month. Check an economic calendar for the exact date.
What is core PPI?
PPI without food and energy, and in some versions trade services too. It shows the steadier trend underneath.
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