producer price indexproducer price index
(plural producer price indexes)
- (economics) A statistical estimate of the level of prices of goods and services bought by domestic producers.
producer price index - Investment & Finance Definition
A monthly statistical report produced by the Bureau of Labor Statistics (BLS) during the second full week of the month at 8:30 A.M. ET. The PPI tracks changes in prices of components used to create finished goods in industries such as agriculture, electricity, natural gas, forestry, fisheries, manufacturing, and mining. An index is also produced excluding energy and food prices, which are typically the most volatile elements of PPI. Prices for PPI are broken down into three categories: crude materials, inter-mediate goods, and finished goods. Price increases in finished goods indicate a likely increase in inflation relatively soon. Price increases in crude and intermediate goods indicate future inflationary pressure.