Producer Price Index · PPI — Final Demand
Definition
The Producer Price Index tracks the change in selling prices domestic producers receive — wholesale inflation, one step up the supply chain from CPI.
Why investors care
PPI is an early read on pipeline inflation, and several of its components feed directly into the Fed’s preferred PCE price index.
What to watch
The PPI health-care, airfare and portfolio-management lines are used to nowcast core PCE the same morning.