The Producer Price Index (PPI) is a measure of prices charged by producers for domestically produced goods, services, and construction. It is constructed by the U.S. Bureau of Labor Statistics in a fashion similar to the consumer price index (CPI) except it measures prices received from the producer’s perspective. It is another one of the various measures of inflation tracked by the U.S. Fed, along with the CPI and core personal consumption expenditure (PCE).
The latest January figures have been published by the Bureau and they were in line with expectations at 0.4% for the month. On an annual basis, producer price inflation fell back to 2.6% in January after reading 2.8% in December and 3.0% in November.
Core PPI, or PPI which excludes food, energy and trade services, also increased by 0.4% in January. On an annual basis, it increased to 2.5% in January after reading 2.2% in December and 2.3% in November.