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 US 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 US Fed, along with the CPI and core personal consumption expenditure (PCE).
The latest figures for June have been published by the Bureau and they indicate producer prices increased by +0.3% across the month. The increase was more than the +0.2% expected but lower than May’s +0.5%. On a 12-month basis, the rate of producer price inflation increased to 3.3% after recording 3.1% in May and 2.7% in April.
