The producer price index (PPI) is a measure of prices charged by producers for domestically produced goods, services, and construction. In the US it is constructed by the 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 core personal consumption expenditure (PCE) data.
The latest figures for September have been published by the Bureau and they indicate producer prices increased by 0.2% during the month after seasonal adjustments. The result was in line with expectations and a marked turnaround from August’s 0.1% decline. On a 12-month basis, the rate of producer price inflation after seasonal adjustments slipped back to 2.7% after recording 2.8% in August and 3.2% in July.
“Core” PPI inflation, increased on a seasonally-adjusted basis by +0.2% for the month. On an annual basis, the rate increased from 2.4% after revisions in August to 2.5% in September.