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 the CPI and core personal consumption expenditure (PCE).
The latest figures for October have been published by the Bureau and they indicate producer prices increased by +0.6% during the month. The result was more than the expected +0.2% and the highest since September 2012. On a 12-month basis, the rate of producer price inflation moved to 2.9% after recording 2.7% in September and 2.8% in August.