Producer price index

How it is used

Usually shortened to PPI. Analysts watch it as an early signal for consumer prices, because higher production costs are often passed on later. Reports say producer prices rose or eased. TurkStat publishes the domestic PPI every month together with the CPI.

Example sentences

1. The producer price index rose 2% last month, mainly because of energy costs.

2. A jump in the producer price index often shows up in consumer prices a few months later.

Common collocations

• PPI inflation
• producer prices
• domestic PPI
• factory-gate prices

Related terms

• consumer price indexA measure of the average change over time in the prices that households pay for a fixed basket of goods and services, used to calculate inflation.
• inflationA general and continuing rise in the prices of goods and services in an economy, which means each unit of money buys less over time.
• cost-push inflationInflation caused by rising production costs, such as higher energy prices, wages or import costs, which firms pass on to their customers.
• pass-throughThe degree to which a change in costs, especially in the exchange rate, is passed on to consumer prices.

More terms: Inflation and Prices

• deflation
• purchasing power
• cost of living
• in real terms
• nominal
• stagflation
• hyperinflation
• core inflation
• disinflation
• headline inflation
• price stability
• inflation expectations