producer price index (PPI)

A group of indexes that measures changes in the selling price of goods and services received by U.S. producers over a period of time. Think of it as the business-side equivalent to the consumer price index (CPI), which measures changes in prices paid by consumers: The producer price index captures price movements at the wholesale level, before price changes have bubbled up to the retail level. This report measures prices for goods at three stages of production: finished goods, intermediate goods and crude goods. Unlike the CPI, the PPI is considered to be a leading economic indicator. It is also a broader measure than the CPI, covering most industries.