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The Producer Price Index (PPI) measures the average change over time in the selling prices received by domestic producers for their output. It is a key indicator of inflation at the wholesale level and often serves as a leading indicator for the Consumer Price Index (CPI). When producers face higher costs, they typically pass these on to consumers, signaling future inflationary pressure.
Calculated by the Bureau of Labor Statistics (BLS) using price data from thousands of establishments across various industries, weighted by the value of production.
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