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RockstarMarkets
All glossary
Macro

PPI (Producer Price Index)

Monthly US producer-side inflation index. Often leads CPI by 1-2 months. Released day before CPI typically.

What it means

Producer Price Index measures change in selling prices received by domestic producers — the wholesale/producer-side equivalent of CPI's consumer-side measurement. Released by BLS monthly, typically the day before CPI. Reports headline and core PPI. Composition heavily weighted toward goods (where producer prices are most visible) compared to CPI's heavy services weight.

Why it matters

PPI often leads CPI by 1-2 months because producer-price increases must eventually be passed to consumers. Watching PPI gives an early read on what CPI might do. Markets react less to PPI directly but the read-through to CPI is significant.

How to use it

Track core PPI as a 1-2 month leading indicator for core CPI. Watch PPI services component as a leading indicator for services CPI (the stickiest CPI component). Release is the day before CPI, giving a heads-up signal for CPI positioning.

Take it further

Want a worked example or a deeper dive? Ask Rocky how this concept applies to your specific watchlist or trade idea.

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