What is Producer price index?

The Producer Price Index (PPI) measures the average change over time in the selling prices received by domestic producers for their output. It reflects price changes from the perspective of the seller rather than the consumer, capturing price fluctuations in various industries. The PPI is an important economic indicator, as it can signal inflationary trends and impact monetary policy decisions. It is often used by policymakers, analysts, and businesses to gauge economic health and pricing power.