Definition. A monthly index of changes in the prices received by domestic producers in the US, published by the Bureau of Labor Statistics (BLS).
How it works
PPI measures prices at an earlier stage of the supply chain than CPI. It's sometimes seen as a preview of price pressure that may later reach consumer prices.
Example
It's usually released around the same time as CPI, at 8:30 AM New York time (14:30 in Warsaw). Some PPI components are used to forecast PCE inflation.
What to watch out for
The market's reaction depends on the surprise versus expectations and on whether the data changes the inflation picture.
You'll find the full explanation with graphics, examples and exercises in the 🖥️ Order flow atlas space, and its use in the live market in the 🔴 Live Room. Both are available to Club members (in Polish).
