PPI: Producer Price Index? Source: Bureau of Labor statistics, U.S. Department
of Labor. The Producer Price Index takes account of costs of inventory at the warehouse and distribution level. The three general categories within the Producer Price Index are crude, intermediate, and finished. The report tracks the finished goods report most closely, tracking prices for inventory that are prepared for sale to the end user. Inventory costs at the crude and intermediate stages of production often give an warning of impending (dis)inflationary pressure on the market, but the more movement you make towards crude goods, the higher these figures track commodity prices which are already open in traded reports such as the CRB (Commodity Research Bureau). The market refers to the core rate, which excludes food and
energy, at each step of production of goods. Since food and energy
prices tend to be quite changeable and have ambiguous trends in the
underlying inflation rate they are usually omitted. Though the
market reaction is determined by the month changes, yearly changes are
also noted by economists. The report is not republished monthly, but
annual revisions to certain quarterly adjustment factors can produce
incremental changes to past releases.
PPI:
Core PPI:
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