| Definition:
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Producer Price Index (PPI) tracks the price paid for goods at the wholesale level. It is a measure of inflation at the wholesale level. Core PPI excludes prices paid for food and energy. |
| Meaning:
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PPI is the first report on inflation. It contains data on both consumer goods and capital equipment and is tracked at three stages of production (crude goods, intermediate goods and finished goods) in these industries: manufacturing, mining, agricultural and electric utilities. PPI excludes services and is related more to the cost of goods than the cost of labor and affects the seller more than the buyer. Inflation at the producer level is often passed through to consumers. Many economists exclude the volatile categories of food and energy or Core PPI when using PPI as a measure of inflation.
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| Weight:
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***
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| Source:
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U.S. Department of Labor: Bureau of Labor Statistics
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| Availability:
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Report released 2-3 weeks following the reference month
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| Frequency:
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Monthly
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| Coverage:
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Data is for the previous month (Data for June is released in July)
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| Volatility:
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Moderate
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Impact on the Markets:
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| Interest Rates:
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PPI = Interest Rates
PPI = Interest Rates
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| Fixed-income:
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PPI = Bond Market
PPI = Bond Market
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| Equities:
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PPI = Stock Market
PPI = Stock Market
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| Dollar:
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PPI = Uncertain
PPI = Uncertain
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| More Information:
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U.S. Department of Labor: Bureau of Labor Statistics
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