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Producer
Price Index (PPI) |
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Measures
the rate of inflation experienced by manufacturers at a wholesale
level. This figure shows the month-by-month change in the average
price of a fixed basket of goods and services. |
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The
raw PPI figure include the volatile food and energy items.
When manufacturers experience wholesale price inflation they
are likely to pass these increasing costs onto the consumer.
This theory installs the PPI as a leading indicator for consumer
spending. |
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