The Producer Price Index (PPI) is a family of indexes that measures the average change over time in the selling prices received by domestic producers of goods and services. PPIs measure price change from the perspective of the seller, unlike other measures such as the Consumer Price Index (CPI), which measure price change from the purchasers perspective. Sellers and purchasers prices may differ due to government subsidies, sales and excise taxes, and distribution costs.

The PPI is a measure of inflation at the wholesale level and an indicator of the direction of inflation in the economy. It is often seen as an advanced indicator of price changes throughout the economy, including changes in the prices of consumer goods and services. The PPI measures the average change over time in the selling prices that domestic producers receive for their output. The prices included in the PPI are from the first commercial transaction for many products and some services.

Over 10,000 PPIs for individual products and groups of products are released each month. PPIs are available for the output of all industries in the goods-producing sectors of the U.S. economy, including mining, manufacturing, agriculture, fishing, and forestry, as well as natural gas, electricity, construction, and goods competitive with those made in the producing sectors, such as waste and scrap materials.

In summary, the Producer Price Index (PPI) is a measure of the average change over time in the selling prices received by domestic producers of goods and services. It is a measure of inflation at the wholesale level and an indicator of the direction of inflation in the economy.