The Producer Price Index (PPI) is a measure of wholesale inflation, representing the prices paid to U.S. producers for goods and services. It serves as a leading indicator. On the other hand, the Consumer Price Index (CPI) reflects end-user inflation and accounts for the purchase of goods and services.

It’s important to distinguish between the two indices. PPI measures price changes from the perspective of the seller, while the CPI represents the inflation experienced by the end consumer. The impact of these changes is eventually felt by consumers, reflected in the CPI inflation rate, either bringing pleasure or pain.

The Feds are trying to get the CPI down to 2.0%, its currently sitting at 3.1% .