Economics Business Cycles Questions
The producer price index (PPI) is an economic indicator that measures the average change in prices received by domestic producers for their goods and services over time. It is used to track inflationary pressures at the producer level and provides insights into the cost of production for businesses. The PPI includes prices for both finished goods and intermediate goods, allowing analysts to assess price changes at different stages of production. By monitoring the PPI, policymakers, businesses, and investors can gain a better understanding of inflation trends and make informed decisions regarding pricing strategies, production costs, and monetary policy adjustments.