Economics Economic Indicators Questions
The Producer Price Index (PPI) is a measure of the average change over time in the selling prices received by domestic producers for their output. It is used as an economic indicator to track inflationary pressures at the producer level. By monitoring changes in the PPI, policymakers and economists can gain insights into the direction and magnitude of price changes in the economy. This information helps in assessing the overall health of the economy, predicting future inflation trends, and making informed decisions regarding monetary and fiscal policies.