Glossary
PPI (Producer Price Index)
The US producer price index from the Bureau of Labor Statistics. It measures the average change in selling prices received by domestic producers.
The PPI (Producer Price Index) is published monthly by the US Bureau of Labor Statistics. It measures the average change over time in the selling prices received by domestic producers for their output. The headline index is final demand, and the release comes out at 8:30 New York time.
Example
A final demand index that moves from 150.0 to 150.6 has risen 0.6 ÷ 150.0 = 0.4% on the month, or 40 bp.
Why it matters
Producer prices show cost pressure before it reaches consumers, so markets read the PPI as an early inflation signal. In our lab, the early-direction effect on gold after PPI and eight other US releases was positive until 2018 and negative in every year from 2020.