US: What's the difference between CPI and PPI? | Metals Mine

  • US: What's the difference between CPI and PPI?

    From fredblog.stlouisfed.org

    There are many price indices for the US economy. Most people focus on the consumer price index (CPI) because it’s relevant to individual members of the economy. Another index, often misunderstood,* is the producer price index (PPI). In short, the CPI is what consumers pay and the PPI is what sellers receive. You might think that what the producer gets would equal what the consumer pays, but our FRED graph above makes it clear that the CPI and PPI are different things. 1. The difference between the two sets of prices includes shipping, taxes, retail costs, and retail margins. (The profit margin of the retailer acts ... (full story)

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