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Thndr Claps » U.S. Claps » Economy 🏢 » Producer price index rises by 11.2% YoY🏷️

Producer price index rises by 11.2% YoY🏷️

by Shams Abbas
April 14, 2022

The Clap
The U.S. producer price index (PPI) recorded an 11.2% increase compared to a year before, & 1.4% on a monthly basis.

Claps Class
PPI measures the average movement in selling prices from domestic production over time. It is a measure of inflation based on input costs to producers.

More details
Like core inflation, which measures consumer prices excluding volatile items like food & energy, core PPI works the same way. Core PPI recorded a 7% year-over-year increase.

The main drivers
Month-over-month, energy prices rose the most by 5.7%. Food prices recorded a 2.4% increase on a monthly basis.

Why this matters
PPI is a forward-looking measure for inflation, meaning that it follows the prices of goods & services that are yet to reach consumers.

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