Consumer Price Index (CPI) — Year-over-Year vs Producer Price Index (PPI) — Year-over-Year
Consumer Price Index (CPI) — Year-over-Year is currently 2.8% (down -0.1%). Producer Price Index (PPI) — Year-over-Year is currently 2.7% (down -0.5%).
| Metric | Consumer Price Index (CPI) — Year-over-Year | Producer Price Index (PPI) — Year-over-Year |
|---|---|---|
| Current value | 2.8% | 2.7% |
| Previous reading | 2.9% | 3.2% |
| Change | -0.1% | -0.5% |
| Trend | down | down |
| Frequency | Monthly | Monthly |
| Source | Bureau of Labor Statistics | Bureau of Labor Statistics |
| Last updated | 2026-03-12 | 2026-03-13 |
| Category | inflation | inflation |
What Consumer Price Index (CPI) — Year-over-Year measures
The Consumer Price Index measures the average change over time in the prices paid by urban consumers for a basket of goods and services. The year-over-year change is the most commonly cited measure of inflation.
Inflation at 2.8% remains above the Federal Reserve's 2% target but has moderated significantly from the 2022 peak of 9.1%. For executives, this means input costs are still rising faster than the Fed's comfort zone, but the pricing environment is stabilizing. Companies with strong pricing power can pass through cost increases; those in competitive markets face margin pressure. The Fed is unlikely to cut rates aggressively until CPI moves closer to 2%.
What Producer Price Index (PPI) — Year-over-Year measures
The Producer Price Index measures the average change in selling prices received by domestic producers for their output. It is a leading indicator of consumer inflation — rising producer costs eventually get passed to consumers.
PPI declining to 2.7% from 3.2% signals easing upstream cost pressures. For executives, falling producer prices suggest input cost relief is coming — raw materials, components, and wholesale goods are becoming cheaper relative to recent months. This is bullish for profit margins if selling prices remain stable.
Frequently asked
Consumer Price Index (CPI) — Year-over-Year is currently 2.8%, down -0.1% from the previous reading. Source: Bureau of Labor Statistics, updated monthly.
Producer Price Index (PPI) — Year-over-Year is currently 2.7%, down -0.5% from the previous reading. Source: Bureau of Labor Statistics, updated monthly.
Inflation at 2.8% remains above the Federal Reserve's 2% target but has moderated significantly from the 2022 peak of 9.1%. For executives, this means input costs are still rising faster than the Fed' PPI declining to 2.7% from 3.2% signals easing upstream cost pressures. For executives, falling producer prices suggest input cost relief is coming — raw materials, components, and wholesale goods are