M2 Money Supply (Year-over-Year Change) vs Producer Price Index (PPI) — Year-over-Year
M2 Money Supply (Year-over-Year Change) is currently 3.9% (up +0.2%). Producer Price Index (PPI) — Year-over-Year is currently 2.7% (down -0.5%).
| Metric | M2 Money Supply (Year-over-Year Change) | Producer Price Index (PPI) — Year-over-Year |
|---|---|---|
| Current value | 3.9% | 2.7% |
| Previous reading | 3.7% | 3.2% |
| Change | +0.2% | -0.5% |
| Trend | up | down |
| Frequency | Monthly | Monthly |
| Source | Federal Reserve | Bureau of Labor Statistics |
| Last updated | 2026-03-25 | 2026-03-13 |
| Category | money | inflation |
What M2 Money Supply (Year-over-Year Change) measures
M2 is a measure of the money supply that includes cash, checking deposits, savings deposits, money market funds, and small time deposits. Year-over-year changes in M2 are a leading indicator of inflation and economic activity.
M2 growth has recovered to 3.9% year-over-year after an unprecedented contraction in 2023 (the first in modern history). The normalization of money supply growth supports economic activity without being excessively inflationary. For executives, moderate M2 growth (3-5%) is consistent with a healthy economy — it means enough liquidity to support business activity without fueling the kind of excess that drove 2021-2022 inflation.
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
M2 Money Supply (Year-over-Year Change) is currently 3.9%, up +0.2% from the previous reading. Source: Federal Reserve, 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.
M2 growth has recovered to 3.9% year-over-year after an unprecedented contraction in 2023 (the first in modern history). The normalization of money supply growth supports economic activity without bei 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