Producer Price Index (PPI) — Year-over-Year vs S&P 500 Price-to-Earnings Ratio (Forward)
Producer Price Index (PPI) — Year-over-Year is currently 2.7% (down -0.5%). S&P 500 Price-to-Earnings Ratio (Forward) is currently 20.3x (down -1.20).
| Metric | Producer Price Index (PPI) — Year-over-Year | S&P 500 Price-to-Earnings Ratio (Forward) |
|---|---|---|
| Current value | 2.7% | 20.3x |
| Previous reading | 3.2% | 21.5x |
| Change | -0.5% | -1.20 |
| Trend | down | down |
| Frequency | Monthly | Weekly |
| Source | Bureau of Labor Statistics | S&P Global |
| Last updated | 2026-03-13 | 2026-04-04 |
| Category | inflation | growth |
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.
What S&P 500 Price-to-Earnings Ratio (Forward) measures
The forward price-to-earnings ratio measures the S&P 500 index price relative to expected earnings per share over the next 12 months. It is the most widely used valuation metric for the U.S. stock market.
The S&P 500 forward P/E at 20.3x has declined from its recent highs but remains above the 25-year average of approximately 16.5x. Markets are pricing in solid earnings growth but are no longer at 'euphoric' valuations. For executives evaluating M&A, stock compensation, or capital market activity, current valuations suggest a market that is fairly valued to modestly expensive — not cheap, but not at bubble levels either.
Frequently asked
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.
S&P 500 Price-to-Earnings Ratio (Forward) is currently 20.3x, down -1.20 from the previous reading. Source: S&P Global, updated weekly.
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 The S&P 500 forward P/E at 20.3x has declined from its recent highs but remains above the 25-year average of approximately 16.5x. Markets are pricing in solid earnings growth but are no longer at 'eup