Inflation Indicator
Producer Price Index (PPI) — Year-over-Year
Updated 2026-03-13 · Monthly · Source: Bureau of Labor Statistics · Next release: 2026-04-11
Historical Trend
| Date | Value |
|---|---|
| 2026-03 | 2.7% |
| 2026-02 | 3.2% |
| 2026-01 | 3.2% |
| 2025-12 | 3.3% |
| 2025-11 | 3.0% |
| 2025-10 | 2.4% |
| 2025-09 | 1.8% |
| 2025-08 | 1.7% |
| 2025-07 | 2.2% |
What This Means for Business
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.
About PPI
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.
Methodology
The BLS collects approximately 100,000 price quotes monthly from 25,000 producers across mining, manufacturing, agriculture, and services. PPI measures prices at three stages: crude materials, intermediate goods, and finished goods. The finished goods index is most watched.
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Frequently Asked Questions
How does PPI predict consumer inflation?
PPI is a leading indicator because producer cost increases eventually flow through to consumer prices. A typical lag is 3-6 months. If PPI is rising, consumer prices will likely follow as producers pass costs to retailers and retailers pass them to consumers. Falling PPI suggests consumer inflation relief is ahead.