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    CPI vs PPI

    The Producer Price Index (PPI) measures prices received by domestic producers. Changes in PPI often show up in CPI several months later — making PPI a leading indicator of consumer inflation.

    CPIAUCSL
    CPI
    330.29 · Mar 2026
    vs
    PPIACO
    PPI (All Commodities)
    Year-over-Year %
    Feb 17Dec 17Nov 18Oct 19Sep 20Jul 21May 22Apr 23Mar 24Feb 25Mar 260.0%3.0%6.0%9.0%12.0%
    • CPI
    • PPI (All Commodities)

    When producer costs rise — raw materials, intermediate goods, wholesale prices — businesses usually pass at least part of the increase through to consumers over the following months. PPI therefore moves before CPI in most inflation cycles, though the size and speed of the pass-through vary with pricing power and demand conditions.

    The 2021–22 inflation surge made this visible in real time. All-commodity PPI peaked above 20% year-over-year in mid-2022; CPI peaked at 9.1% a month or two later. As goods inflation cooled in late 2022, PPI turned negative year-over-year before CPI did. In demand-driven cycles the lead can be short; in supply-driven cycles it tends to be longer.

    PPI is published monthly by the BLS. The headline index covers final-demand goods and services; sub-indexes break out intermediate and crude goods, which tend to move first and offer the earliest read on cost pressure in the pipeline.

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