## Overview The **Producer Price Index (PPI)** is an official economic indicator published by the U.S. Bureau of Labor Statistics (BLS) that measures the average change over time in the selling prices received by domestic producers for their output[1][4][8]. Unlike the Consumer Price Index (CPI), which tracks retail price changes from the consumer’s perspective, the PPI focuses on price movements at earlier stages of production—reflecting what producers receive for goods, services, and construction sold for personal consumption, capital investment, government use, and export[1][2]. This makes the PPI a leading indicator of inflationary pressures in the economy, closely watched by businesses, policymakers, and investors for clues about future consumer price trends[5][9]. ## History The origins of the PPI date back to 1891, when a U.S. Senate resolution authorized an investigation into the effects of tariff laws on domestic production and prices[1]. Originally known as the Wholesale Price Index (WPI), it was renamed the Producer Price Index in 1978 to better reflect its expanded scope beyond wholesale goods[1]. The BLS has since refined its methodology, broadening coverage to include virtually every industry in the goods-producing sector and a significant portion of the service sector[1][4]. ## Key Achievements and Methodology The PPI program is notable for its comprehensive coverage, publishing about 10,000 individual product and group indexes each month, based on a voluntary survey of over 16,000 establishments providing roughly 64,000 price quotations[4]. Industries and products are systematically resampled to adapt to changing market conditions, ensuring the index remains relevant[4]. The PPI’s structure includes indexes for final demand, intermediate demand, and commodity groupings, providing granular insights into price movements across the economy[1][4]. ## Current Status Today, the PPI is one of the oldest and most respected economic time series in the Unite