Producer Price Index (Noun)
Meaning
An index of changes in wholesale prices.
Classification
Nouns denoting communicative processes and contents.
Examples
- The producer price index is a key indicator of inflationary pressures in the economy, as it measures the prices of goods and services at the wholesale level.
- The central bank closely monitors the producer price index to gauge the potential impact of monetary policy on inflation.
- A significant increase in the producer price index can lead to higher consumer prices, as businesses pass on the increased costs to their customers.
- The producer price index is often used as a leading indicator of future inflation, as changes in wholesale prices can precede changes in consumer prices.
- Economists use the producer price index to analyze the impact of external shocks, such as changes in global commodity prices, on the domestic economy.