The Consumer Price Index (CPI) is an average for the cost of goods to consumers that determines inflation or the relative value of currency. The Producer Price Index (PPI) is an average of prices received by domestic producers. Throughout the 60s, 70s, and 80s, PPI and CPI were similar. The spread between the two—CPI minus PPI—hovered around zero.
Current CPI-PPI Spread Lowest in Decades
Current CPI-PPI Spread Lowest in Decades
Current CPI-PPI Spread Lowest in Decades
The Consumer Price Index (CPI) is an average for the cost of goods to consumers that determines inflation or the relative value of currency. The Producer Price Index (PPI) is an average of prices received by domestic producers. Throughout the 60s, 70s, and 80s, PPI and CPI were similar. The spread between the two—CPI minus PPI—hovered around zero.