Producer price index
The change in prices charged by producers — before the goods reach a shop counter.
How to read the number
It runs ahead of consumer prices: dearer raw materials and components reach retail some months later, provided businesses manage to pass the cost on.
When the metric lies
The pass-through is neither complete nor dependable. In a competitive segment the seller absorbs the rise in its own margin and the consumer index never records it.
Also known as: producer prices