Concept guide · Growth & Inflation
Consumer Price Index vs Producer Price Index
Separate consumer inflation, producer-price changes and the limits of reading one price series.
What the measures represent
CPI tracks prices paid by households for a defined basket of goods and services. PPI tracks selling-price changes received by domestic producers. Their populations, weights and measurement methods differ.
Interpreting a release
Compare headline versus core, monthly versus year-on-year, seasonal adjustment and revision status. A producer-price increase does not translate one-for-one into consumer inflation.
Market transmission
Unexpected inflation persistence can affect bond yields and monetary-policy expectations; stronger nominal revenue does not necessarily mean higher real profits.