Producer Price Index (PPI)
Definition: The Producer Price Index (PPI) is a number that shows how the prices of goods (like food, clothes, and machinery) change at the wholesale level. This means it tells us how much producers (the people who make or grow these goods) are charging before they sell them to stores or other businesses.
Usage Instructions: - You typically use "producer price index" when talking about economics, business, or finance. - It is often referenced in discussions about inflation, which is when prices go up over time.
Example: - "The Producer Price Index rose by 2% last month, indicating that manufacturers are charging more for their products."
Advanced Usage: - Economists and analysts might use the PPI to predict future inflation and understand market trends. For instance, if the PPI is increasing significantly, it may suggest that consumers will soon see higher retail prices.
Word Variants: - There are no direct variants of "producer price index," but you might hear similar terms like "Consumer Price Index (CPI)," which measures price changes from the consumer's perspective.
Different Meanings: - The term "producer" can refer to anyone who creates or makes something, not just in the context of prices. For example, a film producer is someone who oversees the making of a movie.
Synonyms: - Wholesale price index - PPI (abbreviation)
Idioms and Phrasal Verbs: - There are no specific idioms or phrasal verbs directly related to "producer price index," but you might encounter phrases like "price hike" (when prices go up suddenly) or "price drop" (when prices go down).