The index that measures average changes over time in prices received by domestic producers for their output is the Producer Price Index, or PPI.
The PPI tracks prices from the seller’s perspective, before products reach consumers. It can cover goods, services, construction, mining, agriculture, utilities, and other domestic production. In the United States, the Bureau of Labor Statistics compiles the index from thousands of establishments and price quotations.
The PPI is often compared with the Consumer Price Index. The CPI measures prices paid by households, whereas the PPI measures prices received by producers. The GDP deflator covers prices of domestically produced final goods and services across the economy, while the Import Price Index focuses on imported products.
A rise in producer prices can signal cost pressures that may eventually pass through supply chains to businesses and consumers, although producers may also absorb costs or change their margins instead.