Abbreviation of producer price index. A measure of changes in the price of a basket of goods and services sold by manufacturers and producers in the wholesale market. Sometimes referred to as factory gate or wholesale price inflation, PPI is a measure of inflation from the point of view of producers or sellers as opposed to a retail or consumer price index which measure it from the point of view of consumers. PPI changes often foreshadow changes in consumer inflation.

See also: RPI, CPI, Core Inflation