Inflation Reports (CPI, PPI)

About

Inflation reports, such as the Consumer Price Index (CPI) and Producer Price Index (PPI), are crucial economic indicators used to assess price stability and inform monetary policy. The CPI measures the average change in prices of a basket of goods and services purchased by urban consumers, reflecting the cost of living for households. It includes items like food, housing, and apparel, and is often used for cost-of-living adjustments in contracts. The PPI, on the other hand, measures the average change in prices received by domestic producers for their output, reflecting wholesale inflation. It is used to predict future inflation and adjust contract prices. Both indexes are published by the Bureau of Labor Statistics and are closely monitored by policymakers to gauge inflation trends and make informed decisions about economic stability.