producer price index

producer price index definition - business

producer price index

A comprehensive index of price changes at the wholesale level. Because wholesale price changes eventually find their way into consumer prices, the producer price index is closely watched as an early indicator of future retail price changes. Also called price index; Formerly called wholesale price index. Compare consumer price index. See also GDP deflator.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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