# Producer Price Index (PPI)

*Macro & Economy — Finicade finance glossary*

The PPI measures prices received by domestic producers — inflation at the factory gate rather than the checkout. It's watched as a leading indicator of consumer inflation, since input costs eventually pass through, though the pass-through is partial and slow because firms absorb some in margins. It's also more volatile than CPI, being weighted towards energy and commodities.

**Also known as:** PPI, producer prices, wholesale price index

**Related terms:** [Consumer Price Index (CPI)](https://finicade.com/glossary/cpi), [Inflation](https://finicade.com/glossary/inflation), [Core Inflation](https://finicade.com/glossary/core-inflation), [Aggregate Supply](https://finicade.com/glossary/aggregate-supply), [Gross Margin](https://finicade.com/glossary/gross-margin)

Source: https://finicade.com/glossary/producer-price-index