alt Hacker NewsCPI vs PPI, in case you’re curious like me …
CPI tracks retail costs and the cost of living, whereas PPI tracks wholesale costs. As such, PPI acts as an early indicator of future consumer inflation.
CPI vs PPI, in case you’re curious like me …
CPI tracks retail costs and the cost of living, whereas PPI tracks wholesale costs. As such, PPI acts as an early indicator of future consumer inflation.
More precisely, CPI tracks what you buy. Even if it’s imported. PPI tracks what’s produced here, even if for export.
There is a fun Canadian paper on how they started intensely decoupling after 2001, alongside the rise of global multi-step supply chains [1].
[1] https://www.econstor.eu/bitstream/10419/261258/1/swp2022-05....