Definition
The Producer Price Index with its most volatile parts taken out: food, energy and trade services.
The story
A spike in diesel or a jump in egg prices can swing PPI (Producer Price Index) for one month without saying much about the bigger picture. Strip those out and you see whether businesses are steadily charging more for everything else.
Why markets watch it
Like core CPI (Consumer Price Index), it shows the underlying trend in prices businesses charge.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms