Could the primary market measure of inflation switch from the Consumer Price Index (CPI) to the Producer Price Index (PPI)? According to recent research from Citi, the answer is a resounding “yes.”
Revised "producer" statistics includes consumer data
The Bureau of Labor Statistics (BLS) will post a revamped PPI next week, the research note observed. This revised measure of “producer” inflation will capture a much broader sampling of prices received by US businesses by encapsulating prices associated with items produced for government and exports – as well as for consumers and capital spending. It’s the last part of that sentence that is most interesting.
“As a result of the new more comprehensive PPI resemble the consumer price...
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