US Core PPI MoM

A monthly measure of U.S. producer-price inflation excluding volatile components, used to assess pipeline inflation pressure.

Economic IndicatorsHigh volatilityCore Producer Price IndexUS core wholesale inflationPPI excluding food and energyPPI

Full explanation

US Core PPI MoM measures the monthly change in prices received by domestic producers, excluding the more volatile food and energy components. It is a producer-level inflation measure, so it looks at price pressure earlier in the supply chain than consumer inflation data. The Bureau of Labor Statistics publishes Producer Price Index data for final demand and related special groupings, including measures that exclude food, energy and other volatile components. Calendar labels may use “core PPI” as shorthand, so traders should check whether the referenced series excludes only food and energy or also excludes trade services.

Why traders watch it

Traders watch Core PPI because producer-price pressure can feed into inflation expectations, Treasury yields, Federal Reserve policy pricing and the U.S. dollar, especially when it differs sharply from consensus forecasts.

Stronger vs weaker outcomes

A stronger-than-expected reading could possibly suggest firmer pipeline inflation and support expectations for tighter policy or higher rates. A weaker-than-expected reading could possibly point to softer upstream price pressure, depending on revisions and the details of goods and services prices.

Typical volatility

High. PPI can be volatile, is often revised, and does not translate one-for-one into CPI because firms may absorb or delay cost changes. The exact “core” definition used by a data vendor should be verified against the underlying BLS series.

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