Supply Chain Prompt

Producer Price Index (PPI): A measurement tool compiled by the U.S. Bureau of Labor Statistics reflecting the average change in prices charged by producers during a given time period, compared to those charged in a base year. The PPI measures inflation at earlier stages of the production and marketing process than does the Consumer Price Index.


Consumer Price Index (CPI): Compiled by the U.S. Bureau of labor Statistics, the CPI is a monthly measure of changes in the prices paid for goods and services by urban consumers. The relative importance given to individual items in the index's basket is based on periodic surveys of consumer expenditures. The CPI is computed for a nation as a whole, for each of seventeen large metropolitan areas, for individual items, and for commodity and service groupings. It is commonly used a a measure for inflation.


Sorry for the economics lesson, but your suppliers look at these numbers all of the time to figure out your pricing. You need to be aware of them.



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