Yeah but it’s complex.
PPI measures what producers are paid, versus CPI which is what consumers pay.
PPI decrease means the raw material cost at the producer level is getting cheaper. Their prices should be reflected in CPI in future months.
Also means any inflation at the CPI level are likely due to corporate greed, taxes, import prices, etc. This makes it more clear on how to attack inflation with monitory policy or not.
$2 PARTY, page-4096
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