Wholesale Inflation Dip Surprise

September 15, 2025 

The Producer Price Index from the US Bureau of Labor Statistics was a bit of a surprise last week. The wholesale price index fell both on a year-on-year and monthly basis. Both readings were a surprise to the downside as many analysts were anticipating increases. The Producer Price Index (PPI) measures the average change over time in the selling prices received by domestic producers for their output. The prices included in the PPI are from the first commercial transaction for many products and some services.

PPI is considered a leading indicator because it measures price changes from the producers' perspective, before costs are passed on to consumers. The Federal Reserve uses PPI when making decisions about monetary policy including interest rates.