US Processed goods less energy Producer Price Index (PPI)

Understanding US Processed goods less energy Producer Price Index (PPI)

All processed goods for intermediate demand, except energy products, are grouped into this index. Foods and animal feeds remain in the basket, along with materials, components, and various other industrial inputs. Consequently, the scope is broader than the group excluding both food and energy, but less directly exposed to fuel fluctuations than total processed goods. It also excludes services and intermediate construction activities.

Excluding energy helps highlight more dispersed price pressures, though it does not render the series a completely stable measure since food and other materials can still experience sharp volatility. Year-on-year comparisons are suitable for assessing underlying trends; month-on-month comparisons help detect price increases spreading to production materials. Monthly series may be revised in newly published periods. When reference periods or weights change, attention should focus on rates of change rather than direct level comparisons across distant periods.