Inflation Rates (CPI/PPI)
Tracking the rising cost of living and production.
Inflation measures the rate at which the rising level of prices for goods and services is eroding the purchasing power of a currency. The two main indices used are the Consumer Price Index (CPI) and the Producer Price Index (PPI).
CPI vs. PPI
- CPI: Measures price changes from the perspective of the consumer.
- PPI: Measures price changes from the perspective of the seller (producer).
Inflationary Pressures
- High inflation can erode purchasing power.
- Central banks raise rates to fight high inflation.
- Erodes purchasing power over time.
Key Takeaways
CPI tracks consumer goods; PPI tracks wholesale costs.
Central banks raise rates to fight high inflation.
Erodes purchasing power over time.
Related Terms
Inflation Rates (CPI/PPI)
Tracking the rising cost of living and production.
Inflation measures the rate at which the rising level of prices for goods and services is eroding the purchasing power of a currency. The two main indices used are the Consumer Price Index (CPI) and the Producer Price Index (PPI).
Table of Contents
CPI vs. PPI
- CPI: Measures price changes from the perspective of the consumer.
- PPI: Measures price changes from the perspective of the seller (producer).
Inflationary Pressures
- High inflation can erode purchasing power.
- Central banks raise rates to fight high inflation.
- Erodes purchasing power over time.
Key Takeaways
CPI tracks consumer goods; PPI tracks wholesale costs.
Central banks raise rates to fight high inflation.
Erodes purchasing power over time.
Related Terms
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