The Producer Price Index (PPI) measures the average change over time in the selling prices received by domestic producers for their output. It reflects price changes from the perspective of the seller and is an important indicator of inflation at the wholesale level. The PPI covers various industries, including manufacturing, agriculture, and services. The PPI is used by economists, businesses, and policymakers to assess price trends and make informed decisions. A rising PPI may indicate increasing production costs, which can eventually lead to higher prices for consumers. It is often compared with the Consumer Price Index (CPI), which measures price changes from the consumer's perspective.