An
index tracking the
price of goods
bought and
sold in bulk before they reach the
retail level. The producer price index usually tracks changes in these prices on a monthly basis. A large change in producer prices can lead to a change in retail prices, which affects consumers most directly. As a result, a few countries use the producer price index as a measure of
inflation, but most do not. A dramatic increase in producer prices, however, may be seen as an early
indicator of inflation. It is also called the wholesale price index.