The Consumer Price Index and the Producer Price Index must always move in sync with each other.

Question

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The Consumer Price Index (CPI) measures the changes in prices of goods and services purchased by consumers, while the Producer Price Index (PPI) measures the changes in prices of goods and services sold by producers. These two indices may move in opposite directions due to factors such as changes in supply and demand, production costs, and market competition. Therefore, they do not always move in sync with each other.

The Consumer Price Index and the Producer Price Index Must