Because increases in input prices eventually make it to consumers when they buy the final product, the PPI:

Name: Because increases in input prices eventually make it to consumers when they buy the final product, the PPI:
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Question

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The PPI measures the average change over time in the selling prices received by domestic producers for their output. Because input prices eventually make it to consumers when they buy the final product, the PPI is considered a good predictor of future consumer prices.

Because Increases in Input Prices Eventually Make It to Consumers