While Wednesday brought new consumer price index numbers, Thursday came with the latest producer price index reading from the Bureau of Labor Statistics. That measure, reflecting what wholesalers are paying, came in at 6.5% year over year, the highest since November 2022. And if what sellers are paying is up, consumer prices could be headed in that direction, too.Cara McDaniel is a professor of economics at Arizona State University. She joined “Marketplace” host Kai Ryssdal to explain how the two measures relate and how economists are using them to predict what comes next. To hear their conversation, press the play button.
Wholesale inflation is up to 6.5%, which may raise consumer prices down the line
The correlation between producer prices and consumer prices is not perfect, but what wholesalers pay has downstream effects.
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