The Producer Price Index (PPI) is a metric used to measure and analyze changes in the prices of goods and services sold by producers. It is a prevailing measure of inflation, helping businesses make more informed decisions about pricing and procurement strategies. The PPI takes into account the cost of raw materials, labor, overhead, and other factors in the production process. It serves as a valuable tool for analyzing overall market trends and evaluating price movements over time. By utilizing the Producer Price Index, businesses can stay ahead of inflationary pressures and make better-informed decisions about their supply chains and pricing strategies.