Commodity vs Finished Goods PPI

PPI All Commodities minus PPI Final Demand — the cost-push pressure building in the production pipeline. A large positive spread signals inflation building upstream that will reach consumers 2–6 months later; negative signals commodity deflation cushioning final prices. Led US CPI by ~6 months in both the 2021–22 surge and 2022–23 disinflation.

This indicator is computed by MacroLab from two FRED series: PPIACO minus PPIFID. Both input series are sourced from the Federal Reserve Economic Data (FRED) database.