Long Term Perspective
Prices will increase or decrease at earlier stages of production before consumers pay more (less) for finished goods. Changes in prices of food and energy products tend to overshadow changes in prices of other goods. Intermediate and crude materials prices jumped in 1999 but price hikes began to moderate in 2000.

Short Term Perspective
Inflation is showing marked improvement at earlier stages of processing. Intermediate goods prices are down modestly from a year ago while crude materials prices are down 25 percent from year ago levels. To some extent, this reflects more favorable news on the energy front.

PPI: Intermediate vs. Crude Materials   •   Excluding Food & Energy Prices: Intermediate vs. Crude   •   CPI vs. PPI - Finished Goods

Excluding Food & Energy Prices : CPI vs. PPI   •   Employment Cost Index vs. Wages & Salaries   •   Alternative Inflation Measures