Long Term Perspective
The PPI for finished goods has expanded more rapidly than the CPI on a year-over-year basis throughout 2000 but this pattern reversed in 2001 and 2002. This isn't unusual from an historical perspective when prices of volatile goods such as food and energy are the primary culprits of the price hike. That was the case in 2000. In 2001, the PPI fell more than the CPI because energy prices were falling, and they carried a more heavy weight in the PPI.

Short Term Perspective
On a year-over-year basis, the PPI finally posted a gain in October due to a variety of special factors, including accelerating energy and food prices as well as motor vehicle prices. The CPI also accelerated in October, but didn't feel all the impacts of higher prices coming from the PPI. Inflation trends are still friendly.

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