Long Term Perspective
After removing volatile food and energy prices, the PPI is rising more slowly than the CPI on a year-over-year basis. One factor to keep in mind is that the CPI primarily consists of services, which accelerated in the first part of 2001, while the PPI consists of goods only.

Short Term Perspective
Excluding the volatile components, the CPI has improved on a year-over-year basis. This could be due to improvement in the service component, which covers nearly 60 percent of the total CPI. In contrast, the core PPI increased in October after declining for three straight months. Special factors were the culprits; these aren't predicted to be repeated in November.

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