The CPI measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. It provides a snapshot of inflation's impact on the cost of living.
PPI gauges the average change over time in the selling prices received by domestic producers for their output. It provides insights into cost pressures at the production level.
Increases in wages can contribute to inflation, as higher wages may lead to increased consumer spending and rising production costs.
Rising bond yields can signal expectations of higher inflation, as investors demand higher yields to compensate for the eroding purchasing power of money.
Rising commodity prices, such as oil and metals, can contribute to increased production costs and potentially lead to higher consumer prices.