What is the PPI and the CPI?

Tom Gentile

Posted in

By: Tom Gentile
October 10th, 2022

3 mins read

These two key economic pieces of data are due out this week and if the markets react like they did the last time they were reported it will be a volatile week!

PPI: Producer Price Index

This report is due out Wednesday.

The PPI is a grouping of indexes that measures the average change over time in selling prices received by domestic producers of goods and services. It measures price change from the perspective of the seller.

 There are three main PPI classification structures which draw from the same pool of price information provided to the BLS by cooperating company reporters:

  1. Industry classification. A Producer Price Index for an industry is a measure of changes in prices received for the industry’s output sold outside the industry
  2. Commodity classification. The commodity classification structure of the PPI organizes products and services by similarity or material composition
  3. Commodity-based Final Demand-Intermediate Demand (FD-ID) System, which regroup commodity indexes for goods, services, and construction

CPI: Consumer Price Index

This report is due out Thursday.

The CPI is different from the PPI in that it measures price change from the purchaser’s perspective.

One can read up more about these reports on www.investopedia.com. They have solid info on what they are and what they mean and help you in your research on assessing what you anticipate from the markets.

The CPI measures the monthly change in prices paid by U.S. consumers.

The Bureau of Labor Statistics (BLS) calculates the CPI as a weighted average of prices for a basket of goods and services based on U.S. consumer spending.

Other Economic Items the Week of October 10-14, 2022

Two other economic items of note due to come out this week are 1) The release of the last Fed meetings minutes and 2) Retail Sales data.

The release of the minutes from the last Fed meeting should provide more insight  on their inflation outlook, as well which members’ expressed their policy biases and what they are.

Remember what they did last time they met was downgrade GDP and employment forecasts at the same time they upped their inflation estimates. Let’s see what clarity the minutes offer towards these concerns and what investors do with their money after getting said clarity.

On Friday, retail sales numbers are going to be reported.

Options Trading?

One can let this week’s batch of data play out and refrain from trying to place any options trades or, if one anticipates the data once reported confirms their directional bias for both them and their broker maybe they pursue an options trade then.

For us, we look to our scans and are always open for an options trade once we gain a greater conviction for market direction.

App: Toms Option Tools

Toms Option Tools scan the markets for bullish and bearish trade opportunities using our proprietary scans and strategy algorithms. TTR Darknet finds bullish entries based on triple stack channel collisions. Money Calendar identifies seasonal patterns with at least 90% accuracy looking back 10 years. Weekly Cash Clock finds short term opportunities that last a week on average. Microcurrency Trader applies Darknet technology and moving averages to cryptocurrencies. Velocity Trader utilizes volume spike and Velocity indicators on custom stock lists. Quantum Scripts scans the markets for momentum acceleration signals and employs Quantum noise filters. Optimal Trader finds directional pre-earnings opportunities that are optimized for entry date, stock movement, and volatility surge. My Trades tracks the profit/loss of your trades, displays stock charts and risk graphs, creates new trades, and edits existing trades. Morning Report provides top 10 option rankings in 6 categories each day.


Stock and options trading has large potential rewards, but also large potential risk.

You must be aware of the risks and be willing to accept them in order to invest in the stock and options market. Do not trade with money you cannot afford to lose.

This is neither an offer to buy/sell/ or recommend a particular stock or option.

Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been actually executed, the results may have under or overcompensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with hindsight.

No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

Disclaimer of Warranties and Liabilities Tom Gentile and TomsTradingRoom, LLC including employees, consultants, and editors (“Publisher”) cannot and do not warrant the completeness or accuracy of the content found in our areas, or its usefulness for any particular purpose.

Tom Gentile and TomsTradingRoom, LLC also make no promises that our content or the service itself will be delivered to you uninterrupted, timely, secure, or error-free. Under no circumstances will Tom Gentile and TomsTradingRoom, LLC be liable for direct, indirect, incidental, or any other type of damages resulting from your use or downloading of any content on our site.

This includes, but is in no way limited to, loss or injury caused in whole or in part by our negligence or by anything beyond our control in creating or delivering any portion of Tom Gentile and TomsTradingRoom, LLC.

You are agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that Tom Gentile and TomsTradingRoom, LLC will not be liable for any I, investment decision made, or action taken by you, or others based upon reliance on news, information, or any other material published by Tom Gentile and TomsTradingRoom, LLC.

Tom Gentile and TomsTradingRoom, LLC relies on various sources of information that we believe to be accurate and reliable. However, we make no claims or representations as to the accuracy, completeness, or truth of any material contained on our site.

Tom Gentile and TomsTradingRoom, LLC are educational portals, providing content for educational and informational purposes only. Neither Tom Gentile nor TomsTradingRoom, LLC are a broker/dealer. Investors need a broker to trade stocks and options and must meet certain requirements. All securities, futures, and investments data and ideas are offered to self-directed investors. All prices in USD unless noted otherwise.

A full disclaimer can be found here:  http://www.tomgentile.com/legal_disclaimers.html.

Sign Up Now for Free Education!