The consumer price index (CPI)and the producer price index (PPI)must always move in sync with each other.

Question

Quizplus · Accepted Answer

The CPI and PPI may move in the same direction at times, but they are not always synchronized. The CPI measures the average change in prices of goods and services purchased by consumers, while the PPI measures the average change in prices received by producers for their goods and services. The factors affecting these two indexes can differ, such as changes in supply and demand, production costs, and government policies. Additionally, the weights assigned to different products and industries in each index can also vary. Therefore, it is possible for the CPI and PPI to move in different directions or at different rates.

The Consumer Price Index (CPI)and the Producer Price Index (PPI)must