Producer Price Index - Final Demand (Excluding Food and Energy)

Returns the core Producer Price Index (PPI) for final demand, which excludes volatile food and energy prices to show underlying inflation trends.

Data Details

Attribute Value
Source Bureau of Labor Statistics (BLS) / FRED
Frequency Monthly
Unit Index
Excludes Food and energy components

Notes

  • "Core" PPI removes volatile food and energy to reveal underlying trends
  • Preferred by many economists for assessing inflation trajectory
  • Less volatile than headline PPI

Syntax

=ProducerPriceIndexFinalDemandWithoutFoodEnergy()
Excel Desktop (Windows)

Examples

=ProducerPriceIndexFinalDemandWithoutFoodEnergy()
Core PPI
=ProducerPriceIndexFinalDemand()-ProducerPriceIndexFinalDemandWithoutFoodEnergy()
Food & energy contribution

When to Use

  • Analyzing underlying producer inflation
  • Removing food/energy volatility
  • Fed policy analysis
  • Long-term inflation trend analysis

When NOT to Use

Scenario Use Instead
Need headline PPI ProducerPriceIndexFinalDemand()
Need consumer prices ConsumerPriceindex()
Need core CPI ConsumerPriceindexWithoutFoodEnergy()

Common Issues & FAQ

Why exclude food and energy?

Food and energy prices are highly volatile and can mask underlying inflation trends.

Is core PPI higher or lower than headline PPI?

It varies depending on whether food/energy prices are rising or falling relative to other goods.

Is this the same as core CPI?

Similar concept but different measure. Core PPI is producer prices; core CPI is consumer prices.

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MarketXLS Excel Add-in Tutorial - How to Use Producer Price Index - Final Demand (Excluding Food and Energy) and Other Financial Formulas
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