Why the Federal Reserve shouldn't care about PPI

ARTICLE - Every month, the producer price index is touted as the first peek at inflation, followed in short order by the consumer price index.

If inflation is defined as a rise in the price level -- the price level being the prices consumers pay -- is the PPI really a guide to the CPI, either in that month or on a longer-term basis?

The intuitive appeal of the linkage is obvious: an increase in the price of an input material will raise the cost of production, causing the producer to raise the

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