of 2016, the PPI for final demand increased 0.5 percent because the index levels were 109.7 in March 2016 and 109.1 in December 2015. The percent change is calculated as: 109.7 - 109.1 = 0.6 0.6 ÷ 109.1 = 0.005 0.005 × 100 = 0.5 percent Core PPI The Core PPI is the headline PPI excluding high volatility items, such as energy. The more volatile components of the PPI for final demand are food, energy, and trade services. These indexes, including Final demand less foods and energy and Final demand less foods, energy, and trade services, exclude volatility from certain components. How PPI differs from CPI A change in the PPI often anticipates a change in the United States Consumer Price Index (CPI). However, there are times when the CPI exhibits a change of a significantly different magnitude (or direction) compared to the PPI. This is due to the different definition and uses of the two indices. A primary use of the PPI is to deflate revenue streams in order to measure real growth in output. A primary use of the CPI is to adjust income and expenditure streams for changes in the cost of living. Because of these differences, each uses prices from a different set of commodities and services. See also Producer price index Bureau of Labor Statistics Consumer Price Index U.S. Import and Export Price Indices Inflation Substitution FRED (Federal Reserve Economic Data) 2000s commodities boom 2020s commodities boom References External links PPI Homepage PPI Databases Price indices Economy of the United States Bureau of Labor Statistics