Price Indexes and Their Usage

The CPI for the US covers only urban areas using a household survey, the CPI-U.

The personal consumption expenditures (PCE) price index covers all personal consumption in the US using business surveys.

The producer price index (PPI) reflects the price changes experienced by domestic producers in a country. The PPI can influence the future CPI. In some countries, the PPI is called the wholesale price index (WPI).

The United States’Treasury Inflation-Protected Securities (TIPS) adjusts the bond’s principal according to the US CPI-U index.