What "producer price index" means in finance

Producer Price Index (PPI) is a measurement of the average change over time in the selling prices received by domestic producers for their goods and services. It is a measure of the average changes in prices of goods and services that businesses receive for their products, excluding retail and intermediate-level products. PPI is used as a leading economic indicator to gauge inflationary pressures on manufacturers and producers. The index is released monthly by the Bureau of Labor Statistics (BLS).