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CPI vs PPI Picker
Answer a couple of questions about what the clause is tracking and get whether to use CPI or PPI, and the specific series family.
What is this clause actually tracking?
Picks the index family. The product wires the chosen series in and keeps it fed automatically.
Related reading: Should a price escalation clause use the CPI or the PPI?.
CPI vs PPI Picker, explained
Should a price escalation clause use CPI or PPI?
PPI measures what producers receive for an input, close to actual production cost: the right choice for most materials and component contracts. CPI measures what consumers pay at retail, layering on distribution and margin: it fits labour cost-of-living escalators and consumer-facing service contracts, not production-cost tracking.