      A PPI figure that comes in above estimates is a near-term inflationaryindication and will cause a bearish reaction in both the bond and equitymarkets. When interpreting this indicator, it is important to remember thatthe PPI is also a base 100 index. As an index, it is often reported as anannualized rate. With this interpretation, the variance of the PPI can bequite high. The best way to interpret this indicator is to look at the PPInumber over the past few months and compare. This will give you a muchbetter picture of its relative weight or value.