PPI measures whole sale inflation, whereas CPI measures inflation of consumer goods and services. So with PPI going down, that means producers are paying less for their goods. In turn, it means the consumer pays less for goods and services, which will make CPI drop. PPI is a leading indicator to CPI.

I know there are a few intricacies of what each index specifically measure. But from a high level, is the above correct or am I missing something? Thx!