Trader's Glossary

PPI (Producer Price Index)

This is a leading economic indicator which tracks the changing prices of goods and services sold by producers on a monthly basis. PPI is an important indicator of consumer inflation as higher prices charged by producers will ordinarily be passed on to the consumer. When this report is released before CPI (consumer price index) it will have more of a market impact due to the two reports being highly correlated. A PPI figure that is higher than forecast will tend to have a positive effect on the value of the currency in question.