United States USD

United States PPI Ex Food, Energy and Trade MoM Final

Impact:
Low
Source: U.S. Department of Labor

Latest Release:

Date:
Actual:
0.2%
Forecast: 0.2%
Previous/Revision:
0%
Period: Dec
What Does It Measure?
The Producer Price Index (PPI) Ex Food, Energy, and Trade measures the average change over time in the selling prices received by domestic producers for their output, excluding volatile categories such as food and energy. It primarily focuses on inflationary pressures in production and is used as a key indicator of future consumer price trends.
Frequency
The PPI Ex Food, Energy, and Trade is released monthly, with the data being presented as a final figure that reflects the most accurate assessment after corrections and revisions.
Why Do Traders Care?
Traders closely monitor the PPI Ex Food, Energy, and Trade index because it serves as a forward-looking indicator of inflation, influencing monetary policy and impacting various financial markets. A higher-than-expected PPI can lead to bullish sentiment for currencies and stocks due to perceived economic strength, while lower figures may provoke bearish reactions as they suggest weakening price pressures.
What Is It Derived From?
This index is derived from a survey of prices collected from a vast array of industries, which includes data from manufacturers, farmers, and service providers. It employs a weighted average calculation based on the dollar value of goods produced, providing a comprehensive view of price changes across different sectors.
Description
The Producer Price Index Ex Food, Energy, and Trade provides crucial insights into underlying inflation trends by stripping out the most volatile components that can distort price movements. This measure is utilized by economists and traders to gauge future consumer price index adjustments and to assess the overall health of the economy.
Additional Notes
The PPI Ex Food, Energy, and Trade is considered a leading economic indicator since it can signal future inflation trends before they materialize in consumer prices. It is often compared with other inflation measures such as the Consumer Price Index (CPI) to provide an informed view of price stability within the economy.
Bullish or Bearish for Currency and Stocks
Higher than expected: Bullish for USD, Bullish for Stocks. Lower than expected: Bearish for USD, Bearish for Stocks. A dovish tone: Signaling lower interest rates or economic support, is usually good for the Currency but bad for Stocks due to cheaper borrowing costs.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number Better than forecast for the currency (or previous revise better)
Red Number Worse than forecast for the currency (or previous revise better)
Hawkish Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish Favors lower rates to boost growth, weakening the currency but lifting stocks.
Date Time Actual Forecast Previous Surprise
Feb 14, 2024
0.2%
 0.2%
0%