China CNY

China PPI YoY

Impact:
Medium

Latest Release:

Date:
Surprise:
-0.1%
| CNY
Actual:
-2.7%
Forecast: -2.6%
Previous/Revision:
-2.5%
Period: Apr

Next Release:

Date:
Forecast: -2.6%
Period: May
What Does It Measure?
The Producer Price Index (PPI) measures the average change over time in the selling prices received by domestic producers for their output. It focuses primarily on production and inflation by assessing the prices of goods at the wholesale level, covering key areas such as manufacturing, agriculture, and mining.
Frequency
The PPI is released on a monthly basis, with the typical release occurring around the 9th to 15th day of the following month, providing preliminary data that often gets revised later.
Why Do Traders Care?
The PPI is significant for traders as it serves as an indicator of inflationary pressures within the economy, influencing expectations for monetary policy and affecting various financial markets. A higher-than-expected PPI reading can strengthen the Chinese yuan (CNY) and boost equity markets, while lower readings may have the opposite effect.
What Is It Derived From?
The PPI is calculated based on a survey of approximately 3,500 enterprises in China, covering various industries to capture price changes in goods before they reach consumers. It utilizes a weighting system that reflects the relative importance of different industries and tracks changes in prices through a diffusion index methodology.
Description
The PPI is often reported as a Year-over-Year (YoY) percentage change, comparing current prices to those from the same month in the previous year. This method helps to eliminate seasonal effects and provides a clearer understanding of long-term price trends, making it easier for traders to identify structural changes in the economy.
Additional Notes
The PPI is considered a leading indicator of consumer price inflation and can also serve as a coincident economic measure. Its relationship with other indicators, such as the Consumer Price Index (CPI), is crucial for gauging economic health, as rising producer prices can eventually translate into higher consumer prices.
Bullish or Bearish for Currency and Stocks
Higher than expected: Bullish for CNY, Bullish for Stocks. Lower than expected: Bearish for CNY, Bearish for Stocks. Bearish tone: Signaling lower inflation concerns, usually good for the Currency but bad for Stocks due to lower anticipated earnings growth.

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
-2.7%
-2.6%
-2.5%
-0.1%
-2.5%
-2.3%
-2.2%
-0.2%
-2.2%
-2.1%
-2.3%
-0.1%
-2.3%
-2.1%
-2.3%
-0.2%
-2.3%
-2.3%
-2.5%
-2.5%
-2.8%
-2.9%
0.3%
-2.9%
-2.5%
-2.8%
-0.4%
-2.8%
-2.5%
-1.8%
-0.3%
-1.8%
-1.4%
-0.8%
-0.4%
-0.8%
-0.9%
-0.8%
0.1%
-0.8%
-0.8%
-1.4%
-1.4%
-1.5%
-2.5%
0.1%
-2.5%
-2.3%
-2.8%
-0.2%
-2.8%
-2.8%
-2.7%
-2.7%
-2.5%
-2.5%
-0.2%
-2.5%
-2.6%
-2.7%
0.1%
-2.7%
-2.6%
-3%
-0.1%
-3%
-2.8%
-2.6%
-0.2%
-2.6%
-2.7%
-2.5%
0.1%
-2.5%
-2.4%
-3%
-0.1%
-3%
-3%
-4.4%
-4.4%
-4.1%
-5.4%
-0.3%
-5.4%
-5%
-4.6%
-0.4%
-4.6%
-4.3%
-3.6%
-0.3%
-3.6%
-3.2%
-2.5%
-0.4%
-2.5%
-2.5%
-1.4%
-1.4%
-1.3%
-0.8%
-0.1%
-0.8%
-0.5%
-0.7%
-0.3%
-0.7%
-0.1%
-1.3%
-0.6%
-1.3%
-1.4%
-1.3%
0.1%
-1.3%
-1.5%
0.9%
0.2%
0.9%
1%
2.3%
-0.1%
2.3%
3.1%
4.2%
-0.8%
4.2%
4.8%
6.1%
-0.6%
6.1%
6%
6.4%
0.1%
6.4%
6.4%
8%
8%
7.7%
8.3%
0.3%
8.3%
7.9%
8.8%
0.4%
8.8%
8.7%
9.1%
0.1%
9.1%
9.5%
10.3%
-0.4%
10.3%
11.1%
12.9%
-0.8%
12.9%
12.4%
13.5%
0.5%
13.5%
12.4%
10.7%
1.1%
10.7%
10.5%
9.5%
0.2%
9.5%
9%
9%
0.5%
9%
8.8%
8.8%
0.2%
8.8%
8.8%
9%
9%
8.5%
6.8%
0.5%
6.8%
6.5%
4.4%
0.3%
4.4%
3.5%
1.7%
0.9%
1.7%
1.5%
0.3%
0.2%
0.3%
0.4%
-0.4%
-0.1%
-0.4%
-0.8%
-1.5%
0.4%
-1.5%
-1.8%
-2.1%
0.3%
-2.1%
-2%
-2.1%
-0.1%
-2.1%
-1.8%
-2%
-0.3%
-2%
-2%
-2.4%
-2.4%
-2.5%
-3%
0.1%
-3%
-3.2%
-3.7%
0.2%
-3.7%
-3.3%
-3.1%
-0.4%
-3.1%
-2.6%
-1.5%
-0.5%
-1.5%
-1.1%
-0.4%
-0.4%
-0.4%
-0.3%
0.1%
-0.1%
0.1%
0.1%
-0.5%
-0.5%
-0.4%
-1.4%
-0.1%
-1.4%
-1.5%
-1.6%
0.1%
-1.6%
-1.5%
-1.2%
-0.1%
-1.2%
-1.2%
-0.8%
-0.8%
-0.9%
-0.3%
0.1%
-0.3%
-0.1%
0%
-0.2%
0%
0.3%
0.6%
-0.3%
0.6%
0.6%
0.9%
0.9%
0.6%
0.4%
0.3%
0.4%
0.4%
0.1%
0.1%
0.2%
0.1%
-0.1%
0.1%
0.2%
0.9%
-0.1%
0.9%
1.6%
2.7%
-0.7%
2.7%
2.7%
3.3%
3.3%
3.3%
3.6%
3.6%
3.5%
4.1%
0.1%
4.1%
4%
4.6%
0.1%
4.6%
4.4%
4.7%
0.2%
4.7%
4.5%
4.1%
0.2%
4.1%
3.9%
3.4%
0.2%
3.4%
3.5%
3.1%
-0.1%
3.1%
3.2%
3.7%
-0.1%
3.7%
3.8%
4.3%
-0.1%
4.3%
4.4%
4.9%
-0.1%
4.9%
1.9%
5.8%
3%
5.8%
5.9%
6.9%
-0.1%
6.9%
6.6%
6.9%
0.3%
6.9%
6.3%
6.3%
0.6%
6.3%
5.6%
5.5%
0.7%
5.5%
5.5%
5.5%
5.5%
5.5%
5.5%
5.5%
5.7%
6.4%
-0.2%
6.4%
6.9%
7.6%
-0.5%
7.6%
7.6%
7.8%
7.8%
7.7%
6.9%
0.1%
6.9%
6.3%
5.5%
0.6%
5.5%
4.5%
3.3%
1%
3.3%
2.2%
1.2%
1.1%
1.2%
0.8%
0.1%
0.4%
0.1%
-0.3%
-0.8%
0.4%
-0.8%
-0.9%
-1.7%
0.1%
-1.7%
-2%
-2.6%
0.3%
- 2.6%
-2.5%
-2.8%
-2.8%
-3.3%
-3.4%
0.5%
-3.4%
-3.8%
-4.3%
0.4%
-4.3%
-4.6%
-4.9%
0.3%
-4.9%
-4.9%
-5.3%
-5.3%
-5.4%
-5.9%
0.1%
-5.9%
-5.8%
-5.9%
-0.1%
-5.9%
-5.9%
-5.9%
-5.9%
-5.8%
-5.9%
-0.1%
-5.9%
-5.9%
-5.9%
-5.9%
-5.5%
-5.4%
-0.4%
-5.4%
-5%
-4.8%
-0.4%
-4.8%
-4.5%
-4.6%
-0.3%
-4.6%
-4.5%
-4.6%
-0.1%
-4.6%
-4.4%
-4.6%
-0.2%