Australia AUD

Australia PPI YoY

Impact:
Low

Latest Release:

Date:
Surprise:
0.3%
Actual:
3.7%
Forecast: 3.4%
Previous/Revision:
3.7%
Period: Q1

Next Release:

Date:
Forecast: 2.9%
Period: Q2
What Does It Measure?
The Producer Price Index (PPI) measures the average changes in prices received by domestic producers for their output over time, focusing on production costs and pricing trends in the Australian economy. It primarily assesses inflationary pressures at the wholesale level and is indicative of future consumer price inflation, with key indicators including price changes in food, non-food manufacturing, and services.
Frequency
The PPI is released quarterly, with the data typically published around the end of the month following the quarter's conclusion, serving as a preliminary estimate that may be subject to revisions.
Why Do Traders Care?
Traders closely monitor the PPI as it serves as a leading indicator of inflation trends, impacting financial markets by influencing central bank policies; higher-than-expected PPI readings may lead to bullish sentiment in currencies and equities, while weaker readings can exacerbate bearish trends. Additionally, traders use the PPI to make forecasts regarding interest rates and inflation expectations.
What Is It Derived From?
The PPI is derived from a comprehensive survey of producers across various industries in Australia, utilizing data collected through direct reporting from firms and weighting prices of products to reflect their importance in the economy. The index is calculated using a collection of price data that captures a wide array of goods and services, ensuring accurate representation of pricing trends.
Description
The PPI is reported as a Year-over-Year (YoY) figure, comparing current prices to those from the same period in the previous year, which helps eliminate seasonal volatility, allowing a clearer understanding of long-term pricing trends. This measure is preferred over Month-over-Month (MoM) or Quarter-over-Quarter (QoQ) due to its ability to showcase more stable, structural movements in production prices.
Additional Notes
The PPI serves as a coincident economic indicator, offering insights into inflation trends correlated with the broader economic landscape. It can be compared to other measures, such as the Consumer Price Index (CPI), providing a fuller picture of inflation dynamics and influencing economic forecasts globally.
Bullish or Bearish for Currency and Stocks
Higher than expected: Bullish for AUD, Bullish for Stocks. Lower than expected: Bearish for AUD, Bearish for Stocks.

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
3.7%
3.4%
3.7%
0.3%
3.7%
3.6%
3.9%
0.1%
3.9%
3.9%
4.8%
4.8%
4.5%
4.3%
0.3%
4.3%
2.6%
4.1%
1.7%
4.1%
3.7%
3.8%
0.4%
3.8%
2%
3.9%
1.8%
3.9%
2.9%
4.9%
1%
5.2%
5%
5.8%
0.2%
5.8%
5.9%
6.4%
-0.1%
6.4%
6.5%
5.6%
-0.1%
5.6%
5.3%
4.9%
0.3%
4.9%
4%
3.7%
0.9%
3.7%
3.1%
2.9%
0.6%
2.9%
2.5%
2.2%
0.4%
2.2%
3.5%
0.2%
-1.3%
0.2%
0.4%
-0.1%
-0.2%
-0.1%
-0.3%
-0.4%
0.2%
-0.4%
-0.1%
-0.4%
-0.3%
-0.4%
-0.9%
1.3%
0.5%
1.3%
1.3%
1.4%
1.4%
1.4%
1.6%
1.6%
1.8%
2%
-0.2%
2%
1.9%
1.9%
0.1%
1.9%
2%
2%
-0.1%
2%
1.9%
2.1%
0.1%
2.1%
2.2%
1.5%
-0.1%
1.5%
0.7%
1.7%
0.8%
1.7%
1.2%
1.7%
0.5%
1.7%
1.2%
1.6%
0.5%
1.6%
1.9%
1.7%
-0.3%
1.7%
1.2%
1.3%
0.5%
1.3%
1%
0.7%
0.3%
0.7%
0.6%
0.5%
0.1%
0.5%
0.8%
1%
-0.3%
1%
1%
1.2%
1.2%
2.3%
1.9%
-1.1%
1.9%
1.8%
1.7%
0.1%
1.7%
1%
1.1%
0.7%
1.1%
0.33%
0.7%
0.77%
0.7%
0.9%
1.1%
-0.2%