Switzerland CHF

Switzerland PPI MoM

Impact:
Low

Latest Release:

Date:
Surprise:
-0.3%
Actual:
-0.7%
Forecast: -0.4%
Previous/Revision:
-0.3%
Period: Aug
What Does It Measure?
The Producer Price Index (PPI) measures the average changes in prices received by domestic producers for their output over time, specifically focusing on the wholesale level. It assesses key components such as raw materials, intermediate goods, and finished products and serves as an indicator of inflationary trends within the Swiss economy.
Frequency
The PPI is released on a monthly basis, with the data typically published in the middle of each month and often reported as a preliminary estimate.
Why Do Traders Care?
Traders pay close attention to the PPI as it serves as a leading indicator of inflation pressures which can influence central bank policies, affecting interest rates and overall economic sentiment. Higher-than-expected PPI readings may indicate rising inflation, leading to a bullish outlook for the Swiss franc (CHF) and affecting equity markets positively, while lower readings could suggest economic weakness and have a bearish effect.
What Is It Derived From?
The PPI is derived from a survey of prices collected from a sample of manufacturers, wholesalers, and service providers in Switzerland. It utilizes various methodologies, including collecting data on price changes for a range of products and services to compute monthly changes using a weighted average approach.
Description
The PPI measures the average change in prices that producers receive for their goods, highlighting price movements at the wholesale level and excluding taxes. It reflects the cost pressures experienced by producers and is important for economists and investors as it provides indications of inflation trends and economic health.
Additional Notes
The PPI is considered a leading economic indicator, as it can foreshadow consumer inflation trends and is closely watched in conjunction with other indicators like the Consumer Price Index (CPI). It can reveal underlying trends in the economy that may signal changes in monetary policy or broader economic conditions.
Bullish or Bearish for Currency and Stocks
Higher than expected: Bullish for CHF, Bullish for Stocks. Lower than expected: Bearish for CHF, 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
-0.7%
-0.4%
-0.3%
-0.3%
-0.3%
-0.2%
-0.1%
-0.1%
-0.1%
-0.5%
-0.8%
0.4%
-0.8%
-0.3%
-2.1%
-0.5%
-2.1%
-0.1%
0.2%
-2%