United States USD

United States PPI MoM Final

Impact:
Medium
Source: U.S. Bureau of Labor Statistics

Latest Release:

Date:
Surprise:
-0.1%
| USD
Actual:
-0.2%
Forecast: -0.1%
Previous/Revision:
-0.1%
Period: Dec
What Does It Measure?
The United States Producer Price Index (PPI) measures the average change over time in the selling prices received by domestic producers for their output. Specifically, it reflects price movements in the manufacturing, agriculture, and services sectors, assessing inflation levels before they reach consumers and thus providing insights into overall production costs.
Frequency
The PPI is released monthly, with the report typically published around the middle of the following month and represents final figures after any revisions to preliminary data.
Why Do Traders Care?
Traders closely monitor the PPI as it serves as a leading indicator of consumer inflation, influencing monetary policy decisions and affecting key assets like the USD, stocks, and bonds. Higher-than-expected PPI results can lead to speculation about interest rate hikes, thus strengthening the currency, while weaker figures may support expectations of continued low rates, impacting market sentiment negatively.
What Is It Derived From?
The PPI is derived from a monthly survey of producers across various industries, which collects data on prices they receive for a representative set of goods and services. This index is calculated using a structured sampling of producer prices and applies weighting to ensure that the data reflects a comprehensive view of price changes across the economy.
Description
The PPI report includes a preliminary estimate that is subject to revision, followed by a final report that provides a more accurate reflection of the data. The PPI analysis is typically presented on a month-over-month (MoM) basis, allowing traders to assess short-term inflationary trends and react swiftly to changing economic conditions.
Additional Notes
This indicator is considered a leading economic measure, often used to predict consumer price inflation trends and assess overall economic health. The PPI can provide insights into production sector behaviors, which, when evaluated alongside related indicators like the Consumer Price Index (CPI), helps form a comprehensive understanding of inflationary pressures in the economy.

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%
 -0.1%
-0.1%
 -0.1%