Producer Price Index
The Producer Price Index (PPI) is a measure of the prices charged
by producers as it changes over time. An early indicator of upward
pressure on prices on the supply side, this indicator is closely
connected to the Consumer Price Index (CPI), which takes into
account both supply and demand side inflationary pressures.
Fundamental Analysis of the PPI
Fundamental Analysis of the PPI resembles that of the CPI. As
inflationary pressures show signs of increasing, so does the
likelihood of an increase in interest rates—a rise in the lending
rate increases capital inflows and leads to higher demand for a
particular currency, increasing its value.
The PPI is released by the Conference Board on a monthly basis
around the 11th of each month at 10:00 am EST.
