Euro Zone Producer Price Index PPI Grows Aussie Dollar Strengthens
This figure is used to measure the selling price of goods or services within the Euro-Zone. It is often an indicator of future inflation since producers pass on their costs to the consumers as a higher retail price. If the figure comes out high, and there seems to be other figures indicating a rise in inflation, the European Central Bank may want to raise interest rates. A low PPI shows low prices and slow economic growth.
It should be noted that this figure does not include construction since it is sensitive to seasonal fluctuations.
Reports today show the PPI grew 2.7% in September, slightly higher than expected. The release of this figure shows a small change against the dollar, dipping 0.03% to 1.2793.
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