United States Core PPI MoM Final

Info

History

Chart

Impact:

Low

Latest Release:

Surprise:

-0.1%

Actual:

-0.1%

Forecast: 0%

Previous/Revision:

Period: Feb 2024

What Does It Measure?

The United States Core Producer Price Index (PPI) MoM Final measures the average changes in prices received by domestic producers for their output, excluding the volatile categories of food and energy. It focuses primarily on inflation trends in the manufacturing sector, providing insights into potential future consumer price inflation as it reflects producers’ pricing power.

Frequency

The Core PPI MoM Final is released monthly, typically on the second or third business day of the following month, and represents final figures after any preliminary estimates have been revised.

Why Do Traders Care?

Traders closely monitor the Core PPI because it serves as a key indicator of inflation trends that can influence monetary policy decisions by the Federal Reserve. Higher-than-expected results may strengthen the U.S. dollar and boost stock market sentiment, while lower-than-expected figures might lead to bearish reactions in both currencies and equities due to concerns about economic slowdowns.

What Is It Derived From?

The Core PPI is calculated based on a survey of producers from various sectors, collecting data on prices for a representative basket of goods. The data is compiled using a weighted average approach, focusing on price changes for finished goods, with the exclusion of food and energy to provide a clearer picture of underlying inflation trends.

Description

The Core PPI MoM Final report provides insights into the pricing behavior of producers over a month, emphasizing price stability and inflationary pressures as experienced in the production stage of the economy. This measure is crucial for understanding broader inflation dynamics that eventually impact consumer prices and economic policy.

Additional Notes

As a forward-looking indicator, the Core PPI is often considered a leading economic measure, reflecting changes that precede consumer price adjustments. It is relevant not only for the U.S. economy but also for gauging inflationary pressures that may influence monetary policy within other global economies.

Bullish or Bearish for Currency and Stocks

Higher than expected: Bullish for USD, Bullish for Stocks. Lower than expected: Bearish for USD, Bearish for Stocks. Dovish tone: Signaling economic support, is usually good for the USD but bad for Stocks due to lower borrowing costs.

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		-0.1%	0%	0%	-0.1%