* What is the Producer Price Index (PPI)?
It is a measure of inflation that measures the average change in selling prices received by domestic producers for their goods and services. In other words, it shows how the costs incurred by producers are changing.
* Data displayed:
* Actual: 2.6%
* Forecast: 2.6%
* Previous: 2.5%
* Market impact:
* Higher than expected reading (2.6% in this case): Considered positive/bullish for the US dollar (USD), as it indicates an increase in inflation which may prompt the central bank to raise interest rates.
* Lower than expected reading (below 2.6%): Considered negative/bearish for the US dollar.
* Source: U.S. Bureau of Labor Statistics.
In summary, this page provides a quick analysis of one of the most important economic indicators that affect the value of the US dollar and inflation expectations.