Friday, October 4, 2013

Germany Producer Prices Index (PPI)

Germany Producer Prices Index (PPI)

Although it is a moderate market impact announcement, is important for Euro traders sense it measures the change in the prices paid by domestic producers

Producer prices, also known as factory gate prices, are those charged by producers usually before retail, consumer markets. Increases in German Producer Prices act as an early indicator of inflation, as higher producer prices may be passed to consumers in the form of higher retail prices. Rising inflation is significant, especially coming from the largest economy in the Euro-zone. As we previously discussed on our blog German inflation will contribute to Euro-zone figures, and may be checked by increasing interest rates. And will effect on EUR purchasing power and exchange prices.           
And as information add; German PPI excludes volatile items, such as energy components and seasonal food, in order to provide a more accurate measure of price developments.
PPI last release of August showed a negative percentage (-0.1%), and the forecasts got (0.1%) for September.

Today (Friday 4th, October) at GMT6:00 A.M., PPI announced at level of (-0.1%) the same as expected, which means that cost got low and inflation rate declined on German economy due to reducing economy growth rates or due to economy weakness during the month off announcement.

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