PPI (Producer Price Index)
PPI measures the change in prices that producers receive for their output, so it captures inflation earlier in the supply chain than CPI. Rising producer costs often feed through to consumer prices later, which is why traders treat PPI as a leading inflation signal. It moves markets less than CPI, but a large surprise still shifts interest-rate expectations.
Full explanation
PPI is released monthly, usually close to CPI, and is reported both headline and core. Analysts watch the pass-through relationship: sustained producer-price pressure with tight margins tends to reach consumers, whereas producer inflation absorbed by margins may not. Currency reactions are typically smaller and shorter-lived than for CPI unless the surprise is large or it contradicts the prevailing central-bank narrative.
Why traders watch it
PPI gives an early read on where consumer inflation is heading, so it can confirm or challenge the story the last CPI release told.
Related indicators
Australia Export Price Index Quarter-over-Quarter
Quarterly change in prices for merchandise exports shipped from Australia, a key terms-of-trade indicator.
Australia Import Price Index Quarter-over-Quarter
Quarterly change in prices for merchandise imports landed in Australia, used to assess imported inflation pressure.
Australia Private Sector House Approvals Month-over-Month
Monthly change in Australian private-sector house approvals, an early signal of housing construction activity.
CPI (Consumer Price Index)
CPI measures the change in the price of a basket of goods and services bought by households, and it is the headline gauge of inflation. Core CPI strips out food and energy to show the underlying trend. Because central banks set interest rates to control inflation, a CPI surprise moves currencies quickly and is one of the highest-impact releases on the calendar.
Gross Domestic Product Growth Rate
GDP growth measures the inflation-adjusted change in an economy’s output over a quarter or year.
Harmonised Index of Consumer Prices Annual Inflation Rate
HICP annual inflation measures year-on-year consumer price changes using Europe’s comparable inflation index.