• Monday – January 23, 2012 Australian Producer Prices (0030 GMT)
PPI measures changes in the selling prices received by producers. Because PPI analyzes changes in price that occur before the good reaches the retail level, it gives an early indication of inflationary pressures consumers will potentially later face for finished goods. The PPI reports data broken into stages of production, thereby tracking how manufacturers pass on increased costs or efficiency gains to the final consumer. The index may therefore be used as a detailed picture of how inflationary pressures feed through production lines and as a leading indicator for inflation pressures. The headline is the percentage change in the index from the previous quarter and year. The RBA has recently reduced benchmark interest rates, and a tame PPI will give it the room it needs to maneuver rates. A higher than expected number will cause the AUD to push higher.
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