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Forex Glossary Index: A | B | C | D | E | F | G | H | I | K | L | M | N | O | P | Q | R | S | T | U | V | W | Y
(PPI)The Producer Price Index (PPI) is an economic indicator for measuring the level of inflation in a country or territory. It is derived from average changes in selling prices of suppliers to producers. As increased PPI often implies inflation of consumer products and thus higher interest rate, a greater-than-expected increase or a smaller-than-expected decrease in PPI normally leads to appreciation of the associated currency in forex trading. Alternatively, a greater-than-expected decrease or a smaller-than-expected increase in PPI normally leads to depreciation of the associated currency.
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