Euro-Zone PPI (Y/Y)


The Producer Price Index released by the Eurostat is an index that measures the change in prices received by domestic producers of commodities in all stages of processing (crude materials, intermediate materials, and finished goods). Changes in measures in the sale prices of goods and services used by Euro-zone producers. An early indication of inflation is the PPI. This is due to producers' tendency to pass on higher costs to consumers as higher retail prices. In combination with high statistics for other inflation measures, higher domestic output prices will result in the European Central Bank becoming inclined to increase interest rates. An indicator of whether prices are declining and suggestion that an economic slowdown is occurring is a low of falling PPI. The Index headline is expressed as a month over month or annualized percentage change. The Euro-zone Producer Price Index excludes the construction industry due to its vulnerability to seasonal price volatility which may result in a distortion of index results.

Share on,