Producer Price Index (PPI) Euro-Zone

Producer Price Index (PPI) Euro-Zone
Measures changes in the selling prices of goods and services used by Euro-zone producers. Because producers tend to pass on higher costs to consumers as higher retail prices, the PPI is an early indicator of inflation. A higher PPI, especially when combined with high figures for other measures of inflation, will make the European Central Bank more inclined to raise interest rates. A low or falling PPI is indicative of declining prices, and may suggest an economic slowdown. The Index headline is expressed as a month over month or annualized percentage change.

Note: The Euro-zone PPI excludes construction industry because it is vulnerable to seasonal price volatility that can distort index results.

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