The PPI index is divided into two types, depending on the calculation method:
- PPI input index or PPI at the input. When calculating PPI input, changes in prices for components and semi-finished products are taken into account. It should be noted that this indicator does not always affect the inflation index, as it can be offset by a decrease in production costs. However, under normal conditions, PPI input is a strong indicator of future inflation. PPI input data does not have a significant impact on the Forex market. An exception is the moment when the actual value of the index is seriously different from the consolidated forecast.
- PPI output index or PPI output. The producer price index PPI output determines the change in selling prices for goods and finished products in industry, as well as changes in the cost of labor. PPI output reflects inflationary pressure on the country's economy from manufacturers and exporters.
