Japan PPI MoM

Info

History

Chart

Impact:

Low

Source: Bank of Japan

Next Release:

Date:

Period: Jun

What Does It Measure?

The Japan Producer Price Index (PPI) measures the average change over time in the selling prices received by domestic producers for their output. It primarily focuses on inflation at the wholesale level, assessing key areas such as goods production, service outputs, and the overall pricing environment in the manufacturing and industrial sectors.

Frequency

The Japan PPI is released monthly, typically providing preliminary estimates around the middle of each following month.

Why Do Traders Care?

Traders pay close attention to the Japan PPI as it serves as a critical indicator of inflation trends that can affect monetary policy decisions by the Bank of Japan. Higher-than-expected PPI readings could lead to stronger currency valuations (JPY) and impact equity markets positively, while weaker results might indicate inflationary pressure, prompting a bearish sentiment in both currency and stock markets.

What Is It Derived From?

The Japan PPI is derived from a survey conducted among approximately 3,600 respondents, including manufacturers and service providers, who report their average selling prices. This data is collected through standardized questionnaires and is weighted according to the industries' economic significance to ensure accurate reflection of the overall producer price changes.

Description

Preliminary reports of the Japan PPI are based on early estimates of price changes and are subject to revision, while final reports provide a more accurate representation of price movements and are released later. Monthly comparisons (MoM) help identify short-term fluctuations in producers' pricing power, making it important for traders to immediately evaluate economic conditions following its release.

Additional Notes

The Japan PPI is considered a leading indicator of consumer price inflation, influencing market expectations for price changes in the final goods sold to consumers. Its trends can be compared to other inflation indicators such as the Consumer Price Index (CPI), and it provides insights into the broader economic trends both regionally within Asia and globally.

Bullish or Bearish for Currency and Stocks

If the actual PPI value is higher than expected: Bullish for JPY, Bullish for Stocks. If the actual PPI value is lower than expected: Bearish for JPY, Bearish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number	Better than forecast for the currency (or previous revise better)
Red Number	Worse than forecast for the currency (or previous revise better)
Hawkish	Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish	Favors lower rates to boost growth, weakening the currency but lifting stocks.

Date	Time	Actual	Forecast	Previous	Surprise