Japan PPI YoY

Info

History

Chart

Impact:

Low

Source: Bank of Japan

Next Release:

Date:

Forecast: 3.2%

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 focuses primarily on the costs of production, providing critical insights into inflationary pressures at the wholesale level, and key indicators include changes in prices for final goods, intermediate goods, and raw materials.

Frequency

The Japan PPI is released monthly, typically on the 10th day of each month, and it provides a preliminary estimate that may be revised in subsequent reports.

Why Do Traders Care?

Traders monitor the PPI as it serves as an early indicator of inflation, influencing central bank policies; thus, it can affect currency values (e.g., JPY) and stock market performance. A higher-than-expected PPI can signal rising production costs, potentially leading to inflation concerns and impacts on monetary policy, while lower readings may ease those concerns and support economic growth.

What Is It Derived From?

The PPI in Japan is derived from a survey of companies across various sectors, including manufacturing, services, and construction, using a sample of over 20,000 businesses. It employs a weighted approach to calculate price changes based on the relative importance of each industry and collects data on prices charged for products and services.

Description

The PPI is reported as a percentage change year-over-year (YoY), allowing analysts to assess long-term inflation trends while neutralizing seasonal fluctuations. This comparative measure is crucial for understanding structural shifts in pricing over time and gives a comprehensive view of inflationary trends in the economy. Preliminary reports may not account for late survey responses, while final figures provide a more accurate reflection of market conditions.

Additional Notes

The PPI acts as a leading indicator of inflation, influencing consumer prices and overall economic activity. In the context of Japan, it is particularly significant given the country’s struggle with deflationary pressures and the Bank of Japan's policy measures aimed at achieving stable inflation rates.

Bullish or Bearish for Currency and Stocks

Higher than expected: Bullish 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