On June 1oth 2011 at 08:30 GMT the UK released May’s PPI Input report.
April’s value 2.6%; May’s forecast: -1.1%
PPI Input reflects the changes in the prices on primary products and components. Moreover, the expenses of the operating enterprises are also taken into account.
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The task is to trace the input price changes. The data make it possible to evaluate the inflation processes taking place in the country’s economy.
Those currency traders who know how the inflation/deflation mechanism influences the purchasing power of the local currency can consider the index to be fairly significant.
A decline in the index value usually provokes the weakening of the country’s national currency (in this case it is the British Pound).
The UK report is published in the middle of the month following the reporting one.
