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Trends & Analysis
News

EUR/GBP Price Rebounds from a Multi-Week Low- What’s Next?

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Cisco shares climb on upbeat profit, higher view

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Gold Prices May Fall Below $3,000

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Crude oil spikes amid easing trade tensions

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GBP/USD Price may Slide Further

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Dow surges over 1,100 points on US-China agreement

Trends & Analysis
News

EUR/GBP Price Rebounds from a Multi-Week Low- What’s Next?

News

Cisco shares climb on upbeat profit, higher view

News

Gold Prices May Fall Below $3,000

News

Crude oil spikes amid easing trade tensions

News

GBP/USD Price may Slide Further

News

Dow surges over 1,100 points on US-China agreement

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Your guide to the Producer Price Index ex Food & Energy (YoY)

Learn about this key US data release and the markets it impacts with our interactive widget below.

What is it?

The Producer Price Index ex Food & Energy (YoY) measures the prices that producers (businesses or manufacturers) charge for their goods and services – and how much they have changed over the past year (but not including the prices of food and energy).

Traders use it to monitor inflation pressures. If producer prices rise, it could mean higher consumer prices later on, influencing central bank decisions on interest rates.

Why does it matter to traders?

The producer price index (PPI), often overlooked, can be utilised to assess the rate of change in prices. The PPI is a wholesale measure of inflation. The PPI is somewhat similar to the CPI with the exception that it looks at rising prices from the perspective of the producer rather than the consumer.

While the CPI looks at final prices realized by consumers, the PPI takes one step back and determines the change in output prices faced by producers.

 

Disclaimer: This article is an educational guide to CFD trading and the financial markets and should not be considered as advice.
T
rading CFDs is high risk. Always ensure you understand the potential risks and rewards associated with trading before you trade.

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