Australian Q4 PPI +0.7% q/q (vs. expected 1.7%) +5.8% y/y (expected 6.3)

Australian 'wholesale' inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term data for the October - December 2022 quarter.

+0.7% q/q

• expected 1.7%, prior 1.9%

+5.8% y/y

• expected 6.3%, prior 6.4%

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Slower PPI is a bit of encouragement for potential slower CPI ahead. The most recent official Australian data, just this week, continued to show rising CPI:

• Australia Q4 Headline CPI 1.9% q/q (expected 1.6%)

Slower CPI ahead would be welcome. But it'll have to slow dramatically to get even close to the upper band of the Reserve Bank of Australia target range of 2-3%.

The RBA website shows the current quarterly and monthly CPI rates:

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Via Bloomberg description:

• The Producer Price Index (PPI) measures a change in input prices of raw, semi-finished or finished goods and services.
• If input costs rise, some will be absorbed by the producer and some passed on to the consumer.
• Conversely, if input costs fall, some of the decline will be enjoyed as wider profit margins by the producer and some will be passed on to the consumer in the form of lower prices.
• Because PPI impacts consumer prices, it is watched by central bankers as part of fulfilling their mandate of price stability.