PPI measures changes in the price of the consumer basket produced in the industry. This index consists of two parts: the input prices (semi-finished products, components, etc.) and output prices (finished goods). The output price includes labor costs and gives an insight into inflation associated with changes in labor cost. PPI is considered more reliable if it does not take into account food and energy industries. When calculating this index prices for imported goods and services are not taken into account.
It has a significant impact on the market. With expectations of an increase in basic interest rates, the increase of the index leads to an increase in the rate of dollar.