Producer Prices

The Producer Price Index (PPI) measures the change in the price of goods sold by manufacturers. It is a leading indicator of consumer price inflation, which accounts for the majority of overall inflation as the producers often pass the rising costs to the retailers and to the consumers, therefore increasing the consumer price index (CPI).
A higher than expected or rising figure for the producer price index is considered positive and supportive for the Australian Dollar, signaling inflationary pressures in the economy, meaning that the Reserve Bank  of Australia may have to raise in the future the key interest rate and alter its monetary policy to fight inflation. The final demand producer price index in Australia went up 0.2 percent on quarter in the third quarter of 2017, easing from a 0.5 percent rise in the prior period and below market consensus of a 0.4 percent gain.
The latest reading for the Producer Prices in Australia was 108 Index Points, higher than the previous reading of 107.80 Index Points. Producer Prices in Australia averaged 89.90 Index Points from 1998 until 2017, reaching an all-time high of 107.30 Index Points in the first quarter of 2017 and a record low of 70.70 Index Points in the first quarter of 1999. As of January 2015 the Producer Prices in Australia have an upward slope trend, suggesting that inflation is picking up momentum steadily and is rising. If this trend continues, then the Reserve Bank of Australia may raise interest rates in the future, which should be positive for the Australian Dollar.