PPI is also called producer price index: the main purpose of producer price index is to measure the price changes of various commodities at different production stages. Generally speaking, the production of goods is divided into three stages: first, the completion stage: the goods are no longer processed; Second, the intermediate stage: the goods need further processing; Third, the original stage: the goods have not been processed.
PPI is an indicator to measure the trend and degree of ex-factory price changes of industrial enterprises, an important economic indicator to reflect the price changes in the production field in a certain period, and an important basis for formulating relevant economic policies and national economic accounting.
The rise of these two values will force the central bank to adopt a tight monetary policy, cancel the deposit reserve ratio or directly raise interest rates. After entering the interest rate channel, the local currency will depreciate directly. However, the foreign exchange market is a zero-sum game. After the local currency raises interest rates, it will attract international hot money, and after the international hot money enters, the local currency may appreciate. At present, there is no fixed law about the sequence of time and the size of function.
Please be cautious when entering the market accordingly.