by George Dorgan
My articles My siteAbout meMy videosMy books
Follow on:LinkedINTwitterSeeking Alpha
CFA SocietyEconomicBlogs
The Producer Price Index (PPI) or officially named “Producer and Import Price Index” describes the changes in prices for producers and importers. For us it is interesting because it is used in the formula for the Real Effective Exchange Rate. When producers and importers profit on lower price changes when compared to other countries, then the Swiss Franc reduces its overvaluation. The Swiss PPI values of -6% in 2015 (see below), compared to -3% in Europe or -1% in the U.S., diminished the overvaluation. In 2017, however, producer prices are rising again – in both Europe and Switzerland. See more in Is the Swiss Franc overvalued?
| 14.08.2020 – The Producer and Import Price Index rose in July 2020 by 0.1% compared with the previous month, reaching 98.3 points (December 2015 = 100). The rise is due in particular to higher prices for petroleum products. Compared with July 2019, the price level of the whole range of domestic and imported products fell by 3.3%. These are the results of the Federal Statistical Office (FSO).
The Producer Price Index registered falling prices compared with the previous month, particularly for scrap. Vegetables and potatoes also became cheaper. In contrast, increasing prices were observed for petroleum products. Petroleum products were responsible in particular for the increase in the Import Price Index compared with June 2020. Petroleum and natural gas, copper and products made therefrom, as well as other fruit and nuts, also showed price increases. In contrast, computers and peripheral equipment, vegetables, potatoes, basic iron, steel and other fabricated metal products showed lower prices. |
Switzerland Producer Price Index (PPI) YoY, July 2020(see more posts on Switzerland Producer Price Index, ) Source: investing.com - Click to enlarge |
Download press release: Producer and Import Price Index increased by 0.1% in July 2020
Tags: Featured,newsletter
