Australian data: Q4 PPI +0.9% q/q (prior +1.8%)

<p>The housing finance results have declined on the month, but from elevated levels. </p><p>AUD/USD is sitting close its session high, in a very small range.</p><p>—</p><p>The q/q slowing in PPI will take some of the pressure off rising consumer level prices.</p><p>The Producer Price Index (PPI) measures a change in input prices of raw, semi-finished or finished goods and services.</p><ul><li>
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.
</li><li>Because PPI impacts consumer prices, it is watched by central bankers as part of fulfilling their mandate of price stability.</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.