PPI Outputs:
- The PPI Outputs measure the average prices received by New Zealand producers for goods and services they produce and sell. This could be to other businesses (intermediate consumption) or to final consumers.
- cover various industries such as agriculture, manufacturing, construction, and services, among others
- rising PPI Outputs index can indicate increasing inflationary pressure as producers are getting higher prices for their goods and services. However, they might not necessarily pass these increases on to consumers
PPI Inputs:
- The PPI Inputs, on the other hand, measure the average prices paid by New Zealand producers for their inputs — the raw materials, services, and capital goods they use to produce their goods and services.
- These inputs can be sourced domestically or imported.
- When the PPI Inputs index is rising, it suggests that producers are facing higher costs, which might eventually lead to higher prices for consumers if the producers pass these costs on through higher output prices.
The Reserve Bank of New Zealand (RBNZ) decision and press conference is the focus for the session here. This is the first Reserve Bank of New Zealand meeting since November last year. New Governor Dr. Anna Breman is moving to shorten this gap in future years. Three months is a long time between monetary policy meetings.
RBNZ statement due 18 February at 2pm New Zealand time (0100 GMT / 2000 US Eastern time on Tuesday 17 February).
Previews:
- RBNZ expected to hold rates as higher food price inflation adds limited pressure
- Likely RBNZ on hold decision February 18
- RBNZ to hold, signal rate hikes ahead, ING. Upside risks for NZ/US toward 0.62 by year-end
- RBNZ preview: risk of disappointment given the high expectations
After the Reserve Bank of New Zealand today attention will quickly switch to the minutes of the Federal Reserve's Federal Open Market Committee (FOMC) meeting, due at 1900 GMT / 1400 US Eastern time.
