<p dir="LTR"><span>Financial Tribune - The average Producer Price Index in the 12 months ending June 21, which marks the end of the Iranian month of Khordad, increased by 6.5% compared with last year’s corresponding period, the latest report by the Central Bank of Iran announced.</span></p> <p dir="LTR"><span>The CBI put the preceding month’s PPI inflation at 5.9%.</span></p> <p dir="LTR"><span>A year-on-year increase of 8.7% was registered in the index compared with the similar month of last year. The PPI (using Iranian year to March 2012) stood at 237.2 in Khordad, indicating a 4% rise compared with the previous month.</span></p> <p dir="LTR"><span>According to Investopedia, PPI can serve multiple roles in improving investment-making decisions because it can serve as a leading indicator of CPI.</span></p> <p dir="LTR"><span>All in all, a decrease in PPI is one of the signs of a probable slowdown in CPI in future months. Almost a perfect correlation exists between CPI and PPI.</span></p> <p dir="LTR"><span>The central bank’s latest data on CPI show the goods and services CPI for urban areas in the 12 months to June 21 increased 10.2% compared with last year’s corresponding period, ending months of single-digit average CPI growth.</span></p>