Just released, the US August PPI year-over-year rose 5.40%, expected to rise 5.30%, with the prior reading up 4.70%. After the PPI data was released, the market fully priced in that the Federal Reserve will hike rates in October.
The US dollar index rose slightly in the short term and is now at 99.00. The yield on US 10-year Treasuries rose slightly in the short term and is now at 4.890%. US stock index futures widened their losses, with Nasdaq futures down more than 1%. International oil prices continued to climb: WTI crude oil futures moved higher, reaching above $100 per barrel. Spot gold and silver were lower; spot silver fell more than 4% intraday, and spot gold fell more than 1%.
This PPI report was released one day before the latest CPI data is due, which is expected to show so-called core inflation is relatively mild. Some Federal Reserve officials have hinted that the rate decision at the September 15–16 meeting may depend on what this week’s reports reveal. In a speech last month, Fed Chair Waller said that if policymakers are unable to be confident that underlying inflation trends are improving significantly, the Fed “has more work to do.” As hostilities between the US and Iran continue, another rise in oil prices could further complicate the outlook.
【US August PPI growth beats expectations, still far above the Fed’s inflation target】The US wholesale prices rose in August. The PPI report released Thursday may play an important role in the rate decision the Fed is about to make. The data showed that after seasonal adjustment, August PPI rose 0.4% month-over-month, matching market expectations. On a year-over-year basis, PPI rose 5.4%, still far above the Fed’s 2% inflation target, and also 0.1 percentage points higher than market expectations. $BZ
With crude oil prices continuing to rise, expectations of a Fed rate hike in October are heating up! The probability of a rate hike has risen to 61%
The US dollar index rose slightly in the short term and is now at 99.00. The yield on US 10-year Treasuries rose slightly in the short term and is now at 4.890%. US stock index futures widened their losses, with Nasdaq futures down more than 1%. International oil prices continued to climb: WTI crude oil futures moved higher, reaching above $100 per barrel. Spot gold and silver were lower; spot silver fell more than 4% intraday, and spot gold fell more than 1%.
This PPI report was released one day before the latest CPI data is due, which is expected to show so-called core inflation is relatively mild. Some Federal Reserve officials have hinted that the rate decision at the September 15–16 meeting may depend on what this week’s reports reveal. In a speech last month, Fed Chair Waller said that if policymakers are unable to be confident that underlying inflation trends are improving significantly, the Fed “has more work to do.” As hostilities between the US and Iran continue, another rise in oil prices could further complicate the outlook.
【US August PPI growth beats expectations, still far above the Fed’s inflation target】The US wholesale prices rose in August. The PPI report released Thursday may play an important role in the rate decision the Fed is about to make. The data showed that after seasonal adjustment, August PPI rose 0.4% month-over-month, matching market expectations. On a year-over-year basis, PPI rose 5.4%, still far above the Fed’s 2% inflation target, and also 0.1 percentage points higher than market expectations. $BZ
With crude oil prices continuing to rise, expectations of a Fed rate hike in October are heating up! The probability of a rate hike has risen to 61%