đ US PPI Jumps to 6.3%: New Inflation Pressure and What It Means for Crypto
In the September data released on October 15, the US Producer Price Index (PPI) rose 1.3% month-on-month and 6.3% year-on-year, the highest since March 2022. Analysts had expected around 5.3%. (stockhub) (xtb)
đč Key numbers
Core PPI (excluding food and energy): +0.7% MoM, +5.0% YoY (stockhub)
Energy prices: +10.8% (stockhub)
Retail sales: +0.8% (forecast: +0.3%) (stockhub)
Weekly jobless claims: 199K, so the labor market remains tight (stockhub)
đč What is PPI, and why does it matter?
PPI measures the prices producers receive for their goods and services. When production costs rise, they can later feed into consumer prices. If inflation data stays strong, it becomes harder for the Fed to cut interest rates.
đč Market reaction
Analysts say the high PPI and CPI (3.7%) have pushed up interest rates and borrowing costs. The Fed's next meeting is on October 28, where this data will be part of its assessment. (huggingnews) (financecalendar)
đč For crypto traders
Crypto is a risk asset and is sensitive to interest rates and liquidity. Keep an eye on inflation data, Fed commentary, and the US dollar.