The US October Producer Price Index (PPI) rose 1.3% year-on-year, undercutting estimates of 1.9%. Core PPI rose 2.4%, coming in below estimates of 2.7%.
This is the first time in four months that so-called wholesale inflation has fallen. Earlier this week, the markets celebrated lower-than-expected October retail inflation in most sectors.
US PPI Helped by Gasoline Price
Month-on-month, the producer price index fell 0.5%, while core PPI remained unchanged. Most of the decline in goods prices occurred because of a 15.3% drop in gasoline cost.
The report also showed that retail sales for October slowed 0.1% monthly, coming in lower than analysts’ expectations of 0.3%. Sales are likely to pick up ahead of the holiday season.
The Producer Price Index (PPI) is what domestic producers pay to produce finished goods. Any increase in the cost of production can cause increase in prices for retail customers. Hence a lower PPI means a lower chance the consumer will pay more.
Bitcoin and Stocks Like US PPI Numbers
The stock market appeared set for positive gains following Tuesday’s favorable CPI numbers. It met expectations after the
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Author: David Thomas
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