Thursday morning was marked by the release of significant economic data for the United States, setting the tone for the trading session.
The producer price index rose by 0.7% month-on-month in August, jumping from July’s 0.3% increase and surpassing estimates of 0.4%.
This represented the highest monthly price increase for producers since June 2022. Annual inflation among producers reached 1.6%, exceeding economists’ projections of 1.2%.
The PPI’s unexpected rise comes on the heels of a higher-than-expected consumer price index report released just a day earlier. August CPI inflation increased to 3.7%, up from 3.2% in July, slightly above the anticipated 3.6%.
These elevated figures have raised concerns about the Federal Reserve’s monetary policy, as mounting inflation pressures could prompt the Fed to rethink its interest rate path.
Despite the reactivation of inflationary pressures, American consumer demand remains strongly robust. August witnessed 0.6% month-on-month growth in ...Full story available on Benzinga.com
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