Inflation at the wholesale level came faster than the forecast last month in another disappointment for investors and responsible for formulating policies waiting for cooling price pressures.
The producer’s price index (PPI) increased 0.4% in January versus economist forecasts for 0.3% and 0.2% in December. About a year after year, PPI was higher at 3.5% compared to estimates of 3.2% and 3.3% in December.
The central PPI, which excludes food and energy components, increased 0.3% in January versus forecasts for 0.3% and 0% in December. Core PPI year after year was greater at 3.6% versus estimates for 3.3% and 3.5% in December.
Under pressure once again this morning before the new Trump Rate ads promised for later today, the price of Bitcoin (BTC) continued operating around the level of $ 96,000.
Normally, today’s PPI figures acquired more imports one day after the markets were surprised by the consumer price index (CPI) for January that were much stronger than estimates. Tyling before Congress yesterday after the fast inflation report, the president of the Federal Reserve, Jerome Powell, admitted that there is more work to do in the front of inflation.
The PPI number acquired an even greater meaning, since Powell said he would be interested in seeing if today’s number confirmed the disappointing data of the CPI.
After reducing 100 basic points rates in the last months of 2024, Powell and the rest of the Fed have made clear their intention to stop any additional monetary ease until there is a remarkable deceleration in the economy and/or inflation.
Before the PPI figure was published, the markets had a price in just a rate cut for all 2025, according to the CME Fed Watch tool.
