PT Solid Gold Berjangka | US Producer Prices Increased by More Than Forecast in January
Ekonomi AS Harga produsen, PPI m/m Core PPI m/m PT SGB Solid Gold Berjangka SG Berjangka Solid Group
Solid Gold Berjangka | Prices paid to US producers rose in January by more than forecast, highlighting the sticky nature of inflation.
The producer price index for final demand increased 0.3% from December, Labor Department data showed Friday. The gauge rose 0.9% from a year earlier, also exceeding forecasts.
The so-called core PPI, which excludes volatile food and energy categories, climbed 0.5% from the prior month, and 2% from a year ago both topping expectations.
The advance reflected increases in services categories, including hospital outpatient care and portfolio management.
Treasuries extended their selloff following the PPI data. Two-year yields rose to the highest level since mid-December, when the Federal Reserve signaled interest rates had peaked. Traders pared expectations for interest-rate cuts, seeing only a one-in-four chance of a move in May.
Following a separate report this week that showed a jump in consumer prices at the start of the year, the wholesale-price figures likely reaffirm the view that the Fed will hold off reducing interest rates until officials are convinced inflation is sufficiently tamed.
One reason economists at the Fed and on Wall Street parse the PPI report is because several categories are used to inform the Fed’s preferred inflation measure, the personal consumption expenditures price gauge. The January reading of the PCE is due later this month.
Services costs increased 0.6%, the most since July. Prices paid to producers for goods dropped 0.2%, the fourth-straight decrease.
Source : Bloomberg