The producer price index for July increased by 0.3% compared to the previous month.
Wall Street is trading lower due to a slight rebound in wholesale inflation in the US
He index from prices to production July increased by 0.3% compared to the previous month. The economists surveyed by Dow Jones They hoped that the report, which they closely follow the Federal Reserve and market participants, will increase a 0.2% MoM.
For this reason, the main indices of the new york square trade with slight losses in early trading on Friday. The S&P 500 falls 0.4%, the Dow Jones loses close to 30 points, slightly less than 0.1% and the Nasdaq 100, 0.6%
Inflation: Unexpected data
“The increase in wholesale prices serves as a reminder that the Fed, data-dependent, not ready to declare victory in campaign to quell inflation“, said Quincy Krosby, Global Chief Strategist at LPL Financial. “Not surprisingly, today’s report gives the Fed’s hawkish wing more ammunition to argue for another rate hike before the Fed is convinced it has reached its terminal rate.”
The report comes a day after the retail price index July consumption was softer than expected in year-on-year terms. Prices rose 3.2% annually, below the consensus estimate of 3.3%. However, the call underlying CPIwhich excludes volatile food and energy prices, rose 4.7% from a year earlier.
With the Government’s announcement of the slight increase in inflation in wholesale prices last month, it is once again made clear that the work of the Federal Reserve to curb inflation is not over.
Source: Ambito
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