Core PPI inflation was 2.0%, exceeding expectations of 1.9%.
He producer price index (PPI) for February increased to 1.6%, above expectations of 1.1%. The core inflation of PPI was 2.0%exceeding expectations of 1.9%.
Both consumer inflation (CPI) and producer inflation (PPI) resumed their upward trend. This puts in check the Federal Reserve’s plan to cut interest rates in the first half of the year yuAn interest rate cut in March now appears to be completely off the table after this data.
Additionally, a rate cut in May has also become questionable and the Federal Reserve knows that the fight against inflation is far from over.
Week full of negative data
The producer price index (PPI) for final demand in the United States increased 1.6% in annual terms in February, according to data published by the US Bureau of Labor Statistics on Thursday. This reading followed the 1% increase recorded in January (revised from 0.9%) and beat the market expectation of 1.1%.
The annual core PPI rose 2% in the same period, matching January’s increase. On a monthly basis, the core PPI rose 0.3%, compared to analysts’ estimate of 0.2%.
Market reaction
The US Dollar Index rose slightly in immediate reaction and was last seen rising 0.13% on the day, settling at 102.92.
Source: Ambito
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