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In the US, the Producer Price Index (PPI) data for July is among the important economic indicators closely followed by global markets and the cryptocurrency market. Recently released data reveals that producer inflation in July was below expectations on an annual basis.
Producer Inflation Decreased
According to the data, annual producer inflation in July was recorded at 2.2%. The market expectation was that this rate would be 2.3%. Considering the annual inflation rate of 2.6% announced in June, the data for July shows a decline compared to the previous month.
On a monthly basis, producer inflation was 0.1% in July. In June, this rate was announced as 0.4%, and a 0.2% increase was expected in July. The announced data fell below expectations.
On the other hand, core producer inflation, excluding food and energy items, also fell below market expectations both annually and monthly. Annual core producer inflation was recorded at 2.4%, while the market expectation was 2.7%. Monthly core producer inflation was announced as 0.0%. Expectations were that the data would be 0.2%.
These data show that producer inflation in the US increased more slowly than expected in July. Especially the core producer inflation data falling below expectations can be interpreted as a slight relief in the inflation pressure on the US economy. Although this slowdown in producer prices does not provide sufficient data to make a definitive judgment about the general trend of inflation, it may have the effect of reducing inflation fears from the Fed’s perspective.
Eyes on Tomorrow’s Inflation Data After PPI Data
After the producer inflation data, the markets are now focused on the Consumer Price Index (CPI) data to be announced tomorrow at 15:30 Turkish time. Expectations are that inflation in the US will be 3% annually and 0.2% monthly in July.
Core inflation data, excluding food and energy items, is expected to be 3.2% annually and 0.2% monthly.
