US producer inflation was below expectations
December Producer Price Index (PPI) data was released in the US As a result, the PPI rose 6.2 percent annually in December. Market expectations were for the PPI to be realized at the 6.8 percent level in this period.
The monthly PPI, on the other hand, fell more than expected. Producer prices decreased 0.5 percent compared to the previous month. Expectations were for a 0.1 percent decline.
The PPI, which was announced by the US Department of Labor as 0.3 percent for November, was revised to 0.2 percent. December consumer inflation (CPI) in the US, on the other hand, eased to 6.5 percent annually. The monthly CPI registered at -0.1 percent.
CORE PPI FAILED BELOW EXPECTATIONS
Although the fall in energy and food prices supported the decline in producer inflation, the basic PPI, which does not include food or energy, increased 0.1% per month and 5.5% per year. The expectation of an annual increase in the underlying PPI was at the level of 5.7 percent.
The core PPI, which was reported at 0.4 percent in November, was revised to 0.2 percent.
In addition, retail sales in the country increased 6.02 percent year-on-year in December, while a 1.1-percent decrease was recorded from the previous month.
US FUTURES EARNING INCREASES
US stock futures contracts increased their gains on expectations that US retail sales data fell more than expected in December, which will allow the US Federal Reserve to reduce interest rate hikes.
The fall in the US Producer Price Index, which was above expectations in December, reinforced signs of slowing inflation.
As of 16:45 CEST, Dow Jones Index futures contracts were up 0.1 percent. S&P 500 Index futures were up 0.26%, while Nasdaq 100 Index futures were up 0.43%.
Source: Sozcu
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
