US producer inflation fell in February
US Producer Inflation (PPI) announced.
According to data from the Ministry of Labor, the PPI decreased 0.1 percent monthly and increased 4.6 percent annually. The economists’ forecast was for an increase of 0.3 percent per month and 5.4 percent annually.
The core PPI did not change on a monthly basis, but declined to 4.4 percent from 5.4 percent annually.
Last month, the PPI rose 0.7 percent on a month and 6 percent on a yearly basis, above expectations.
GOLD RISE
Gold prices rose amid rising risks in global markets. An ounce of gold traded at $1,925, up 1.15 percent on the day. The gram of gold was bought at 1,160 TL, the quarter of gold at 1,935 TL, and the Cumhuriyet gold at 7,921 TL.
Concern that the failure of Silicon Valley Bank (SVB) would affect the entire banking sector led investors to seek safe haven. In addition, expectations that the US Federal Reserve (Fed) will slow rate hikes also supported gold.
Following yesterday’s US inflation data, markets began pricing in the Fed raising interest rates by 25 basis points in the next two meetings and reining in hawkish policies.
As markets braced for the Fed’s return to full-scale hikes until last week, the sudden bankruptcy of the SVB changed those expectations. Markets are now pricing in an 80% chance of a 25 basis point rise next week.
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.
