U.S. producer prices rise 5.4% in August
U.S. producer prices rose 5.4% year over year in August, above the 5.3% expected and up from 4.8% in July. The monthly PPI also accelerated to 0.4% from 0.1%, versus 0.3% consensus, while core PPI rose 0.2% on the month and 4.6% year over year.
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S. 8% in July, Labor Department data showed Thursday. 3% consensus. 3%.
7% previously. Ahead of the report, Fed futures priced a 62% chance of a rate hike at the Fed’s meeting next week. 2%. 1% on the month and accounted for more than a third of the goods increase.
1%. 0% and trade prices were unchanged. 2%, while the cleanest measure of underlying services inflation — final demand services less trade, transportation and warehousing — was unchanged in August. Portfolio management prices, which feed into the Fed’s preferred PCE gauge, moved lower.
Equities extended their losses in the minutes after the release. m. 6% to 2,904. 50%, its sharpest move of the session.
S. 91. 1% to $4,340 an ounce as a firmer dollar and higher front-end yields weighed on the metal. 60.
Before the report, Fed futures had priced a 62% chance of a rate hike at next week’s meeting. Chances of a 25-basis-point rate hike next week climbed to 66% after the hotter-than-expected PPI report. Polymarket currently puts the odds of a rate hike at 54%.