- Wholesale inflation rises less than expected in October.
- Annual PPI goes from 8.4% to 8%, less than the 8.3% market consensus.
- The dollar extends the losses throughout the market after the data.
The Producer Price Index (IPP) registered an advance of 0.2% in October, less than the 0.5% expected. The annual rate went from 8.4% to 8.0%, less than the 8.3% market consensus and the lowest in more than a year.
Core PPI was unchanged in October, against expectations for a 0.4% rise. Compared to 12 months ago, the rise was 6.7%, below 7.2% in September.
Last Thursday, the lower-than-expected data for retail inflation had triggered a sharp drop in the dollar, which seems to be resuming on Tuesday, and which received a boost after the IPP. This comes with the expectation that the Federal Reserve will reduce the magnitude of the interest rate hike as soon as the next meeting in December.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
