US producer inflation tops expectations as diesel costs jump
- On Thursday, the Department of Labor reported the Producer Price Index rose 5.4 percent year-on-year in August, exceeding the 5.3 percent forecast by MarketWatch and accelerating from 4.8 percent in July.
- Energy costs jumped 4.2 percent over the month, with diesel fuel surging 24.1 percent and squeezing United States businesses and households amid ongoing conflict disruptions.
- US-Israeli strikes targeting Iran in late February prompted Tehran to choke the Strait of Hormuz, a crucial transit route. Nationwide senior economist Ben Ayers noted supply chain disruptions "continue to add pressure to goods costs."
- The Federal Open Market Committee meets next week amid elevated rate-hike expectations. CMEGroup's FedWatch tool puts the likelihood of a 25 basis points rate hike at nearly 70 percent for the meeting.
- President Donald Trump faces growing political pressure ahead of November midterm elections as rising diesel costs frustrate farmers. The conflict has hit an impasse more than six months after it started, complicating his vow to lower oil prices.
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46 Articles
The increase in high interest bets at the next meeting of the Federal Reserve (Fed, the US central bank) pressured future gold contracts on Thursday (10), and the commodity closed the session in firm fall. The oil price trigger and the high inflation reading of the US producer price index (PPI) fuelled inflationary fears on the market and contributed to the prospect of a higher interest rate, penalizing the precious metal. In Comex, the metal di…
In the international oil market, both contracts go up 4.26 percent for the West Texas Intermediate (WTI) which is listed at $100.10 per barrel.
Rising prices at gas stations weigh on U.S. households and businesses
The Producer Price Index (PPI) increased 5.4% in year-on-year terms last month, the Department of Labor reported.
Fed Rate Hike Odds Rise to 61% After PPI Comes in Hotter than Expected
A hotter-than-expected wholesale inflation report landed Tuesday morning and prediction market traders immediately shifted their bets on what Chair Kevin Warsh does at the September 16 Fed meeting, flipping what had looked like a comfortable hold into the closest call of his tenure.
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