Data released by the U.S. Department of Labor on Thursday (11th) showed that the producer price index (PPI) in July increased by 9.8% year-on-year, which was lower than market expectations of 10.4% and 11.3% in June; the monthly growth rate of PPI in July was negative. 0.5%, the market expected 0.2%, and the previous value was revised to 1%, which was the first negative value since April 2020.
Core PPI unexpectedly turned negative for the first time in more than two years in July, largely reflecting lower energy costs and representing a welcome easing of inflationary pressures.
Core PPI, excluding food and energy, rose 7.6% year-on-year in July, in line with market expectations, lower than the revised 8.4% in June, but still close to a record high; July core PPI reported a monthly growth rate of 0.2%, low 0.4% of the expected and previous value.
It is worth noting that the PPI has exceeded the consumer price index (CPI) for 19 consecutive months, which means that US companies are still facing huge pressure on profit margins.
After the data was released, U.S. stock futures rose slightly,Dowandthat fingerFutures rose 0.7%;US dollar indexIn the short term, it was down 10 points at 104.76.
By category, final demand commodity prices fell 1.8% in July, having previously risen for six consecutive months and the largest decline since April 2020, of which 80% can be attributed to a decline in gasoline prices (down 16.7%) . Final demand service prices rose 0.1% in July, marking the third straight month of increases.
The recently announced July CPI rose 8.5% year-on-year, which was better than market expectations of 8.7% and down 60 basis points from the previous value of 9.1%. In July, the CPI rose 0%, which was also better than the market expectation of 0.2%, and fell sharply from the previous value of 1.2%.
In addition to the PPI data this time, US inflation eased in July, but it was still close to a record high.
The CME Group FedWatch tool showed that the probability of the Fed raising interest rates 3 yards in August fell to 33%, and the probability of raising interest rates 2 yards (50 basis points) rose to 67%. However, the final rate hike remains to be seen in August inflation data.
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