Producer Price Index (PPI)
The PPI measures the average change in selling prices received by domestic producers for their output. It's often considered a leading indicator for the CPI, as changes in producer prices can eventually be passed on to consumers.
* Higher-than-expected PPI: Similar to the CPI, a high PPI suggests increasing inflation at the producer level. This can create concerns about future consumer inflation and may support the Federal Reserve's stance on maintaining a hawkish monetary policy, which could negatively impact crypto.
* Lower-than-expected PPI: A low PPI indicates that inflationary pressures are easing at the producer level. This is generally a positive signal for the crypto market, as it reinforces the idea that inflation is under control and could lead to a more accommodative monetary policy from the Federal Reserve.
