thaitraderoficial
--
đ„ US PPI: Core producer inflation accelerates above expectations in July
The core Producer Price Index (PPI) in the United States, which excludes more volatile items, recorded a rise of 0.9% in July compared to June, according to data released by the country's Department of Labor. Year-on-year, the core increased by 3.3%, marking the highest growth in 12 months since February 2025.
The increase was primarily driven by final demand services (+1.1%), the largest increase since March 2022, and by food (+1.4%), especially fresh and dried vegetables (+38.9%). Meanwhile, final demand goods rose by 0.7%, while the core PPI, excluding food, energy, and commercial services, advanced by 0.6%, also the highest increase since March 2022.
Fed and monetary policy
With the PPI above expectations, the probability of a rate cut by the Fed in September fell to 92.7%, while the bet on a more aggressive cut of 50 basis points became null; prior to the PPI release, this possibility was at 2.2%. The market has returned to considering the maintenance of interest rates, with an estimated probability of 7.3%.
Impacts on the crypto market
The acceleration of producer inflation and the prospect of firmer interest rates may generate greater volatility in the cryptocurrency market. This scenario tends to create opportunities for those who can fraction entries, observe buying strength, and take advantage of rapid movements, while long-term investors should stay alert to monetary policy and its effects on global liquidity.
#PPI #BinanceSquareTalks #Chainbase
The core Producer Price Index (PPI) in the United States, which excludes more volatile items, recorded a rise of 0.9% in July compared to June, according to data released by the country's Department of Labor. Year-on-year, the core increased by 3.3%, marking the highest growth in 12 months since February 2025.
The increase was primarily driven by final demand services (+1.1%), the largest increase since March 2022, and by food (+1.4%), especially fresh and dried vegetables (+38.9%). Meanwhile, final demand goods rose by 0.7%, while the core PPI, excluding food, energy, and commercial services, advanced by 0.6%, also the highest increase since March 2022.
Fed and monetary policy
With the PPI above expectations, the probability of a rate cut by the Fed in September fell to 92.7%, while the bet on a more aggressive cut of 50 basis points became null; prior to the PPI release, this possibility was at 2.2%. The market has returned to considering the maintenance of interest rates, with an estimated probability of 7.3%.
Impacts on the crypto market
The acceleration of producer inflation and the prospect of firmer interest rates may generate greater volatility in the cryptocurrency market. This scenario tends to create opportunities for those who can fraction entries, observe buying strength, and take advantage of rapid movements, while long-term investors should stay alert to monetary policy and its effects on global liquidity.
#PPI #BinanceSquareTalks #Chainbase
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.