FRESH US DATA: INFLATION COMES IN LOWER THAN EXPECTED
Markets just received an important signal: US Producer Price Inflation (PPI) for August came in weaker than analysts had forecast. This could become a key factor for the Federal Reserve’s upcoming interest rate decision.
✅ Report results:
Monthly: -0.1% (forecast +0.3%, previous +0.9%)
Yearly: 2.6% (forecast and previous 3.3%)
🟢 For markets, this is positive news. Why? Because July’s “spike” in inflation now looks more like a one-time event rather than the start of a new upward trend. With wholesale prices falling, consumer prices may also rise more slowly in the coming months.
📉 Another important detail: labor market data has been revised, showing employment is weaker than previously believed. Together, this paints a picture of a cooling economy.
💡 What does this mean for the Fed? The chances are rising that policymakers might opt for a bigger move — cutting rates by 0.5% instead of the standard 0.25%.
🚀 For markets, this could trigger a short-term rally. Both stock indices and cryptocurrencies may see upward momentum leading up to the Fed’s meeting.
👉 The big question: will the Fed take the bold step of a 0.5% cut, or will it play safe with just 0.25%?
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