United States PPI was flat in September on the back of lower gasoline prices, indicating a further stabilization of inflation.
On Friday, October 11, the United States Bureau of Labor Statistics released data showing that the United States PPI in September was 0% lower than the expected value of 0.1% and the previous value of 0.2%.
The PPI indicator, which excludes the more volatile food and energy categories, rose 0.2% month-on-month in line with expectations, 0.3% lower than the previous value and 2.8% year-on-year, higher than expectations and the previous value.
Institutional analysis pointed out that the United States PPI was flat in September, indicating that the inflation outlook remains favorable, supporting the view that the Fed will cut interest rates again next month.
After the release of the data, U.S. stock index futures rose slightly. S&P 500 futures rose 0.07% during the day, and Dow futures rose 0.12%; The U.S. dollar index was lower in the short term, falling 0.07% on the day.
United States 2-year Treasury yields fell 0.6bp to 3.98%.
Spot gold moved higher, hitting $2,650 an ounce upward, up 0.78% on the day.
The PPI in September was unchanged from the previous month due to the decline in gasoline costs
The report showed that the cost of services rose by 0.2%, down from the previous month's increase of 0.4%. Commodity prices, which exclude food and energy, rose 0.2% for the third consecutive month.
The final demand goods index fell 0.2% in September, following a flat in August. The decline was due to a 2.7% decline in final demand energy prices. In contrast, the final demand food index and the final demand goods (minus food and energy) index rose by 1.0% and 0.2%, respectively.
The final demand services index rose 0.2% in September and 0.4% in August. Prices for final demand services, excluding trade, transport and warehousing, rose 0.1%. The final demand trade services index and the final demand transportation and storage services index also rose by 0.2% and 0.3%, respectively.
The cost of intermediate demand processed goods, which reflects prices earlier in the production process, fell by 0.8% due to the sharp decline in diesel prices.
Commodity prices rebounded sharply after falling to a three-year low early last month. Geopolitical concerns in the Middle East have led to higher oil prices, while enthusiasm for favorable policies towards China has pushed metals prices higher.
United States CPI data released yesterday showed that the cost of doctor care and hospital outpatient visits was little changed, while airfares rebounded sharply. Housing, food and clothing costs rose, and inflation came in slightly higher than expected in September. After the release of the data, market expectations for a 25 basis point rate cut by the Fed in November rose.
Since peaking in the summer of 2022, inflation in the United States has slowed significantly, and annual price increases are more in line with what the Fed wants to see. As a result, Fed officials have now shifted from trying to control inflation to trying to keep the job market healthy, the other half of the so-called dual mission.
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