SMM, July 12 / PRNewswire-Asianet /-the latest data released by the United States show that the US PPI rose 1.7 per cent in June from a month earlier, with a market expectation of 1.6 per cent and a previous value of 1.8 per cent, while the core PPI rose 2.3 per cent from a month earlier, with an expected 2.1 per cent and a previous value of 2.3 per cent.
(historical trend of PPI in the United States)
Previous data showed that overall US CPI growth slowed to 1.6 per cent in June from a year earlier, down from 1.8 per cent last month, but still in line with market expectations, with energy prices falling 3.4 per cent, the main drag on higher US prices.
(historical trend of CPI in the United States)
Core CPI, excluding food and energy prices, rose 0.3 per cent in June, the biggest increase since January 2018. Core CPI rose slightly to an annualised rate of 2.1 per cent after widespread expectations that the index would stabilize at 2.0 per cent and showed signs of a rise in potential inflation.
The stronger-than-expected consumer price index in the US raised doubts about whether the Fed would cut interest rates as expected. The Fed last month cut its inflation forecast for 2019 to 1.5 per cent from 1.8 per cent in March, but CPI data were surprisingly strong, but analysts believe this may not change the Fed's forecast for a rate cut this month.