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The Bureau of Labor Statistics has released the Producer Price Index (PPI) report for September on Wednesday. The investors were eagerly waiting for the data as it is an important metric to gauge the current inflation of the nation. Meanwhile, the latest data showed that the US PPI witnessed a month-on-month surge of 0.5% in September, up from the market expectation of 0.3%.
US PPI Comes In Hotter-Than-Anticipated
The latest data showed that the US PPI for final demand rose 0.5% in September, after rising 0.7% in the previous month. Although the latest data showed that the inflation cooled in September, the number is still higher than the market anticipations.
On an annual basis, the US PPI rose 2.2% in the prior month, marking its largest increase since an advancement of 2.3% in April. Notably, the final demand, excluding foods, energy, and trade prices rose 2.8% in September, after rising 2.9% in August.
The core PPI, excluding food and energy prices, rose 0.3% in September, after rising 0.2% in August.
The US Dollar index rose 0.04% to 105.602 following the news. On the other hand, the US 10-year bond yield was down 1.36% to 4.588 as of writing on Wednesday.
Notably, according to the CME FedWatch Tool, the market now anticipates an 84.2% probability of a halt in the policy rate hike at the end of the year. However, the recent comments from the Fed official suggested that the Fed might announce another hike by the end of 2023.
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The Crypto Market Slips After The PPI Data
The cryptocurrency market has continued its downturn momentum following the PPI data. Meanwhile, the market has been highly volatile this week, with growing concerns over the Israel-Hamas war.
Meanwhile, the war has disrupted the global financial markets, let alone the crypto segment, as investors grew concerned over its impact on oil prices. Notably, the inflation, which is already higher than the Fed’s target level, can further move upward due to the ongoing geopolitical turmoil.
The global crypto market cap lost 1% and stayed at $1.06 trillion as of writing. Meanwhile, the overall market volume was up 4.58% over the past 24 hours to $26.1 billion during writing. Notably, the crypto market fear and greed index stayed at 42, suggesting a neutral condition in the market.
In crypto prices, Bitcoin price decreased by 1.45% to $27,123.63 as of writing on Wednesday, with its volume soaring 23.91% to $12.27 billion from yesterday. On the other hand, the Ethereum price plunged 0.70% to $1,570.39 at the same time, while its volume ticked down 4.10% to $5.81 billion.
Among other cryptos, the XRP price was down 2.04% to $0.4871 during writing, and its volume was up 2.67% to $765.96 million. Simultaneously, the Cardano price dropped by 0.86% to $0.2478, with its volume rising 9.10% to $124.42 million.
Meanwhile, now the investors await the Consumer Price Index (CPI) report, which is set to release on Thursday, October 12. Both these CPI and PPI data are pivotal economic indicators, which might set the stage for the upcoming Federal Open Market Committee Meeting scheduled for October 31 to November 1.
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