Breaking: US PPI Posts Biggest Drop Year On Year Since January 2021
After the Consumer Price Index (CPI) data for March came in less than expected, the U.S. Bureau of Labor Statistics on Thursday reported that the Producer Price Index (PPI) for final demand declined 0.5 percent in March. The PPI rise of -0.5% in March is against the expected PPI of 0.1%. On the year on year basis, the March PPI inflation rose by 2.7%, against the expected rise of 3%. Whereas the year on year PPI inflation rise in February was 4.9%. In March, the Consumer Price Index rose 0.1% on a seasonally adjusted basis, compared to an increase of 0.4% in February.
Also Read: This One Metric Indicates Strong Bitcoin (BTC) Accumulation Ahead of 2024 Halving
Prices for final demand excluding food, energy, and trade services edged up 0.1 percent in March 2023 after rising 0.2 percent in February. Whereas for the 12 months ended in March 2023, the index for final demand excluding foods, energy, and trade services increased 3.6 percent.
US PPI For March: Stock Futures Reaction
In January and February 2023, the Producer Price Index (PPI) for final demand came in as 0.4% and unchanged respectively. On an unadjusted basis, the index for final demand advanced 2.7 percent for the 12 months ended in March, the Bureau of Labor Statistics reported. Meanwhile, the Bitcoin price remains stable around the $30,200 level.
In reaction to this news, the US stock futures edged slightly higher. The Dow futures rose 0.17% while the S&P 500 Futures rose 0.29%. Whereas the Nasdaq futures rose by as much as 0.45% after PPI data was released. Hence, less than expected rise in CPI and PPI suggests that the US Federal Reserve‘s quantitative tightening measures are working effectively. Meanwhile, the release of March PPI data led to a drop of 0.46% in the U.S. Dollar Index (DXY).
This also means that the central bank finally has concrete data to incline towards easing the monetary policy somewhere in 2023. Overall, these economic indicators could mean further positive momentum for the crypto market.
- Coinbase Joins Ripple and Circle In Applying For National Banking License
- USDT Issuer Tether Eyes $200M Raise To Launch Tokenized Gold Treasury Company
- REX-Osprey Files For ADA, HYPE, XLM, SUI ETFs as Crypto ETF Frenzy Heats Up
- ChangeNOW’s Quiet Power Play in Helping Crypto Businesses
- Standard Chartered Sees Bitcoin Soaring to $200,000 by Year-End on ETF Boom
- BNB Coin Price Hits ATH as Derivatives Activity Soars—Is $1,520 the Next Stop?
- Aster Price Eyes $3 After Channel Breakout as Open Interest Surges to $1.37B
- Will XRP Price Hit $5 if the SEC Approves ETFs This Month?
- Bitcoin Price Hits $120K Ahead of Q4 — Can Citigroup’s Forecast Hold Up?
- Pi Network Price at Risk of Another Crash as Mysterious Whale Stops Buying
- Solana Price Eyes $360 After Bullish Retest As VisionSys AI Deploys $2B Treasury Strategy
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
