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.
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