Producer Price Index (PPI) inflation in the United States rose to 2.6%, based on the latest release by the US Bureau of Labor Statistics on Friday. Traders who are waiting for further guidance are cautious about Fed interest rate cuts as inflation data is higher. Bitcoin traders also reacted immediately and the price of BTC started to show a selling phase.
The release of the US Bureau of Labor Statistics showed that the annual PPI stood at 2.6%, higher than market expectations of 2.3%, up from 2.2% last month. Core PPI YoY also recorded a 0.5% increase to 3.0%, significantly higher than the previous month's 2.3%.
In month-on-month changes, PPI also increased from -0.2% to 0.2%, an increase of 0.4% in a month. Meanwhile, Core PPI rose from 0.3% to 0.4% in a month.
Futures linked to the S&P 500, Dow Jones Industrial Average, and Nasdaq 100 were flat after the inflation data. PPI inflation has risen for five consecutive months now, even as the US CPI is declining. However, the US Federal Reserve does not consider PPI as one of the main metrics to measure inflation, this increase has raised concerns about the Fed's interest rate cut schedule.
The US Dollar Index showed volatility after the PPI inflation data, with the current reading at 104.34. DXY has declined after the CPI data. Meanwhile, US Treasury yields rose by 0.021% to 4.205%, but down from 4.47% earlier this month.
BTC price remains in a downtrend and is currently trading at $57,713.
