Fiper | Producer Price Index

The Producer Price Index determines the rate of inflation (i.e. the rate of change in prices) that industrialists experience when they purchase goods and services. When industrialists pay more money to obtain goods and services, then the possibility of higher costs being passed on to the consumer increases, and therefore the Producer Price Index is believed to It is a leading indicator of consumer inflation. The Producer Price Index is taken into consideration to a large extent, and when it reaches peak readings, its impact on the market is equal to the impact of the Consumer Price Index.
US producer prices rose 0.7% in August 2023, the highest level since June 2022, and beat market expectations for a 0.4% rise. Commodity prices rose 2%, driven by a 10.5% rise in energy costs. Meanwhile, service prices increased by 0.2%, mainly due to higher transportation and storage costs (1.4%). Excluding volatile items such as food and energy, the producer price index rose 0.2%, after a 0.4% rise in the previous month. On an annual basis, producer price inflation reached its highest level in four months at 1.6%, while the core rate fell to 2.2%, recording its lowest level since January 2021.