Producer Price Index 14/7/2022

The producer price index determines the rate of inflation (i.e. the rate of change in prices) experienced by industrialists when they purchase goods and services. It is a leading indicator of consumer inflation, the producer price index is taken into account to a large extent, and when it comes to readings at the peak, its impact on the market is equal to the effect of the consumer price index

US producer prices rose 0.8% monthly in May of 2022, after rising 0.4% in April and matching expectations. Commodity prices rose 1.4%, with the largest jump recorded for gasoline (8.4%), followed by jet fuel, residential natural gas, steel mill products, diesel fuel and processed small chickens. The cost of services rose 0.4%, as transportation and warehousing services rose 2.9%, specifically the transportation of goods by truck. Compared to a year earlier, prices paid to US producers rose 10.8%, slowing further from a 21-year high of 11.5% in March. Excluding the food, energy and trade components, producer prices rose 0.5% MoM (slightly below expectations of 0.6%) and 6.8% YoY.

Estimate for today's statement is 0.8%.

If the data is released at a rate higher than expectations, it will affect the currency positively and vice versa

This statement will be issued at 3:30 pm Mecca time