US producer inflation surprised negatively, rising by 2.20% Y/Y (forecast 1.60%) and 0.50% M/M (forecast 0.30%). The main factors for this increase include the cost of services and energy.
This reading further complicates matters and slightly blurs the picture. On the one hand, dovish statements by FED members have emerged in recent days, and the probability of keeping interest rates at unchanged levels has been increasing. On the other hand, producer inflation surprises negatively once again. And tomorrow we have the Consumer Price Inflation (CPI) reading, which will largely determine the next moves of the American central bank.
Author: Szymon Gil, Broker at Michael / Ström Brokerage House
