The US Producer Price Index data was released moments ago at a time governed by fears of stagflation, after the continued rise in inflation rates despite the Fed’s strict policy since the beginning of the year, with the decline in economic growth rates in the largest economies in the world.
Inflation data.. Producer price index for the month of May
Year-on-year PPI rose by 10.8% while experts had expected it to rise by 10.9%.
On the other hand, the producer price index rose by 0.5% on a monthly basis, and experts expected it to increase by 0.8%.
Looking at the core PPI (excluding food and energy) annually, we find that it reached the levels of 8.3%, and experts expected it to stay at 8.6% as recorded last month. On a monthly basis, the core PPI increased by 1%, and experts expected it to rise by 0.6%.
Markets before the release of the data
Gold is now at $1,819.28 an ounce, with a marginal move, while silver is down to $21,133, down 0.56%.
The US Dollar Index is at 104.86 against a basket of foreign currencies, down 0.10%, but still at its highest level in 20 years.
The 10-year Treasury yield is 3.347%, down by 0.72%.
The two-year Treasury yields are trading at 3.3301%, an increase of 1.5%.
Markets after the release of the data
Dow futures rose more than 111 points, at 12:32 GMT.
The dollar index fell by 104.802, down 0.17%.
Bitcoin is down 7.04% to $22,389.