According to the U.S. Bureau of Labor Statistics, the U.S. producer price index (PPI) rose by 0.7% in August, surpassing the consensus expectation of 0.4%. This marks the highest increase in final demand prices since June of the previous year. On a year-over-year basis, the U.S. PPI increased by 1.6% last month.
The prices for final demand, excluding food, energy, and trade prices, experienced a significant jump of 3% year-over-year in August, the highest advance since April’s surge of 3.4%.
However, the core PPI, which excludes food and energy prices, only increased by 0.2%, aligning with market expectations. Investors were eagerly awaiting the PPI data for further insights into the nation’s economic condition.
This week was crucial for traders, as several key economic data releases were scheduled, which could influence the future actions of the U.S. Federal Reserve. The release of the U.S. consumer price index (CPI) data on September 13, showing a 3.7% increase, raised concerns once again that inflation is still not meeting the Fed’s 2% target.
Additionally, data from the U.S. Labor Department revealed that initial jobless claims rose by 3,000 to 220,000 compared to the previous week. Employment data also plays a significant role in shaping market sentiments.
Following the release of the PPI data, the cryptocurrency market remained mostly positive, with major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and XRP (XRP) experiencing gains. The global crypto market cap increased by 0.87% in the last 24 hours to reach $1.05 trillion, while the trading volume decreased by 8.80% to $27.07 billion.
After the data release, the price of Bitcoin rose by 0.73% to $26,413.86, with a market cap of $514,803,283,349, up 0.94%. Ethereum noted gains of 1.53% and traded at $1,621.67, while Solana’s price increased by 3.88% to $18.82. XRP also saw a slight increase of 0.53% and traded at $0.4831. The crypto market Fear and Greed Index remained at 36, indicating that the market is still experiencing fear.
