Breaking.. US's Producer Prices surprises in September

On Thursday, the U.S. Bureau of Labor Statistics released data on the U.S. Producer Price Index (PPI) for September, which came in higher than market expectations.

According to the data, the U.S. Producer Price Index grew by 1.8% year-on-year in September, which was lower than expectations of 1.6%. Notably, the August reading was 1.9%, revised up from 1.7%.

On a monthly basis, the U.S. Producer Price Index recorded no growth (0%) in September, which was below market expectations of a 0.1% increase, following a 0.2% growth in producer prices in August.

Additionally, the core U.S. Producer Price Index experienced a year-on-year growth of 2.8% in September, surpassing market expectations which anticipated a growth of around 2.7%. The August reading had recorded a growth of 2.6%, after being revised from 2.4%.

On a monthly basis, the core Producer Price Index rose by 0.2%, aligning with market expectations for a 0.2% increase, following a growth of 0.3% in August.

It is worth noting that the Producer Price Index measures the change in prices for final goods and services offered by producers, excluding food, energy, and trade. It consists of several indices that measure the average change in prices for goods and services. Recently, the importance of this index has increased, and it has a significant impact on U.S. dollar movements against other currencies, as it is considered an early indicator of U.S. inflation, which influences the Federal Reserve's interest rate decisions.