FX Empire – US Producer Prices
Meanwhile, consumer sentiment weakened after an unexpected decline in the Michigan Consumer Confidence Index. The statistics raised investors’ expectations for a 25 basis point rate cut by the Fed in November. However, this small decline coincided with expectations for a soft landing for the US economy.
Inflation insights from experts
Commenting on the US inflation data, Shane Oliver, head of investment strategy and chief economist at AMP, said:
“September US producer price inflation was moderate at 0% m/m/1.8% y/y, with core at 0.2% m/m/2.8% y/y. Combined with CPI, core PCE inflation in September The rate is around 0.23% m/m/2.6% y/y (down from 2.7% y/y in August), which likely puts the Fed on track for -0.25% in November.
China economic stimulus news and inflation data to watch
On Saturday, October 12, China’s Ministry of Finance announced new fiscal stimulus measures. However, economists said the measures did not put enough emphasis on promoting consumer spending and demand.
Chinese economic data released on October 13 highlighted the need for stimulus measures to stimulate demand. Producer prices fell 2.8% year-on-year in September, following a 1.8% year-on-year decline in August. The plunge in producer prices indicates weak demand and raises concerns about whether China will be able to meet its 5% growth target in 2024.
