Year over year wholesale inflation pulls back to +5.5%, 100 bps lower than last month's initial print.
Spot gold prices are modestly higher and spot silver prices are weaker ahead of the North American market open Wednesday, as a softer U.S. inflation mix supported precious metals while renewed Strait of Hormuz tension kept crude oil prices and Treasury yields elevated.
US stock futures rise after soft CPI boosted rate cut hopes. See why today's PPI report, earnings and Treasury yields could decide the next move for US stocks.
May Headline PPI Data Highest Since November 2022.
New wholesale inflation numbers have reached their highest levels since March and November of 2022, respectively.
The gold market is approaching its earlier lows after the latest data shows U.S. producers saw mixed price pressures last month.The headline Producer Price Index (PPI) rose 1.1% in May, following April's downwardly revised 1.1% rise, the U.S. Labor Department announced on Thursday. The latest inflation data was higher than expectations, as economists looked for a 0.7% increase.
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March Headline PPI Highest in Three Years.
+4.0% on headline PPI year over year is a big jump of +60 bps month over month on final demand.
Neils Christensen has a diploma in journalism from Lethbridge College and has more than a decade of reporting experience working for news organizations throughout Canada. His experiences include covering territorial and federal politics in Nunavut, Canada.
Markets this week focus on PPI inflation data, Fed speakers, and key earnings from Goldman Sachs and Netflix as investors assess policy and growth signals.
Here's a breakdown of the markets and stocks that could be most positively exposed to an inflationary increase after February's hot Producer Price Index data.