{"id":195950,"date":"2024-07-12T10:15:00","date_gmt":"2024-07-12T14:15:00","guid":{"rendered":"https:\/\/ibkrcampus.eu\/uncategorized\/june-producer-inflation-exceeds-forecasts-restrains-investor-euphoria-following-consumer-price-relief\/"},"modified":"2024-07-15T09:14:29","modified_gmt":"2024-07-15T09:14:29","slug":"june-producer-inflation-exceeds-forecasts-restrains-investor-euphoria-following-consumer-price-relief","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.eu\/campus\/traders-insight\/securities\/macro\/june-producer-inflation-exceeds-forecasts-restrains-investor-euphoria-following-consumer-price-relief\/","title":{"rendered":"June Producer Inflation Exceeds Forecasts, Restrains Investor Euphoria Following Consumer Price Relief"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\" id=\"h-zinger-key-points\">ZINGER KEY POINTS<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Friday&#8217;s inflation data is unlikely to derail rate cut expectations altogether.<\/li>\n\n\n\n<li>That&#8217;s because the Federal Reserve places an emphasis on consumer price trends.<\/li>\n<\/ul>\n\n\n\n<p>The Producer Price Index released Friday revealed a higher-than-expected increase in June, surprising investors who had grown confident about interest rate cuts following the sharper-than-anticipated drop in the monthly Consumer Price Index inflation gauge&nbsp;<a href=\"https:\/\/www.benzinga.com\/economics\/macro-economic-events\/24\/07\/39728268\/inflation-slows-more-expected-to-3-in-june-heightens-expectations-for-rate-cuts-t\" target=\"_blank\" rel=\"noreferrer noopener\">released a day earlier.<\/a><\/p>\n\n\n\n<p>On an annual basis compared to June 2023, the overall producer basket rose by 2.6%, reaching its highest point since March 2023.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">June PPI Report: Key Highlights<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In June, the headline PPI for final demand rose by 0.2% month-over-month, rebounding sharply from the upwardly revised flat reading in May and surpassing economists\u2019 expectations \u2013 as tracked by TradingEconomics \u2013 of a 0.1% increase.<\/li>\n\n\n\n<li>The June rise in the index for final demand is attributed to a 0.6% monthly increase in prices for final demand services, while the index for final demand goods decreased by 0.5%.<\/li>\n\n\n\n<li>The 2.6% annual surge in the headline number represented a 0.2 percentage point increase from the upwardly revised May print, and topped estimates of 2.3%.<\/li>\n\n\n\n<li>The core PPI \u2013 which tracks prices for final demand less foods, energy, and trade services \u2013 advanced at a 0.4% monthly pace, advancing from May\u2019s upwardly revised 0.3% growth and surpassing estimates of 0.2%.<\/li>\n\n\n\n<li>On an annual basis, the core PPI climbed by 3.1%, up from the previous 2.3% and marking the highest rate of increase since April 2023.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Market Reactions<\/h3>\n\n\n\n<p>Prior to the PPI report, traders had assigned a nearly 95% chance on a September rate cut, according to&nbsp;<strong>CME Group<\/strong>\u2018s FedWatch tool.<\/p>\n\n\n\n<p>The hotter-than-expected reading may now temper these heightened expectations, though it is unlikely to derail them altogether given the Federal Reserve\u2019s stronger emphasis on consumer price trends.<\/p>\n\n\n\n<p>Futures on major U.S. equity averages traded flat in Friday\u2019s premarket trading. Treasury yields inched slightly higher across the board and the dollar recouped early session losses against peers.<\/p>\n\n\n\n<p>On Thursday, tech stocks sold off despite a lower-than-expected CPI report. <\/p>\n\n\n\n<p>&#8212;<\/p>\n\n\n\n<p>Originally Posted July 12, 2024 &#8211; <a href=\"https:\/\/www.benzinga.com\/economics\/macro-economic-events\/24\/07\/39748331\/june-producer-inflation-exceeds-forecasts-restrains-investor-euphoria-following-c\">June Producer Inflation Exceeds Forecasts, Restrains Investor Euphoria Following Consumer Price Relief<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Friday&#8217;s inflation data is unlikely to derail rate cut expectations altogether. That&#8217;s because the Federal Reserve places an emphasis on consumer price trends.<\/p>\n","protected":false},"author":1128,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[146,147,8,12,148,7],"tags":[],"contributors-categories":[407],"class_list":{"0":"post-195950","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-macro","7":"category-north-america","8":"category-region","9":"category-securities","10":"category-text-articles","11":"category-traders-insight","12":"contributors-categories-benzinga"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>June Producer Inflation Exceeds Forecasts, Restrains Investor Euphoria Following Consumer Price Relief<\/title>\n<meta name=\"description\" content=\"Friday&#039;s inflation data is unlikely to derail rate cut expectations altogether. 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