financetom
Economy
financetom
/
Economy
/
US producer prices unchanged in September
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US producer prices unchanged in September
Oct 11, 2024 5:58 AM

WASHINGTON (Reuters) - U.S. producer prices were unchanged in September, pointing to a still-favorable inflation outlook and supporting views that the Federal Reserve would cut interest rates again next month.

The unchanged reading in the producer price index for final demand last month followed an unrevised 0.2% gain in August, the Labor Department's Bureau of Labor Statistics said on Friday. Economists polled by Reuters had forecast the PPI edging up 0.1%.

In the 12 months through September, the PPI increased 1.8% after climbing 1.9% in August. Government data on Thursday showed consumer prices rising slightly more than expected in September, lifted by higher food costs.

Most economists did not view the uptick in inflation as a sign that price pressures were building up again. Housing inflation cooled considerably in September. Economists expected mild increases in September in the inflation measures tracked by the U.S. central bank for its 2% target.

Traders anticipated a 25 basis points rate reduction at the Fed's Nov. 6-7 policy meeting.

They have abandoned expectations for a half-point rate reduction following a strong September employment report as well as other data that have offered a more upbeat picture of the economy than previously thought.

The Fed last month cut its policy rate by 50 basis points to the 4.75%-5.00% range. It hiked rates by 525 basis points in 2022 and 2023.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Analysis-Rising US debt burden spooks some bond investors ahead of November election
Analysis-Rising US debt burden spooks some bond investors ahead of November election
May 24, 2024
NEW YORK (Reuters) - Investors are bracing for a flood of U.S. government debt issuance that over time could dwarf an expected rally in bonds, as they see no end in sight for large fiscal deficits ahead of this year's presidential election. While bond markets so far this year have been driven mostly by bets on how deeply the Federal...
Global equity funds see strong weekly inflows on U.S. rate cut hopes
Global equity funds see strong weekly inflows on U.S. rate cut hopes
May 24, 2024
(Reuters) - Global equity funds secured robust inflows in the week ended May 22, driven by optimism over slowing inflation and expectations of U.S. Federal Reserve rate cuts in the latter half of the year. According to Lipper data, global equity funds attracted $11.1 billion in inflows, a 22% increase from the previous week. U.S. equity funds received most of...
US Dollar Falls Widely in Europe as 'High Beta' FX Outperform
US Dollar Falls Widely in Europe as 'High Beta' FX Outperform
May 24, 2024
06:48 AM EDT, 05/24/2024 (MT Newswires) -- The US dollar fell against most major currencies in early European trade on Friday as 'high beta' counterparts outperformed despite weakness in some risky asset prices and a broad bid for government bonds. Most major currencies rose against the US dollar with the Swiss franc and Japanese yen the only exceptions in the...
Central bankers should acknowledge blind spots in a less certain world, Fed's Mester says
Central bankers should acknowledge blind spots in a less certain world, Fed's Mester says
May 24, 2024
AMELIA ISLAND, Florida (Reuters) - In nearly 40 years working for and helping lead the Federal Reserve, Cleveland Fed President Loretta Mester was part of a revolution that saw the U.S. central bank offer ever more detailed and plentiful commentary on the economy and monetary policy. As she heads towards mandatory retirement in June, the Cleveland Fed chief has a...
Copyright 2023-2025 - www.financetom.com All Rights Reserved