Producer Price Index 12/5/2022

This article includes an explanation of the producer price index and its impact on the markets, with a look at previous data and expectations for today's data

The producer price index determines the rate of inflation (i.e. the rate of change in prices) experienced by industrialists when they purchase goods and services. It is a leading indicator of consumer inflation, the producer price index is taken into account to a large extent, and when it comes to readings at the peak, its effect on the market is equal to the effect of the consumer price index

Producer prices for final demand in the US rose 1.4% month over month in March 2022, the largest increase since at least December 2009 and above market expectations of 1.1%. The main contribution to the increase came from diesel fuel prices (20.4%) and the cost also increased for gasoline (4.9%), fresh and dry vegetables (42.4%), jet fuel (23%), iron and steel scrap (27.6%), and electric power (1.9 %). In contrast, beef and veal prices decreased by 7.3%, as did the cost of residential natural gas (-0.4%). Prices for services increased 0.9%, mainly due to higher profit margins of 1.2% for final demand trade services. The prices of final demand transportation and warehousing services also increased (5.5%) and final demand services minus trade, transportation and warehousing (0.3%). Compared to March 2021, producer prices increased by 11.2%, the largest increase since January 1981

Estimate for today's statement is 0.5%.

In the event that the data is released at a rate higher than expectations, it will affect the currency positively and vice versa

Note: Yesterday, the CPI recorded a positive reading of 0.3%, higher than expectations, which were 0.2%, and the core CPI 0.6%, higher than expectations, which were 0.6%.

The statement will be issued at 3:30 pm Beirut time

Tags : USD