Breaking: US PPI Comes In Red Hot At 2.6%, Bitcoin Traders Turns More Cautious

The Producer Price Index (PPI) inflation in the United States rises to 2.6%, according to the latest release by The U.S. Bureau of Labor Statistics on Friday. Traders waiting for further cues became cautious about Fed rate cuts as inflation data was hotter. Bitcoin traders also responded immediately and BTC price started showing some selloff.

PPI Inflation Rise Delays Bitcoin Price Recovery

The U.S. Bureau of Labor Statistics release showed that annual PPI came in at 2.6%, higher than market expectations of 2.3, up from 2.2% last month. Core PPI YoY also came 0.5% higher at 3.0%, much higher than 2.3% in the previous month.

In month-over-month change, PPI have also increased from -0.2% to 0.2%, a rise of 0.4% in a month. Meanwhile, Core PPI rises from 0.3% to 0.4% in a month. 

Futures tied to S&P 500, Dow Jones Industrial Average, and Nasdaq 100 were flat after the inflation data. The PPI inflation has increased for five consecutive months now, even as US CPI is declining. While The U.S. Federal Reserve doesn’t consider PPI among key metrics to gauge inflation, the rise has raised concerns over Fed rate cuts timeline.

US Dollar Indes (DXY) shows volatility after PPI inflation data, with a reading currently at 104.34. DXY has declined after the CPI data. Meanwhile, US treasury yield has increased by 0.021% to 4.205%, but fell from 4.47% earlier this month.

Also Read: Reasons Why Bitcoin Price Is Dropping Despite Fed Rate Cut Odds?

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