Manufacturing inflation in the US is worse than forecast, and noticeably so. Data for April:
- Core producer price index (PPI) - 0.5% with a forecast of 0.2% and the previous indicator of -0.1%.
- Producer price index (PPI) - 0.5% with a forecast of 0.3% and the previous indicator of -0.1%.
Let us remember that manufacturing inflation is a leading indicator of consumer inflation. The increase in producer prices in April will affect consumer spending in May. This means that we should not expect good consumer inflation figures in June. And that in general the fight against inflation in the United States is progressing with little success.
For risky asset markets (including cryptocurrency), this means that the chances of seeing a reduction in the US Federal Reserve interest rate in 2024 are decreasing.
Negative, and#BTCreacts to the news accordingly - with a fall of 1.3%. Although they are still buying it off - there may be “aftershocks”. And technically, as they wrote in the morning, there are now locally more arguments for continuing the correction.
Let us remind you that tomorrow, May 15, consumer inflation data in the United States will be released. BUT this will be data based on the results of April. If they turn out to be worse than forecasts, then, given the already expected bad consumer inflation data for May, this could hit the markets hard.
