The U.S. Department of Labor announced the latest October Producer Price Index (PPI) yesterday. The result was a monthly decrease of 0.5%. Compared with the 0.4% monthly increase in September, the increase turned from an increase to a decrease. It was even lower than the 0.1% increase expected by the market. The converted annual growth rate was 1.3%, which was lower than the 1.9% growth expected by the market. Compared with the 2.2% annual growth in September, it was significantly cooler, because it is known that US inflation has gradually gained certain control.

The producer price index also includes food and energy prices, which have relatively volatile prices. If food and energy prices are excluded, the core PPI monthly growth rate in October was zero, and the annual growth rate was only 2.4%, which was lower than market expectations of an annual growth rate of 2.7%. %. PPI has been regarded as a leading indicator of inflation in the past. It measures the price index of raw materials purchased by producers. After a period of time, it will gradually be reflected in the consumer price index.

The current monthly decrease in PPI, which is lower than market expectations, has not given the market too many surprises. Last week's consumer price index has confirmed that inflationary pressure in the United States has eased, and the U.S. stock market has restarted its rise. Although Bitcoin once fell back to $35,000 yesterday, However, as PPI confirmed that concerns about inflation have been eliminated, Bitcoin has risen back to US$37,000 and will even exceed US$38,000. Future employment reports will only move in the direction of recession, and the market atmosphere will be conducive to the rise of risk assets.

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〈MICA Daily｜US PPI index is lower than expected, Bitcoin once exceeded 38,000 US dollars〉 This article was first published on "Blocker".