US wholesale prices rose more than expected in June, in another blow to the market’s hopes of an interest rate cut from the Federal Reserve.
Producer prices climbed 2.6% year on year in June, exceeding the 2.3% forecast, marking an acceleration from an upwardly revised 2.4% gain in May.
It gives a mixed picture for the US economy- yesterday’s inflation print for June came in softer than anticipated, sparking hopes of a dovish turn on central bank policy.
US policymakers are struggling to get a grip on the US’s overheated economy, at a time when the Fed’s counterparts in Europe and the UK are warming up to the prospect of rate cuts.
The hot PPI result has done nothing to quell the markets this Friday though. Wall Street was up 240 points as last count, while the tech-focused Nasdaq flew more than a percentage point higher.