Forex
US Producer Price Index Supports Rate Hike Bets Amid Oil Price Surge
The US Producer Price Index (PPI) rose 0.4% in August, matching market expectations and accelerating from the 0.1% increase recorded in July.
Annual producer inflation climbed to 5.4%, slightly above the 5.3% forecast and up from 4.8%. Core PPI, which excludes food and energy prices, rose 0.2% MoM, below the 0.3% expected.
The strong PPI figures have strengthened bets for a Federal Reserve rate hike, with traders now pricing in around a 64% probability of a 25-basis-point increase at the September 15-16 meeting.