US producer prices unchanged in September

Published On Oct 11, 2024, 10:10 AM

In September, U.S. producer prices remained unchanged, indicating a stable inflation outlook that may lead the Federal Reserve to consider further interest rate reductions. The Producer Price Index (PPI) for final demand held steady after a slight increase of 0.2% in August. Year-over-year, there was a 1.8% increase in PPI, reflecting minimal inflationary pressure. Although consumer prices rose slightly in September due to higher food costs, overall inflationary impacts are expected to remain controlled. Analysts predict a potential 25 basis points rate cut by the Fed in their upcoming policy meeting.

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Due to the stable inflation outlook and potential for interest rate cuts, sectors sensitive to interest rates, such as utilities and consumer discretionary, are likely to perform well. Additionally, with a favorable inflation environment, equities may see upward pressure in the coming months.

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