US July PPI boosts September interest rate cut observations, which is lower than expected at +0.1% compared to the previous month

2024/8/14 2:59 AM GMT+9 (some excerpts)

The July wholesale price index (PPI, goods and services for final demand) announced by the US Department of Labor on the 13th rose 0.1% from the previous month (seasonally adjusted). Growth slowed from 0.2% in the previous month. Since it has been shown that inflationary pressure continues to moderate, observations that the US Federal Reserve (FRB) will decide to cut interest rates at next month's meeting have further increased.
This is an increase of 2.2% compared to the previous year. It had risen 2.7% in the previous month. Growth slowed as rising prices of goods (goods) were offset by lower service prices.
The economists' forecast compiled by Reuters was a 0.2% increase from the previous month and a 2.3% increase from the previous year.

＜Supporting September interest rate cut observations＞
The core index, which excludes the food, energy, and trade services sectors, rose 0.3 percent. There was a slight increase of 0.1% in June. This is a 3.3% increase compared to the same month last year. There was a 3.2 percent increase in June.
In the current PPI statistics, good figures were shown for many items used to calculate the personal consumption expenditure (PCE) price index, which the FRB is closely watching as an inflation index. As price increases ease, it seems that the FRB can implement policy management by keeping an even closer eye on the labor market rather than price stability.