The global financial market, let alone the crypto market, was eagerly waiting for the US Producer Price Index (PPI) data for cues on inflation. The latest data showed that the US PPI inflation cooled to 2.2% in July, from 2.7% in the prior month. This data, which also came in line with the market expectations, appears to have further fueled optimism over a potential rate cut by the US Federal Reserve at their upcoming meeting.

US PPI Inflation Eases To 2.2%

The latest Labor Department data showed that the US PPI inflation came in at 0.1% in July, down from 0.2% in the prior month. Simultaneously, on a year-over-year (YoY) basis, the inflation was 2.2%, after it came in at 2.7% in June. Notably, the market was anticipating the inflation figures to show an acceleration of 0.2% for July.

However, the Core PPI for July, which excludes the food and energy prices, remains unchanged, after it accelerated at a rate of 0.3% in the prior month and down from the market expectations of 0.2%. On a 12-month basis, the Core inflation came in at 2.4%, down from 3% noted in June and lower than the market expectations of 2.7%.

Meanwhile, the PPI inflation figures are a key metric that the US Fed considers while deciding their policy rate plans. Although the latest figure showed that the inflation still stayed above the central bank’s 2% target range, the cooling figures appear to have bolstered market optimism over a potential rate cut by the Federal Reserve at their September meeting.

The post US PPI Inflation Cools To 2.2%, Crypto Market Recovery Ahead? appeared first on CoinGape.

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