Focus on PPI Data Amid Inflation Concerns
Investors are gearing up for another crucial measure of U.S. inflation with the release of the Producer Price Index (PPI) for February on Thursday. This release holds extra significance following Tuesday’s hotter-than-expected Consumer Price Index (CPI) print, which raised doubts about the possibility of a Federal Reserve rate cut in June.
Insight into Inflation Trends
The PPI provides insight into inflation from the perspective of product manufacturers or service suppliers and is considered a leading indicator for the more widely-followed CPI. Analysts anticipate a 0.3% increase in the PPI for February, with an annual rise of 1.1%. The core annual figure, excluding volatile food and energy prices, is expected to dip to 1.9% from the previous month’s 2.0%.
Persistent Inflation Challenges for the Fed
Tuesday’s CPI data revealed a 0.4% rise in consumer prices last month, with an annual increase of 3.2%. This persistent inflationary pressure poses challenges for the Federal Reserve, especially as officials prepare for next week’s meeting where interest rates are expected to remain unchanged.
Positive Outlook from Apple Supplier Foxconn
In other news, Apple supplier Foxconn reported a significant jump in fourth-quarter profit despite a slight decline in revenue. The company remains optimistic about the year ahead, driven by robust demand for AI servers and consumer electronics.
Oil Prices Remain Near Four-Month Highs
Oil prices continued their upward trajectory on Thursday, maintaining recent gains and hovering near four-month highs. This follows a substantial drawdown in crude inventories, signaling tighter fuel supplies. Market sentiment was further bolstered by news of the U.S. purchasing oil for its Strategic Petroleum Reserve and ongoing geopolitical tensions.
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