Click Here for 150+ Global Oil Prices
Start Trading CFDs Over 2,200 Different Instruments
Click Here for 150+ Global Oil Prices
Click Here for 150+ Global Oil Prices
Start Trading CFDs Over 2,200 Different Instruments
Click Here for 150+ Global Oil Prices
Click Here for 150+ Global Oil Prices
Start Trading CFDs Over 2,200 Different Instruments
Click Here for 150+ Global Oil Prices
Click Here for 150+ Global Oil Prices
Start Trading CFDs Over 2,200 Different Instruments
Click Here for 150+ Global Oil Prices
Oil Exports from Iraq’s Basra Port Stop—Repair Could Take Weeks
A weak yen and high…
With gasoline prices continuing to…
Charles is a writer for Oilprice.com
The U.S. Bureau of Labor Statistics has released a report showing the second consecutive monthly drop in producer prices, prompted by steadily declining gasoline prices.
The Producer Price Index (PPI) shows final demand dropping by 0.1% in August, compared with a 0.4% drop in July.
Overall, the latest PPI shows a 1.2% drop in prices for goods.
That drop in prices for goods is attributed to continually falling gasoline prices, which have dropped nearly 13%.
The national average per gallon of gas on Monday dropped to $3.703, according to AAA , down from $3.959 a month ago, and closing in on the year-ago average of $3.177.
Wednesday’s PPI release is contributing to rising optimism that inflation is easing.
The index also suggests that some supply chain issues are improving.
Reuters cited FWDBONDS chief economist Christopher Rupkey as saying that the PPI release was a “bit of good news that the economy's supply chain headwinds are starting to diminish”.
"While inflation isn't completely contained, there is hope that the diminished pressures on PPI goods prices will lead to less inflation in the future for the goods sitting on store shelves that consumers buy,” Rupkey told Reuters.
The index release comes on the heels of the Labor Department’s inflation report on Tuesday , which showed prices rose 8.3% in the past 12 months through August. While this was down from 8.5% in July–again due to falling gasoline prices, while food, housing and medical care rose significantly–the report missed economists’ expectations.
The United States saw Inflation peak at 9.1% in June.
Wall Street responded with the biggest declines in over two years, and expectations are now that the Federal Reserve will hike interest rates by another 75 basis points next week.
By Charles Kennedy for Oilprice.com
More Top Reads From Oilprice.com:
Join the discussion | Back to homepage
Offshore Drilling Rates Jump, Could Rise Further To $500,000 Per Day
Congress Rushes To Prevent Railway Strike
Charles is a writer for Oilprice.com
The Oil Giant Planning To Make Russian Gas Irrelevant By 2025
World’s Second-Largest Steelmaker Closes European Plant
Iran Is Ready To Release Millions Of Barrels Of Oil Into The Market
Surprise Crude Build Weighs On Oil Prices
Gazprom Will Halt Nord Stream Gas Flows On Aug 31
The World’s Energy Problem Is Far Worse Than We’re Being Told
Europe’s Energy Crisis Has Ended Its Era Of Abundance
Recycling Could Help Ease The Metals Squeeze
“Lehman Event” Looms For Europe As Energy Companies Face $1.5T In Margin Calls
The materials provided on this Web site are for informational and educational purposes only and are not intended to provide tax, legal, or investment advice.
Nothing contained on the Web site shall be considered a recommendation, solicitation, or offer to buy or sell a security to any person in any jurisdiction.
Trading and investing carries a high risk of losing money rapidly due to leverage. Individuals should consider whether they can afford the risks associated to trading.
74-89% of retail investor accounts lose money. Any trading and execution of orders mentioned on this website is carried out by and through OPCMarkets.
Merchant of Record: A Media Solutions trading as Oilprice.com