US PPI Inflation Accelerates 3%, What’s Next For Crypto Market?

Investors eagerly awaited the crucial US Producer Price Index (PPI) data, especially after the recent CPI inflation accelerated last month. Notably, the latest data showed that the US PPI accelerates at 3%, up from the 2.4% figure noted in October. The surge also exceeded market forecasts, dampening the hopes of the crypto market enthusiasts. Besides, it also sparked concerns regarding the anticipated rate cut at the Fed’s upcoming gathering next week.

US PPI Inflation Comes In At 3% In November

The latest Labor Department data showed that the US PPI accelerated at 3% in November, up from 2.4% noted in the prior month. It marks the largest increase since February 2023, exceeding market forecasts of 2.6%. On a monthly basis, the headline inflation comes in at 0.4%, as compared to market estimates and the prior month’s figure of 0.2%.

On the other hand, the Core PPI, which excludes food and energy prices, saw an increase of 3.4%, as compared to 3.1% in October. It also tops the market forecast of a 3.2% surge. On a monthly basis, the Core PPI comes in at 0.2% in November, in line with the market expectations and down from 0.3% noted in the prior month.

This hotter-than-anticipated figure appears to have weighed on the traders’ sentiment. Besides, it also sparked concerns over a potential hawkish move by the US Federal Reserve at their next week’s gathering. Notably, the market was previously betting towards a potential 25 bps Fed rate cut announcement next week.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.