Producer Price Index Surges 0.8% in July, Exceeds Expectations, Reigniting Inflation Concerns
Portfolio Pulse from Piero Cingari
The U.S. Producer Price Index (PPI) for final demand surged 0.8% in July, exceeding market expectations and reigniting inflation concerns. This follows a revised higher 0.2% in June and surpasses the projected 0.7% increase. The core PPI index, excluding food and energy, maintained a year-on-year increase of 2.4% for July, exceeding market expectations of 2.3%. Following the release of the PPI, futures on the S&P 500 and Nasdaq 100 tumbled, 0.5% and 0.3% respectively, and the U.S. dollar index rose 0.2%.
August 11, 2023 | 1:00 pm
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The U.S. dollar index, tracked by the Invesco DB USD Index Bullish Fund ETF (UUP), rose 0.2% following the release of the higher-than-expected PPI in July.
The unexpected surge in the PPI has led to a rise in the U.S. dollar index, which is tracked by UUP. This suggests that the ETF could see a short-term increase in value due to the strengthening of the dollar.
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