{"id":1037,"date":"2023-02-16T15:17:48","date_gmt":"2023-02-16T20:17:48","guid":{"rendered":"https:\/\/embarrdowns.com\/us-producer-prices-rise-faster-than-expected-re-igniting-inflation-fears\/"},"modified":"2023-02-16T15:17:53","modified_gmt":"2023-02-16T20:17:53","slug":"us-producer-prices-rise-faster-than-expected-re-igniting-inflation-fears","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/us-producer-prices-rise-faster-than-expected-re-igniting-inflation-fears\/","title":{"rendered":"US Producer Prices Rise Faster Than Expected, Re-Igniting Inflation Fears"},"content":{"rendered":"

US producer prices increased more than expected in January, rising 0.7% from the previous month, according to the US Bureau of Labor Statistics.[0]<\/a><\/sup> Economists surveyed by Dow Jones had predicted a 0.4% rise, whereas the actual increase was higher than that.[1]<\/a><\/sup> The core Producer Price Index, not including food and energy, rose by 0.5%, higher than the anticipated 0.3% gain.[2]<\/a><\/sup> Core, not including trade services, rose by 0.6%, surpassing the expected 0.2% growth.[3]<\/a><\/sup><\/p>\n

The strong producer price data has reignited inflation fears, with markets expecting the Federal Reserve to raise interest rates by a quarter of a percentage point when it meets next month.[4]<\/a><\/sup> Economists are citing seasonal factors as well as delayed price increases from prior months as the main cause of the January inflation rise.[5]<\/a><\/sup> The unusually warm winter could have contributed to the situation, and fuel prices, which can be unstable, increased in the same period.[5]<\/a><\/sup><\/p>\n

On Thursday, stocks decreased sharply following the release of the US government’s Producer Price Index report, which indicated that prices at the wholesale level had increased at a faster rate than anticipated in January.[6]<\/a><\/sup> At noon, the Dow Jones Industrial Average dropped 195 points to 33,933, the S&P 500 Index decreased by 24 points to 4,123, and the tech-oriented Nasdaq Composite lost 73 points to 11,998.[7]<\/a><\/sup><\/p>\n

Shopify Inc. saw a 16% decrease in its shares after announcing that its first-quarter revenue is likely to be lower than anticipated.[7]<\/a><\/sup> After its fourth quarter revenue beat expectations, as well as a 16% increase in active users, shares of Roku, Inc. (NASDAQ:ROKU) rose by 17.5%.[8]<\/a><\/sup> The company anticipated robust growth for the current quarter, attributing it to their streaming devices and content platform.[9]<\/a><\/sup> Shares of Cisco Systems (CSCO) surged by over 4% in pre-market trading due to their Q2 revenue of $13.59 billion, which was higher than the expected $13.43 billion. Additionally, the company raised their full-year revenue forecast to between 9% and 10.5%, higher than the consensus of +5.7%.[8]<\/a><\/sup><\/p>\n

This week, a report from the Labor Department revealed that consumer prices had increased by 6.4% in January, compared to the same month a year ago; this was slightly lower than the 6.5% in December and marked the seventh consecutive month of decreasing inflation.[4]<\/a><\/sup> [7]<\/a><\/sup><\/p>\n

0. <\/span>“U.S. Producer Prices Climb 0.7% In January, More Than Expected” RTTNews, 16 Feb. 2023, https:\/\/www.rttnews.com\/3344710\/u-s-producer-prices-climb-0-7-in-january-more-than-expected.aspx<\/a><\/a><\/p>\n

1. <\/span>“Higher Gasoline Prices Drive U.S. Producer Price Index Higher” OilPrice.com, 16 Feb. 2023, https:\/\/oilprice.com\/Latest-Energy-News\/World-News\/Higher-Gasoline-Prices-Drive-US-Producer-Price-Index-Higher.html<\/a><\/a><\/p>\n

2. <\/span>“Producer price index January 2023:” CNBC, 16 Feb. 2023, https:\/\/www.cnbc.com\/2023\/02\/16\/producer-price-index-january-2023-.html<\/a><\/a><\/p>\n

3. <\/span>“Producer Price Index – January 2023” Forex Factory, 16 Feb. 2023, https:\/\/www.forexfactory.com\/news\/1206036-producer-price-index-january-2023<\/a><\/a><\/p>\n

4. <\/span>“Producer Prices Rose, Pointing to Persistent Inflation” MarketWatch, 16 Feb. 2023, https:\/\/www.marketwatch.com\/story\/producer-prices-rose-pointing-to-persistent-inflation-4dda60ef<\/a><\/a><\/p>\n

5. <\/span>“Crypto Market Tumbles After U.S. PPI Data Comes At 6%” CoinGape, 16 Feb. 2023, https:\/\/coingape.com\/crypto-market-tumbles-after-u-s-ppi-data-rises-0-7-in-january\/<\/a><\/a><\/p>\n

6. <\/span>“Stocks slide as investors worry about more rate hikes” KAKE, 16 Feb. 2023, https:\/\/www.kake.com\/story\/48395912\/stocks-slide-as-investors-worry-about-more-rate-hikes<\/a><\/a><\/p>\n

7. <\/span>“S&P 500, Nasdaq, Dow lower on PPI data” Proactive Investors USA, 16 Feb. 2023, https:\/\/www.proactiveinvestors.com\/companies\/news\/1006414\/s-p-500-nasdaq-dow-lower-on-ppi-data-1006414.html<\/a><\/a><\/p>\n

8. <\/span>“Markets Today: Stock Index Futures Tumble as U.S. Jan PPI Exceeds Forecasts” Barchart, 16 Feb. 2023, https:\/\/www.barchart.com\/story\/news\/14268583\/markets-today-stock-index-futures-tumble-as-u-s-jan-ppi-exceeds-forecasts<\/a><\/a><\/p>\n

9. <\/span>“U.S. stocks are falling after hotter-than-expected producer prices By Investing.com” Investing.com, 16 Feb. 2023, https:\/\/www.investing.com\/news\/stock-market-news\/us-stocks-are-falling-after-hotter-than-expected-producer-prices-3005848<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

US producer prices increased more than expected in January, rising 0.7% from the previous month, according to the US Bureau of Labor Statistics.[0]<\/a><\/sup> Economists surveyed by Dow Jones had predicted a 0.4% rise, whereas the actual increase was higher than that.[1]<\/a><\/sup> The core Producer Price Index, not including food and energy, rose by 0.5%, higher than the anticipated 0.3% gain.[2]<\/a><\/sup> Core, not including trade services, rose by 0.6%, surpassing the expected 0.2% growth.[3]<\/a><\/sup><\/p>\n

The strong producer price data has reignited inflation fears, with markets expecting the Federal Reserve to raise interest rates by a quarter of a percentage point when it meets next month.[4]<\/a><\/sup> Economists are citing seasonal factors as well as delayed price increases from prior months as the main cause of the January inflation rise.[5]<\/a><\/sup> The unusually warm winter could have contributed to the situation, and fuel prices, which can be unstable, increased in the same period.[5]<\/a><\/sup><\/p>\n

On Thursday, stocks decreased sharply following the release of the US government’s Producer Price Index report, which indicated that prices at the wholesale level had increased at a faster rate than anticipated in January.[6]<\/a><\/sup> At noon, the Dow Jones Industrial Average dropped 195 points to 33,933, the S&P 500 Index decreased by 24 points to 4,123, and the tech-oriented Nasdaq Composite lost 73 points to 11,998.[7]<\/a><\/sup><\/p>\n

Shopify Inc. saw a 16% decrease in its shares after announcing that its first-quarter revenue is likely to be lower than anticipated.[7]<\/a><\/sup> After its fourth quarter revenue beat expectations, as well as a 16% increase in active users, shares of Roku, Inc. (NASDAQ:ROKU) rose by 17.5%.[8]<\/a><\/sup> The company anticipated robust growth for the current quarter, attributing it to their streaming devices and content platform.[9]<\/a><\/sup> Shares of Cisco Systems (CSCO) surged by over 4% in pre-market trading due to their Q2 revenue of $13.59 billion, which was higher than the expected $13.43 billion. Additionally, the company raised their full-year revenue forecast to between 9% and 10.5%, higher than the consensus of +5.7%.[8]<\/a><\/sup><\/p>\n

This week, a report from the Labor Department revealed that consumer prices had increased by 6.4% in January, compared to the same month a year ago; this was slightly lower than the 6.5% in December and marked the seventh consecutive month of decreasing inflation.[4]<\/a><\/sup> [7]<\/a><\/sup><\/p>\n

0. <\/span>“U.S. Producer Prices Climb 0.7% In January, More Than Expected” RTTNews, 16 Feb. 2023, https:\/\/www.rttnews.com\/3344710\/u-s-producer-prices-climb-0-7-in-january-more-than-expected.aspx<\/a><\/a><\/p>\n

1. <\/span>“Higher Gasoline Prices Drive U.S. Producer Price Index Higher” OilPrice.com, 16 Feb. 2023, https:\/\/oilprice.com\/Latest-Energy-News\/World-News\/Higher-Gasoline-Prices-Drive-US-Producer-Price-Index-Higher.html<\/a><\/a><\/p>\n

2. <\/span>“Producer price index January 2023:” CNBC, 16 Feb. 2023, https:\/\/www.cnbc.com\/2023\/02\/16\/producer-price-index-january-2023-.html<\/a><\/a><\/p>\n

3. <\/span>“Producer Price Index – January 2023” Forex Factory, 16 Feb. 2023, https:\/\/www.forexfactory.com\/news\/1206036-producer-price-index-january-2023<\/a><\/a><\/p>\n

4. <\/span>“Producer Prices Rose, Pointing to Persistent Inflation” MarketWatch, 16 Feb. 2023, https:\/\/www.marketwatch.com\/story\/producer-prices-rose-pointing-to-persistent-inflation-4dda60ef<\/a><\/a><\/p>\n

5. <\/span>“Crypto Market Tumbles After U.S. PPI Data Comes At 6%” CoinGape, 16 Feb. 2023, https:\/\/coingape.com\/crypto-market-tumbles-after-u-s-ppi-data-rises-0-7-in-january\/<\/a><\/a><\/p>\n

6. <\/span>“Stocks slide as investors worry about more rate hikes” KAKE, 16 Feb. 2023, https:\/\/www.kake.com\/story\/48395912\/stocks-slide-as-investors-worry-about-more-rate-hikes<\/a><\/a><\/p>\n

7. <\/span>“S&P 500, Nasdaq, Dow lower on PPI data” Proactive Investors USA, 16 Feb. 2023, https:\/\/www.proactiveinvestors.com\/companies\/news\/1006414\/s-p-500-nasdaq-dow-lower-on-ppi-data-1006414.html<\/a><\/a><\/p>\n

8. <\/span>“Markets Today: Stock Index Futures Tumble as U.S. Jan PPI Exceeds Forecasts” Barchart, 16 Feb. 2023, https:\/\/www.barchart.com\/story\/news\/14268583\/markets-today-stock-index-futures-tumble-as-u-s-jan-ppi-exceeds-forecasts<\/a><\/a><\/p>\n

9. <\/span>“U.S. stocks are falling after hotter-than-expected producer prices By Investing.com” Investing.com, 16 Feb. 2023, https:\/\/www.investing.com\/news\/stock-market-news\/us-stocks-are-falling-after-hotter-than-expected-producer-prices-3005848<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":1036,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/1037"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=1037"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/1037\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/1036"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=1037"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=1037"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=1037"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}