Support
US producer inflation cooler than expected In July
U.S. inflation pressure softens with a modest PPI increase, while the UK sees an unexpected drop in unemployment
US producer prices increased by less than forecast in July
UK unemployment rate dropped to 4.2% in June, defying expectations
US PPI rose 0.1% in July, below the anticipated 0.2%
The U.S. Producer Price Index (PPI) for final demand rose by a modest 0.1% in July, missing market expectations of a 0.2% increase, according to data released on Thursday. The rise was driven by a 0.6% uptick in prices for goods, which was partially offset by a 0.2% decline in services. Excluding volatile components such as food, energy, and trade services, the core PPI climbed by 0.3% for the month.
On an annual basis, the PPI increased by 2.2% in the 12 months through July, decelerating from the 2.7% recorded in June and falling short of the 2.3% forecasted by analysts. Core PPI, which strips out food, energy, and trade services, rose by 3.3% year-over-year.
Following the release of the data, U.S. stock markets saw gains, and bond yields dropped, as the softer-than-expected inflation figures reinforced speculation that the Federal Reserve might proceed with a widely anticipated interest rate cut in September.
UK unemployment rate falls to 4.2% in June
In the United Kingdom, the unemployment rate fell to 4.2% in June, down from 4.4% in the previous month and contrary to expectations of a rise to 4.5%, according to the latest official data. Payrolled employment in July also increased by 24,000, or 0.1% month-over-month.
Wage growth remained robust, with average earnings including bonuses rising by 5.4% year-over-year in the three months to June, albeit slower than the 5.7% increase recorded in May but above the expected 4.6%. Average earnings excluding bonuses grew by 4.5% year-over-year, down from 5.7% in May, also falling short of the 4.6% forecast.
