US Producer Price Index hints at easing of cost pressures – Interest rates fall slightly


Interest rates on your long-term government bonds have been declining moderately, with no change following the US producer price data reported this afternoon.

Producer prices grew less than expected in December. There was a decline in particularly important energy and food prices, suggesting that cost pressures could be on the rise.

After the announcement of the December change in the producer price index, the market interest rate on the 10 – year US government bond fell by 1.729 per cent. In Germany, the trend was the same and the market interest rate on the 10-year loan was -0.078%.

The shorter two-year rate was 0.905 percent in the United States and -0.611 percent in Germany.

In terms of currencies, the euro has continued to strengthen against the US dollar but weakened against the Japanese yen. One euro gets $ 1,148 or 131.06 yen. one dollar gets 114.21 yen.

The rise in producer prices fell short of expectations

In December, the producer price index in the United States rose by 0.2 per cent from the previous month and by 9.7 per cent from the previous year. The economist forecast collected by Bloomberg expected a 0.4 per cent rise on a monthly basis, up 9.8 per cent from the previous year. In November, the corresponding corrected figures were 1.0 per cent and 9.8 per cent.

The basic producer price index excluding energy and food rose by 0.5 per cent from the previous month and by 8.3 per cent from the previous year. The economist’s expectation was an increase of 0.5 per cent on a monthly basis and an increase of 8.0 per cent from the previous year was expected. In November, the corresponding corrected figures were 0.9 per cent and 7.7 per cent.

At the same time, new weekly unemployment benefit claims were reported at 230,000, up from 200,000 new claims and 207,000 new claims. There were 1.559 million ongoing claimants, up from 1.733 million. According to corrected data, there were 1.753 million applicants for unemployment benefits last week.


Source: Arvopaperi by www.arvopaperi.fi.

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