inflation<\/a> to date in consumer prices, the levies the president has imposed on US trading partners are driving an increase in prices further up the supply chain.<\/p>\nThe rise \u201cshows inflation is coursing through the economy, even if it hasn\u2019t been felt by consumers yet\u201d, said Chris Zaccarelli, chief investment officer at Northlight Asset Management.<\/p>\n
Separate data earlier in the week showed that annual consumer price inflation held steady at 2.7 per cent in July, defying expectations of a rise to 2.8 per cent.<\/p>\n
Analysts noted that much of the gains in Thursday\u2019s figures were driven by a surprise increase in margins for wholesalers and retailers.<\/p>\n
The core index, which strips out the effects of volatile food, energy and trade prices, rose 2.8 per cent ahead of expectations of a 2.5 per cent gain. <\/p>\n
The dollar and short-term Treasury yields edged higher, as traders marginally reined in their expectations for Federal Reserve interest rate cuts.<\/p>\n
The probability of a quarter-point cut at next month\u2019s Fed meeting \u2014 which was fully priced in by swaps markets before the PPI figures \u2014 fell slightly to about 95 per cent. <\/p>\n
The dollar was down 0.2 per cent against a basket of rival currencies, while S&P futures fell 0.4 per cent ahead of the Wall Street open.<\/p>\n
\u201cThe market response is right \u2014 this isn\u2019t great data \u2014 but it is so trivial compared to jobs, to rents, to CPI. It is a minor data point. Still, if I were the person who produced the report, I would probably be dusting off my resume,\u201d said Peter Tchir, head of macro strategy at Academy Securities.<\/p>\n","protected":false},"excerpt":{"rendered":"Stay informed with free updates Simply sign up to the US economy myFT Digest — delivered directly to…\n","protected":false},"author":2,"featured_media":66490,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,56,54,55],"class_list":["post-66489","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/66489","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=66489"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/66489\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/66490"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=66489"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=66489"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=66489"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}