Money prices hit their highest level in a month as traders sought refuge amid soaring inflation.

Producer price inflation in the United States jumped to 8.6% in September – its largest year-over-year increase since November 2010.

Traders pay very close attention to PPI data as an indicator of inflation at the wholesale level. It is considered a leading indicator because producers pass higher prices on to their customers.

Elsewhere, the US consumer price index accelerated to 5.4% from a year ago, its highest level in 13 years.

Signs of inflation are becoming more evident by the day, from soaring shipping costs, rising energy prices, food and commodity prices to product and labor shortages. artwork.

The Federal Reserve is also monitoring inflationary pressures closely as it tries to determine whether inflation will be transient or not.

So far this year, Fed officials have dismissed the surge in inflation as “temporary.” However, traders are not convinced and believe that the Fed has lost control over inflation.

Higher inflation, ultimately, erodes the purchasing power of consumers, making assets such as precious metals an attractive haven as we see now.

Where do the prices go next? Watch The Commodity Report now, for my latest price predictions and predictions:

For an overview of all of today’s economic events, check out our economic calendar.

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