U.S. June PPI Hits 2.3%, Lowest Since 2024
- The U.S. Bureau of Labor Statistics reports a 2.3% PPI increase.
- June index is the lowest since September 2024.
- Possibly impacts Federal Reserve’s monetary policy decisions.
The latest PPI figures highlight a slowdown in wholesale inflation, potentially influencing U.S. monetary policy. This reduction in producer price growth could affect risk assets, including cryptocurrencies.
The U.S. Bureau of Labor Statistics announced a 2.3% year-on-year rise in the Producer Price Index for June, a new low since September 2024. The official release indicates a slowdown in inflation across wholesale sectors.
“The index for final demand rose 2.3% for the 12 months ended in June.” – U.S. Bureau of Labor Statistics
Economist Bradley Saunders from Capital Economics noted signs of tariff impacts while emphasizing a decrease in wholesale price acceleration. Unaffected sectors showed variations such as steel mills, which saw a 5.5% price decline.
Lower-than-expected inflation data generally benefits major cryptocurrencies like BTC and ETH by reducing the likelihood of rapid monetary tightening. The June PPI’s impact on crypto, however, remains speculative at this time.
Reduction in inflationary pressure supports risk assets and suggests possible dovish moves by the Federal Reserve. This could positively impact market sentiment, but further analysis is required for comprehensive insights.
Historically, lower inflation promotes market risk appetite, favoring cryptocurrencies and DeFi tokens. Future trends in BTC and ETH may align with historic reactions to macroeconomic data, providing opportunities for market participants.
