US PPI remained unchanged in August – September report

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DG365FD46564GFH654FU898 The producer price index was published today. It showed that the rate of PPI for finished goods didn’t change in August compared to a 0.2% increase (seasonally adjusted) during July. This report also serves as an indicator to the upcoming core CPI to be published tomorrow in the U.S. The food index is one of the factors that inclined during August by 1.1%, while the energy index fell by 1.0%. As a result, the PPI inclined by 6.5% during the past 12 months. The Producer Price index excluding food and energy slightly rose by 0.1% during August. The last index (PPI ex food and energy) is estimated to have a lagged negative linear correlation with gold price; i.e. as the PPI rises, gold price tends to fall the following day. Furthermore, the PPI excluding food and energy has a positive linear correlation with silver price. These relations are mainly directed via the US dollar changes.