U.S PPI Sharply Inclined in September – October Report

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DG365FD46564GFH654FU898 The producer price index was published today. It showed a sharp increase in the PPI for finished goods in September compared to August – an increase of 0.8%. This report also serves as an indicator for the upcoming U.S core consumer price index to be published tomorrow. The energy index is one of the prime factors that inclined during September by 2.3%, while the food index rose by only 0.6%. As a result, the PPI inclined by 6.9% during the past 12 months. The Producer Price index excluding food and energy slightly rose by 0.2% during September. This 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 U.S dollar changes.