U.S. Wholesale Prices Fall Short of Expectations Last Month, Halting Bond Yield Surge
Summary
- The U.S. Producer Price Index (PPI) fell short of expectations, slightly easing market inflation concerns.
- The core PPI met expectations, contributing to controlling market volatility.
- The 10-year U.S. Treasury yield showed a downward trend, suggesting a potential rebound in stock prices.
The U.S. Department of Labor announced on the 14th that the U.S. Producer Price Index (PPI) for December last year increased by 3.3% compared to the same month the previous year.
The PPI, which aggregates the prices manufacturers pay for raw materials and services such as transportation, is considered a leading indicator of consumer inflation.
The PPI growth rate, which was 1.7% in August last year, rose consecutively to 1.8% in September, 2.4% in October, and 3.0% in November.
However, as the December PPI growth rate fell short of the expected 3.4%, the market breathed a sigh of relief.
Recently, the market has been viewing strong U.S. economic growth and inflation concerns due to President Donald Trump's tariff policies as negative factors for the stock market. The trend of stock prices falling when U.S. Treasury yields surge, due to expectations that the Federal Reserve will halt interest rate cuts and concerns over the policies of Trump's second administration, has been repeated in recent days.
The core PPI, excluding the volatile energy and food sectors, rose by 3.5%, meeting expectations.
On this day, the 10-year U.S. Treasury yield started trading at 4.784% per annum, down 0.021 percentage points from the previous trading day (indicating a rise in Treasury prices).
Reporter Kim In-yeop inside@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
