US April Producer Price Index (PPI) Falls 0.5% MoM, Below Expectations

Minseung Kang

Summary

The US April Producer Price Index (PPI) fell 0.5% month-over-month, below the market expectation of a 0.2% increase.
The Producer Price Index is considered a leading indicator of consumer prices, and this decline raises the possibility of a slowdown in consumer prices.
Bitcoin rose slightly following the announcement of the PPI decline, but it is still in a correction phase.

The United States' April Producer Price Index (PPI) fell below market expectations. Producer prices are considered a leading indicator of consumer prices as they are reflected in final consumer goods prices after a certain period.

According to the US Department of Labor on the 15th (local time), the US April PPI fell 0.5% from the previous month. This figure is below the market expectation of a 0.2% increase and marks the largest drop since April 2020. On a year-over-year basis, it rose 2.4%, also below the market expectation of 2.5%.

Bitcoin (BTC) rose slightly following the announcement that wholesale prices, a leading indicator of consumer prices, are cooling. As of 21:32 on the same day, BTC was trading at $102,654 on the Binance USDT market, down 1.31% from the previous day.

The number of new unemployment claims in the US for the past week, announced at the same time, was 229,000, in line with market expectations.