“CPI might have seemed hot, but PPI was not. Overall, these numbers are getting less impactful as inflation moderates.”
US stocks edged higher on Friday after Producer Price Index data for September came in lower than expected, signaling a continued cooling of wholesale inflation.
The producer price index was flat month-over-month, below economist estimates of a 0.1% rise. Meanwhile, Core PPI rose 0.1% in September, compared to an expected rise of 0.2%.
TradeStation strategist David Russell told Business Insider the data supports another interest rate cut from the Federal Reserve.
“CPI might have seemed hot, but PPI was not. Overall, these numbers are getting less impactful as inflation moderates. The Fed could still be on track for 25 basis points at the next two meetings.
