Shafaqna English– Traders bet on Thursday that the Federal Reserve is slightly more likely to raise short-term borrowing costs at next week’s meeting, following the first major inflation report of the week. U.S. producer prices rose 5.4% year-on-year through August, while weekly unemployment claims suggested a stable job market.
Although the overall wholesale price increase matched economists’ expectations, details in the Producer Price Index indicated that some of the recent disinflation is being reversed, driven by Middle East hostilities disrupting global oil distribution and surging AI investment boosting electronics demand. Notably, producer prices for transportation, warehousing, hospital services, and airfares all jumped in August.
Source: Reuters