The US Labor Department published September's producer prices this Thursday, and they come in markedly hotter than Wednesday's consumer price index: prices for final demand rose 1.3 percent against August and 6.3 percent over twelve months. That has two consequences for your portfolio. The market is once again pricing in a rate rise on October 28, and it has already taken two different views of that today. Bitcoin fell to just under $80,000 in the turbulence and is back at $82,266.
The producer price index measures what producers receive for their goods and services before retailers and consumers pay for them. It therefore sits at the start of price formation, not at the end. That is exactly what makes the 6.3 percent uncomfortable: consumer prices stood at 3.7 percent in September, as cryptoticker.io reported on October 14. A gap lies between the two readings, and gaps of this kind have historically closed upwards rather than downwards.
September producer prices: 1.3 percent on the month, 6.3 percent on the year
The figures are in the producer price index release from the Bureau of Labor Statistics, publ...
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