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US producer prices fell unexpectedly in December, recording a first drop in 16 months, as falling crude oil prices continue to dampen inflationary pressures on the economy.
According to the Department of Labor, last month the main producer price index, which is one of the main indicators of industrial inflation, decreased by 0.2 percent compared to the previous month. It has fallen from the 0.1% increase recorded in November and was faster than the 0.1% drop forecast by analysts.
It was stable at 2.5% year-on-year.
Out of food and energy, two volatile items, a measuring instrument, had fallen by 0.1 cents a month, the biggest drop over the year, and hoping for an increase of 0.2 percent.
Figures appear last week when US consumer prices fell for the first time in nine months in December.
Both readings, as well as concerns about the slowdown in global economic growth and recent market fluctuations, should increase the argument that the Federal Reserve should gradually focus on raising interest rates this year.
Although the Fed downgraded its outlook for future rates in December this year to two, the three traders are certainly stranger.
Fund Fund Futures – Derivative contracts used by investors to raise interest rates are 71% probability that the central bank will not repeat interest rates in 2019.
Treasury profitability declined after the release of PPI data. Compared to 10 years, bond yields fell from 2.7059 percent to low level of 2,6809 percent. It is currently 1.3 base points lower than 2.66969 percent.
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