U.S. PPI Data Released! Were Expectations Met?

The highly anticipated Producer Price Index (PPI) data regarding the U.S. economy has been released. The figures for June 2025 came in generally below market expectations. The slowdown in inflation on the producer side is being interpreted as a significant signal for the Fed’s interest rate policy.

U.S. Annual PPI Falls Short of Expectations at 2.3%

The annual PPI for June was announced at 2.3%, below the expected 2.5%. The previous figure stood at 2.7%. This decline indicates easing price pressure at the producer level.

U.S. Monthly PPI Drops to Zero

The monthly PPI came in at 0.0%, significantly below the 0.2% expectation. This figure was 0.3% in May, indicating a noticeable pause in inflation on the producer side.

Surprise Decline in Core PPI

Excluding volatile items like energy and food, the Core PPI also showed weakness:

• Annual Core PPI: 2.6% (Expected: 2.7% / Previous: 3.2%)

• Monthly Core PPI: 0.0% (Expected: 0.2% / Previous: 0.4%)

These declines indicate that core inflation is also slowing. Given that core data often has a more direct impact on Fed decisions, this development is particularly noteworthy.

Impact on Crypto and Financial Markets

In the markets, weaker inflation data may be interpreted as a sign that the Fed could start cutting rates sooner than expected. This could have a positive effect on bitcoin and other altcoins in particular.

In fact, CPI data released in recent weeks also came in below expectations. Now, weak signals from the PPI side suggest that overall inflationary pressure is easing.

Risk assets, in particular, are highly sensitive to rate cut signals. As such, a short-term recovery may be seen in both equity markets and the crypto market.

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