US inflation shows signs of slowing down

Today, November 15, in the United States were published data Producer Price Index (PPI), which is a key indicator of general consumer inflation. At the end of October, PPI rose by 8% compared to the same month last year, which turned out to be lower than the September dynamics (+8.5%) and below the forecasts of analysts polled by Bloomberg (+8.3%). Producer price index excluding energy and food products (Core PPI) in October rose by 6.7%, which was also below analysts’ forecasts, which had expected growth of 7.2%.

Investors reacted very positively to the release of data suggesting a slowdown in inflation in the US. The Dow Jones index in the first hours of stock trading added more than 200 points (+0.9%), the S & P 500 rose by 1.5%, NASDAQ – by 2.4%. Analysts believe that favorable inflation data should influence the Fed’s policy. “I think that this data will have an impact on the Fed,” he said on the air of the TV channel. CNBC Jeremy Siegel, professor emeritus of finance at the Wharton School of Business. “Now they have to see how prices behave: that prices don’t keep going up.”

Evgeniy Khvostik