Diesel prices plunge 8%, yet Bitcoin traders face a squeeze
October’s PPI slowed at the headline level, but higher freight prices and firm underlying inflation leave financing relief uncertain. Read the full story on CryptoSlateUnderstand the crypto stories that matter and what to watch next. Get The Catalyst in your inbox
US wholesale inflation slowed in October, but rising freight prices and firm underlying pressure complicate the case that cheaper fuel will make financing easier for Bitcoin (BTC) holders while BTC remains below $70,000.
The Bureau of Labor Statistics’ October producer-price report, released Nov. 13, showed diesel prices falling 7.9% as truck freight prices rose 3.9%. Headline wholesale inflation slowed sharply, but the measure excluding food, energy, and trade services kept rising at September’s monthly pace.
Final-demand PPI rose 0.3% in October, seasonally adjusted, after September’s revised 1.4% increase.
The measure excluding food, energy and trade services rose 0.5% for a second month. Its annual increase eased to 4.9% from 5%, while headline annual PPI accelerated to 6.5% from 6.3%. Those readings support a mixed assessment of some comparisons improved, but underlying monthly pressure held firm.
BLS attributed more than 80% of October’s 0.2% rise in final-demand services prices to truck freight. Transportation and warehousing services rose 2%, even as final-demand energy prices slipped 0.1%. Goods prices increased 0.5%.
Cheaper diesel coexisted with higher prices for moving goods. For now, the freight increase undercuts an assumption that a lower fuel bill immediately means cheaper transport.
Unprocessed intermediate goods prices fell 3.1%. Alongside slower monthly headline inflation and the easing annual exclusion measure, that gives the more optimistic interpretation real evidence. The question is whether that cooling broadens and lasts.
PPI measures the selling prices domestic producers receive, CPI measures prices paid by consumers, while the Fed targets inflation measured by personal consumption expenditures (PCE).