Dow Jones Climbs as PPI Inflation Surprises to the Downside

The Dow Jones (DJIA) is set to open Wednesday in the green following an inflation update from the Bureau of Labor Statistics (BLS).

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The U.S. Producer Price Index (PPI) rose 0.5% month-over-month in March, well below the estimate of 1.1%. On an annual basis, it increased by 4%, also below the estimate of 4.6% but rising to its highest level since February 2023. The index tracks the prices that producers charge for their goods and services and is often used as an early indicator of inflation.

Inflation Still Elevated ahead of April 29 FOMC

Core PPI, which excludes volatile food and energy prices, notched a monthly gain of 0.1% and an annual gain of 3.8%. Analysts were expecting 0.4% and 4.1%, respectively.

The data will come as a relief to some given surging oil and gas prices caused by the closure of the Strait of Hormuz. At the same time, inflation remains elevated ahead of the upcoming Federal Open Market Committee (FOMC) meeting on April 29, where the central bank is widely expected to hold rates steady.