Key Economic Indicators Released
On March 18, 2026, the US Producer Price Index (PPI) data was released, showing a significant increase that exceeded market expectations. The year-over-year PPI came in at 3.4%, surpassing the forecast of 3.0% and the previous figure of 2.9%. Additionally, the month-over-month PPI rose by 0.7%, compared to the anticipated 0.3% and the prior 0.5%.
Core PPI Figures
The Core PPI, which excludes food and energy prices, also showed inflationary pressures. The year-over-year Core PPI was reported at 3.9%, above the forecast of 3.7% and the previous 3.6%. The month-over-month Core PPI increased by 0.5%, again exceeding expectations of 0.3% but lower than the previous 0.8%.
Market Reaction
The inflationary PPI data is viewed negatively by investors, particularly in the context of a weakening labor market and rising oil prices, which have surged above $100 per barrel. Following the release of the PPI data, futures for the Nasdaq 100 (US100) index experienced a decline, reflecting investor concerns over potential economic implications.
Additional Market Movements
In conjunction with the PPI data, gold prices fell by 2%, indicating a broader risk-off sentiment in the market. The EUR/USD currency pair also showed slight losses ahead of the Federal Reserve's upcoming decision, suggesting that traders are cautious as they await further guidance from the central bank.