April producer price inflation surged 1.4% month-over-month, nearly triple forecasts, pressuring Fed rate-cut expectations.
Bitcoin fell below $80,000 after U.S. producer price inflation for April jumped 1.4% month-over-month, far exceeding the 0.5% estimate. Annual PPI accelerated to 6%, while core PPI rose 1% on the month and 5.2% year-over-year, both above expectations.
The data follows Tuesday’s consumer price index report, which showed inflation at 3.8% year-over-year, the highest in nearly three years. Markets had priced in potential Fed rate cuts later this year, but the reacceleration in inflation adds uncertainty to the outlook.
Equity futures remained steady, with Nasdaq 100 futures up 0.2% and S&P 500 futures little changed. Bitcoin briefly dipped below $80,000 before stabilizing just above the level, down 0.8% over 24 hours.