The U.S. PPI increase in January was slightly higher than expected

The US PPI data for January robustly increased, further proving that inflation is rising again and reinforcing the financial market's view that the Federal Reserve will not cut interest rates before the second half of this year. The data shows that last month's PPI rose by 0.4%, while the index for December of last year was revised upwards to an increase of 0.5%. Data released last Wednesday showed that January CPI recorded its largest increase in nearly a year and a half, making hopes for another Fed rate cut in June seem slim. The financial market currently expects a rate cut in September, but some economists believe that due to strong domestic demand and stable labor markets, the window for further easing policies has already closed.