A rise in oil prices may cause the consumer price index (CIP) and Producer Price Index (PPI) higher.
Today US CPI climbed to 3.7% from 3.2% as Oil price continues to raise high since June 2023. Rising oil prices increase the cost of transporting goods and services, as a result the inflation raises high.
Producer Price index (PPI)
Sep 14, 2023 (Aug) 0.4 %( expect) 0.3 %( Previous)
We can expect coming PPI to rise higher than expected (0.4%) as there is a stronger correlation between oil prices and producer prices more than the correlation between the oil price and CPI as the (PPI) measures the average selling price from domestic producers and It can be directly linked to inputs.
Today US CPI climbed to 3.7% from 3.2% as Oil price continues to raise high since June 2023. Rising oil prices increase the cost of transporting goods and services, as a result the inflation raises high.
- WTI CRUDE 88.73
- BRENT CRUDE 92.09
- MURBAN CRUDE 94.38
Producer Price index (PPI)
Sep 14, 2023 (Aug) 0.4 %( expect) 0.3 %( Previous)
We can expect coming PPI to rise higher than expected (0.4%) as there is a stronger correlation between oil prices and producer prices more than the correlation between the oil price and CPI as the (PPI) measures the average selling price from domestic producers and It can be directly linked to inputs.