U.S. August PPI rises 0.4% month over month, matching forecasts

The U.S. Labor Department said the producer price index rose 0.4% month over month in August, in line with market expectations of 0.4%. PPI tends to feed into the consumer price index with a lag. Cryptocurrencies, which are classified as risk assets, are sensitive to PPI and CPI releases as inflation indicators that influence Federal Reserve rate decisions. If the two readings come in above forecasts, expectations for Fed rate cuts may weaken, while weaker-than-expected data may be seen as a sign of easing inflation and strengthen expectations for rate cuts. Risk assets generally tend to rise when expectations grow for increased liquidity tied to lower interest rates.