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📊 Golden Finance | What is PPI? What should you do?

1️⃣ PPI = Producer Price Index, measuring changes in costs on the production side for factories and businesses2️⃣ Simply put: CPI is “are the things you buy more expensive?”, while PPI is “are the things manufacturers make more expensive?”3️⃣ PPI rises → costs are passed through → CPI follows higher → pressure on the Fed to raise rates increases4️⃣ U.S. September PPI will be released at 20:30 tonight, with the market expecting a month-on-month increase of +0.6%. If it exceeds expectations, the probability of a rate hike will continue to surge, putting pressure on the crypto market
⚠️ PPI is the “early warning station” for CPI. Understanding PPI lets you know in advance where inflation is headed next month.
🎯 Why PPI Matters
Last night, September CPI far exceeded expectations (3.7% year-on-year, core 2.6%), and the probability of a Fed rate hike in October has already surged from 22% to 50%.

——————-What to do——————————-
🔔If PPI also exceeds expectations tonight,
1️⃣ Higher prices on the cost side (producers) → these will later be passed through to consumers
2️⃣ Inflation shifts from a “one-time shock” to “sustained pressure”
3️⃣ A Fed rate hike in October becomes virtually certain, with another hike possible in December
4️⃣ The crypto market remains under pressure, while the dollar and Treasury yields strengthen and gold pulls back
🔔If PPI comes in below expectations:
1️⃣ This suggests yesterday’s CPI upside surprise may have been “one-time”2️⃣ Rate hike expectations cool, giving risk assets (BTC/ETH) a chance to rebound.