In annual terms, the PPI in January grew by 4.6% over forecasts of a repeat of December's 4.4% rate.
The core PPI also grew more than expected in January, up 0.3% on the month from 0.0% in December. In annual terms, the core PPI rose to 1.0% in January from 0.9% in December.
The Producer Price Index released by the Bureau of Labor statistics, Department of Labor measures the average changes in prices in primary markets of the US by producers of commodities in all states of processing. Changes in the PPI are widely followed as an indicator of commodity inflation. A high reading is seen as positive (or bullish) for the USD, whereas a low reading is seen as negative (or bearish).