US: Annual core PPI fell to 2% in September vs. 2.3% expected
|- Core Producer Price Index (PPI) declined 0.3% in September.
- US Dollar Index erased its daily gains on the disappointing data.
According to the data published by the US Bureau of Labor Statistics on Tuesday, the core Producer Price Index, which strips food and energy prices, edged lower to 2% in September from 2.3% and missed the market expectation of 2.3%. On a monthly basis, the core PPI came in at -0.3%.
The PPI, on the other hand, declined 0.3% on a monthly basis in September to drag the annual rate down to 1.4% from 1.8%.
The US Dollar Index lost its traction on the disappointing reading and was last down 0.12% on the day at 98.86.
Assessing the data, "US producer prices unexpectedly fell in September, weighed down by decreases in the costs of goods and services, which could give the Federal Reserve room to cut interest rates again this month to limit the drag on the economy from trade tensions and slowing growth overseas," said Reuters.
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