US: Annual PPI declines to 2.7% in March vs. 3% expected
- Annual producer inflation in the US declined sharply in March.
- US Dollar Index continues to push lower toward 101.00.
The Producer Price Index (PPI) for final demand in the US declined to 2.7% on a yearly basis in March from 4.9% in February (revised from 4.6%), the data published by the US Bureau of Labor Statistics revealed on Thursday. This reading came in lower than the market expectation of 3%.
The annual Core PPI dropped to 3.4% in the same period from 4.5%, matching analysts' estimate. On a monthly basis, the PPI and the Core PPI came in at -0.5% and -0.1%, respectively.
Market reaction
The US Dollar came under renewed selling pressure after this report and the US Dollar Index was last seen losing 0.35% on the day at 101.17.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
