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.

Eren Sengezer FXStreet

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.

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