US: Annual PPI falls to 10.8% in May vs. 10.9% expected
The annual pace of producer price inflation in the US according to the Producer Price Index (PPI) fell slightly to 10.8% from 10.9% a month earlier, a tad below expectations for it to remain unchanged at 10.9%. MoM, PPI showed prices rising 0.8% in May, in line with expected, but up from 0.4% a month earlier (revised lower from 0.5%).
The Core PPI showed the annual inflation rate at 8.3%, below the expected 8.6%, while the MoM gain in Core PPI was 0.5%, below the expected 0.6%, but still up from last month's 0.2%.
Market Reaction
The US dollar has been pulling back a tad in wake of slightly weaker than expected PPI data, recently dipping back below 105.00, but still remains at fairly elevated levels.
Author
Joel Frank
Independent Analyst
Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset
