US: Annual PPI falls to 6.2% in December from 7.3% previous
- Annual PPI in the US declined to 6.2% in December, as expected.
- US Dollar Index languishes near a multi-month low after the data.
data published by the US Bureau of Labor Statistics revealed that the Producer Price Index (PPI) for final demand in the US declined to 6.2% on a yearly basis in December from the previous month’s downwardly revised reading of 7.3%. This reading missed consensus estimates for a fall to 6.8%.
Furthermore, the annual Core PPI decelerated to 5.5% during the reported month from the previous month’s reading of 6.2%, again missing market expectations. On a monthly basis, the Core PPI came in at 0.1%, down from 0.2% in November (revised lower from 0.4% reported previously).
Market reaction
The US Dollar fail to gain any respite from the softer inflation data and languishes near a seven-month low amid firming expectations for a less aggressive policy tightening by the Fed.
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
