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.

Haresh Menghani FXStreet

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.

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