US annual PPI jumps to 3.3% in July vs. 2.5% expected
- Producer inflation in the US rose at a much stronger pace than expected in July.
- The US Dollar Index stays in positive territory above 98.00.
The Producer Price Index (PPI) for final demand in the United States (US) rose 3.3% on a yearly basis in July, according to the report published by the US Bureau of Labor Statistics on Thursday. This reading followed the 2.4% increase recorded in June and surpassed the market expectation of 2.5% by a wide margin.
The annual core PPI rose 3.7% in the same period, up from 2.6% in June. On a monthly basis, the PPI and the core PPI both increased by 0.9%.
Market reaction
The US Dollar Index gained traction with the immediate reaction to US producer inflation data and was last seen rising 0.25% on the day at 98.04.
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.
