US: Annual PPI surges to 8.3% in August vs. 8.2% expected

Annual PPI rose to its highest level in more than 10 years.
US Dollar Index stays in the negative territory below 92.50.

Eren Sengezer FXStreet

The Producer Price Index (PPI) in the US for final demand rose to 8.3% on a yearly basis in August from 7.8% in July, the US Bureau of Labor Statistics announced on Friday. This reading came in higher than the market expectation of 8.2%.

Regarding the annual reading, the publication revealed that it was the largest advance since the 12-month data were first calculated in November 2010.

On a monthly basis, the PPI arrived at 0.7% after rising 1% in July.

Further details of the report showed that the annual Core PPI climbed to 6.7% from 62.%, surpassing analysts' estimate of 6.6%.

Market reaction

This report doesn't seem to be having a significant impact on the USD's performance against its major rivals. As of writing, the US Dollar Index was down 0.12% on the day at 92.40.

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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