US annual producer inflation climbs to 6% in April vs. 4.9% expected

Producer inflation in the US rose at a stronger pace than expected in April.
The US Dollar Index stays in positive territory at around 98.50.

Eren Sengezer FXStreet

Producer inflation in the United States, as measured by the change in the Producer Price Index (PPI), rose to 6% on a yearly basis in April from 4.3% in March, the US Bureau of Labor Statistics (BLS) reported on Wednesday. This reading surpassed the market expectation of 4.9% by a wide margin and it was the highest since December 2022.

On a monthly basis, the PPI rose 1.4%, following the 0.7% increase recorded in March and coming in well above analysts' estimate of 0.5%.

Other details of the report showed that the PPI ex Food & Energy was up 5.2% YoY in April, compared to the market forecast of 4.3%.

Market reaction

The US Dollar (USD) Index continues to push higher in the early American session and was last seen rising 0.26% on the day at 98.55.

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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