US annual PPI inflation rises to 3.5% in January vs. 3.2% expected

• Producer inflation in the US rose at a stronger pace than expected in January.
• US Dollar Index stays below 108.00 following the PPI data.

The Producer Price Index (PPI) for final demand in the US rose 3.5% on a yearly basis in January, the data published by the US Bureau of Labor Statistics showed on Thursday. This reading followed the 3.3% increase recorded in December and came in above the market expectation of 3.2%.

The annual core PPI rose 3.6% in the same period, surpassing analysts’ estimate of 3.3%. On a monthly basis, the PPI and the core PPI rose 0.4% and 0.3%, respectively.

Market reaction

The US Dollar Index showed no immediate reaction and was last seen losing 0.2% on the day at 107.75.