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.
• US Dollar Index stays in positive territory above 98.00.

The Producer Price Index (PPI) for final demand in the US rose 3.3% on a yearly basis in July, the data published by the US Bureau of Labor Statistics showed 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.