U.S. Producer Prices Rise in May, Dollar Weakens Amid Trade Uncertainty

The latest data from the Bureau of Labor Statistics (BLS) revealed that Producer Prices increased by 2.6% in May compared to the same month last year, in line with forecasts but slightly higher than April’s 2.4% growth.

When excluding the volatile food and energy sectors, core prices rose by 3.0% year-over-year. However, this was slightly below the expected 3.1% increase and underperformed the previous report’s 3.1% rise.

On a monthly basis, both the headline and core Producer Price Index (PPI) increased by 0.1%, which fell short of market expectations for a larger increase.

In response to the data, the U.S. Dollar (Greenback) continued to face significant pressure on Thursday, sinking below the 98.00 support level on the U.S. Dollar Index (DXY) for the first time since March 2022. Investors are increasingly selling the dollar amid rising concerns over trade uncertainty, as geopolitical tensions and tariff disputes continue to affect market sentiment.