US: Annual PPI rises 1.1% in May vs.1.5% expected

The Producer Price Index (PPI) for final demand in the United States grew 1.1% year on year in May, down from 2.3% in April, according to data released on Wednesday by the US Bureau of Labour Statistics. This number was lower than the 1.5% expected by the market. It is at its lowest since December 2020.

In the same time, the annual Core PPI grew 2.8%, compared to the market’s forecast of 2.9%. The PPI fell 0.3% month on month, but the Core PPI gained 0.2%.

Following the PPI news, the US Dollar plummeted across the board, with the DXY dipping below 103.00 and reaching its lowest level since May 22. The US dollar is under pressure following the release of the US Consumer Price Index on Tuesday and ahead of the FOMC announcement, which is expected later on Wednesday.