US: Annual PPI declines to 6% in January vs. 5.4% expected

• US annual PPI in January declined at a softer pace than expected.
• US Dollar Index stays below 104.00 after the data.

The Producer Price Index (PPI) for final demand in the US declined to 6% on a yearly basis in January from 6.5% in December, the data published by the US Bureau of Labor Statistics revealed on Thursday. This reading came in line higher than the market expectation of 5.4%.

The annual Core PPI edged lower to 5.4% in the same period from 5.5%, compared to analysts' estimate of 4.9%. On a monthly basis, the Core PPI came in at 0.5%.

Market reaction

The US Dollar Index staged a modest rebound with the initial reaction to the PPI data and was last seen posting small daily gains at 103.87.