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US PPI cools more than expected, easing inflation pressure

The Producer Price Index was unchanged on the month in July, while the core PPI rose 0.2% on the month, and the US Dollar Index slipped to around 99.93 after the release.

Reported · Written up by our desk · Major Pairs

US producer inflation in the United States cooled more than expected in July, reinforcing signs that inflationary pressure is easing after the prior day’s Consumer Price Index release, according to FXStreet.

The US Producer Price Index was unchanged on a monthly basis in July, following a revised 0.1% decline in June. On an annual basis, PPI rose 4.7%, down from 5.5% in June and below the 4.9% increase expected.

Underlying inflation also moderated, with the core PPI increasing 0.2% month over month in July, after a revised 0.4% increase in June and below the 0.3% consensus. On a yearly basis, core PPI slowed to 4.2% from 4.7%, matching expectations.

FXStreet said the softer inflation data could support expectations for near-term monetary policy that is more favorable, while the US Dollar Index, or DXY, fell 0.04% and traded around 99.93 at the time of writing.

Latest closeDollar index 99.99 ▲0.2%

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