US annual PPI inflation declines to 2.9% in January vs. 2.6% expected

• US PPI rose at a stronger pace than expected in January.
• US Dollar Index stays in daily range below 98.00.

Producer inflation in the United States, as measured by the change in the Producer Price Index (PPI), declined to 2.9% on a yearly basis in January from 3% in December, the US Bureau of Labor Statistics (BLS) reported on Friday. This reading came in above the market expectation of 2.6%. On a monthly basis, the PPI rose 0.5% following the 0.4% increase (revised from 0.5%) recorded in December.

Other details of the report showed that the PPI ex Food & Energy was up 3.6% on a yearly basis in January, compared to the market forecast of 3%.

Market reaction

The US Dollar Index showed no immediate reaction to producer inflation figures and was last seen trading marginally higher on the day at 97.82.