United States annual producer inflation drops to 5.5% in June vs. 6.2% expected

Producer inflation in the United States, as measured by the change in the Producer Price Index (PPI), declined to 5.5% on a yearly basis in June from 6% in May, the US Bureau of Labor Statistics (BLS) reported on Wednesday. This reading came in below the market expectation of 6.2%.

On a monthly basis, the PPI declined by 0.3%, following the 0.6% increase recorded in May and fell short of analysts' estimate for a no change.

Other details of the report showed that the PPI ex Food & Energy was up 0.2% and 4.7% on a monthly and yearly basis, respectively.

Market reaction

The US Dollar (USD) comes under modest bearish pressure following this report and the USD Index retreats from session highs. At the time of press, the USD Index was trading marginally lower on the day near 100.90.