The latest data from the Bureau of Labor Statistics (BLS) shows that Producer Prices climbed 3.3% in December compared to a year earlier. This was below expectations of 3.4% and a decent uptick from November’s 3.0% increase.
Excluding the often volatile food and energy categories, Producer Prices rose 3.5% over the last twelve months, again coming in short of the forecast of 3.8% and outpacing the 3.4% growth seen in the previous report.
On a monthly basis, the headline Producer Price Index (PPI) increased by 0.2%, while the core PPI (excluding food and energy) came in flat. Both figures disappointed market predictions.
Market reaction
The US Dollar treads water around 109.50 when tracked by the US Dollar Index (DXY) following Monday’s knee-jerk and despite hitting a new cycle peak past the 110.00 barrier.
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