US: Annual core PPI fell to 0.3% in May vs. 0.4% expected

• Annual core PPI in US fell more than expected in May.
• US Dollar Index stays in the positive territory below 96.50 after the data.

The Producer Price Index (PPI) for final demand arrived at +0.4% in May on a monthly basis following April's reading of -1.3%, the data published by the US Bureau of Labor Statistics showed on Thursday. This print came in higher than the market expectation of 0.1%.

The core PPI, which excludes volatile food and energy prices, dropped to 0.3% annually from 0.6% and missed analysts' estimate of 0.4%. On a monthly basis, the core PPI rose to -0.1% from -0.3% in May as expected.

Market reaction

The market reaction to these figures was relatively muted. At the moment, the US Dollar Index is up 0.36% on the day at 96.40.