US: Annual PPI declines to 7.4% in November as expected

• Annual PPI in the US declined to 7.4% in November as expected.
• US Dollar Index gained traction and climbed to the 105.00 area.

The Producer Price Index (PPI) for final demand in the US declined to 7.4% on a yearly basis in November from 8.1% in October, the data published by the US Bureau of Labor Statistics revealed on Friday. This reading came in line with the market expectation.

The annual Core PPI edged lower to 6.2% in the same period from 6.7%, compared to analysts’ estimate of 6%. On a monthly basis, the Core PPI came in at 0.4%.

Market reaction

The US Dollar gathered strength against its rivals with the initial reaction to the data. As of writing, the US Dollar Index was up 0.2% on the day at 105.02.