The US Bureau of Labor Statistics reported that annual producer inflation rose to 6.5% in October, missing the 6.6% market expectation. Following the release, the US Dollar Index edged down 0.05% to 103.10 as investors weighed the slightly softer headline figure against core inflation data that met analyst estimates.
Bearish
🤖 80%
Annual PPI rose to 6.5% in October from 6.3% in September, slightly below the 6.6% consensus, with core PPI exactly in line at 5% yearly and 0.3% monthly. The small downside surprise to headline inflation weighed marginally on the dollar, with the index down 0.05% at 103.10. Softer-than-expected inflation modestly reduces the case for higher US rates, though the miss was tiny and core matched estimates.
Catalysts
- ▼ October PPI of 6.5% vs 6.6% expected, released Friday
- ▼ US Dollar Index down 0.05% to 103.10 after the release
Risk Factors
- ▲ Core PPI matched estimates at 0.3% monthly and 5% yearly, limiting the bearish signal
- ▲ September monthly PPI was revised up to 1.4% from 1.3%, showing still-hot producer prices