US annual PPI inflation softens to 1.3% in October vs. 1.9% expected

• Producer inflation in the US continued to decelerate in October. 
• US Dollar Index stays in daily range above 104.00 after the PPI data.

The Producer Price Index (PPI) for final demand in the US rose 1.3% on a yearly basis in October, down from the 2.2% increase recorded in September, the data published by the US Bureau of Labor Statistics revealed on Wednesday. This reading came in lower than the market expectation of 1.9%.  

The annual Core PPI increased 2.4% in the same period, below the August reading and analysts’ estimate of 2.7%. On a monthly basis, the Core PPI was unchanged.

Market reaction

The US Dollar Index continues to fluctuate in a relatively tight daily channel slightly above 104.00 following the PPI figures.