US: Annual PPI declines to 8% in October vs. 8.3% expected

• Producer inflation in the US rose at a softer pace than expected in October.
• US Dollar Index stays deep in negative territory below 106.00.

The Producer Price Index (PPI) for final demand in the US declined to 8% on a yearly basis in October from 8.4% in September, the data published by the US Bureau of Labor Statistics revealed on Tuesday. This print came in lower than the market expectation of 8.3%.

The annual Core PPI edged lower to 6.7% from 7.2% in the same period, compared to analysts' estimate of 7.2%. On a monthly basis, the Core PPI was unchanged.

Market reaction

The US Dollar remains under heavy selling pressure after the PPI data and it was last seen losing 1% on the day at 105.85.