US: Annual PPI in May drops to 1.8% vs 2% expected

The U.S. Bureau of Labor Statistics on Tuesday reported that the Producer Price Index (PPI) on a yearly basis dropped to 1.8% in May from 2.2% in April and fell short of the market expectation of 2%. The core PPI, which strips volatile food and energy prices, came in at 2.3% as expected.

On a monthly basis, the PPI and the core PPI matched analysts estimates with 0.1% and 0.2%, respectively. With the initial reaction to upbeat core data, the US Dollar Index extended its daily recovery and was last seen at 96.87, adding 0.12% on the day.