US: Annual PPI declines to 8.7% in August vs. 8.8% expected

• Annual PPI in US fell at a stronger pace than expected in August.
• US Dollar Index trades modestly lower on the day at around 109.50.

The Producer Price Index (PPI) for final demand in the US declined to 8.7% on a yearly basis in August from 9.8% in July, the data published by the US Bureau of Labor Statistics revealed on Wednesday. This print came in lower than the market expectation of 8.8%.

The annual Core PPI edged lower to 7.3% from 7.6% but surpassed the market expectation of 7.1%. On a monthly basis, the Core PPI was up 0.4% following July's increase of 0.3%.

Market reaction

These figures don't seem to be having an immediate impact on the dollar's performance against its rivals. As of writing, the US Dollar Index was down 0.15% on the day at 109.60.