• Producer inflation in the US rose at a stronger pace than expected in April.
• The US Dollar Index stays in positive territory at around 98.50.

Producer inflation in the United States, as measured by the change in the Producer Price Index (PPI), rose to 6% on a yearly basis in April from 4.3% in March, the US Bureau of Labor Statistics (BLS) reported on Wednesday. This reading surpassed the market expectation of 4.9% by a wide margin and it was the highest since December 2022.

On a monthly basis, the PPI rose 1.4%, following the 0.7% increase recorded in March and coming in well above analysts' estimate of 0.5%.

Other details of the report showed that the PPI ex Food & Energy was up 5.2% YoY in April, compared to the market forecast of 4.3%.

Market reaction

The US Dollar (USD) Index continues to push higher in the early American session and was last seen rising 0.26% on the day at 98.55.