Producer inflation in the United States moderated in July, with the Producer Price Index (PPI) for final demand rising by 2.2% year-over-year, according to the latest data released by the US Bureau of Labor Statistics. This figure was lower than the 2.3% anticipated by market analysts and marked a deceleration from the 2.7% increase recorded in June.
The core PPI, which excludes the more volatile food and energy prices, also grew at a slower pace, registering a 2.4% increase compared to expectations of 2.7%. On a monthly basis, the overall PPI edged up by just 0.1%, while the core PPI remained flat.
Despite the softer-than-expected inflation figures, the US Dollar Index showed little movement and continued to hover slightly above the 103.00 level. The market appears to be weighing the implications of this data on the Federal Reserve’s future monetary policy decisions.
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