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Forexpros – Producer price inflation in the U.S. rose more-than-expected in July, while core prices also increased, official data showed on Tuesday.
In a report, the Bureau of Labor Statistics said that producer prices rose by a seasonally adjusted 0.3% in July, compared to expectations for a 0.2% increase, after rising 0.1% in June.
Year-over-year, the producer price index rose at an annualized rate of 0.5% last month, in line with expectations. PPI rose by 0.7% in June.
The core producer price index rose 0.4% in July, above expectations for a 0.2% gain, after rising 0.2% in June.
Core produces prices rose at an annualized rate of 2.5% last month, down from 2.6% in June. Analysts had expected core prices to increase at a rate of 2.5% in July.
Core prices are viewed by the Federal Reserve as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories.
Following the release of the data, the U.S. dollar held on to losses against the euro, with EUR/USD adding 0.17% to trade at 1.2354.
Meanwhile, U.S. stock future indices added to gains. The Dow Jones Industrial Average futures pointed to a gain of 0.35% at the open, S&P 500 futures pointed to a rise of 0.4%, while the Nasdaq 100 futures pointed to a gain of 0.45%.
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