US annual PPI inflation softens to 2.7% in March vs. 3.3% expected

• Producer inflation in the US softened unexpectedly in March.
• US Dollar Index stays deep in negative territory below 100.00.

The Producer Price Index (PPI) for final demand in the US rose 2.7% on a yearly basis in March, the data published by the US Bureau of Labor Statistics showed on Friday. This reading followed the 3.2% increase recorded in February and came in below the market expectation of 3.3%.

The annual core PPI rose 3.3% in the same period, down from 3.5% in February. On a monthly basis, the PPI and the core PPI declined 0.4% and 0.1%, respectively.

Market reaction

The US Dollar Index stays under heavy bearish pressure in the American session on Friday and was last seen losing 1.2% on the day at 99.65.