The US Producer Price Index (PPI) rose 0.3% m/m in its November reading, beating 0.1% forecast. The October figure was revised up from 0.2% to 0.3%.
At an annual level, the indicator grew by 7.4%, as expected, down from 8.1% (revised from 8%) in the previous month. This is the lowest growth seen since May 2021.
Excluding power and energy, producer prices rose 0.4% monthly, above the previous 0.1% and the estimated 0.3%. YoY, the indicator rose 6.2%, exceeding the 6% consensus and below the 6.7% of October.
EUR/USD Reaction
The dollar has strengthened on the data, causing a drop in EUR/USD of almost 65 pips in a few minutes. The pair has dipped to fresh daily lows at 1.0503, though at time of writing it is regaining some ground and is trading above 1.0534, down 0.20% daily. The higher than estimated reading in the annual PPI excluding food and energy has sparked fears in the market ahead of the next Fed meeting.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
