- Wholesale inflation in general rises slightly less than expected in May.
- The dollar falls modestly after the data.
- Focus on the FOMC meeting.
The Producer Price Index (PPI) in the United States rose 0.8% in May, in line with expectations. The annual rate, which was expected to be at 10.9%, was at 10.8%, which represents a decrease from April’s reading of 10.9% (revised from 11%).
The underlying PPI (excluding food and energy) posted a 0.56% advance in May, below the 0.6% market consensus. Compared to 12 months ago, it had a rise of 8.3%, less than the expected 8.6% and the 8.8% of the previous month.
The dollar after the data it fell back and cut profits. The market focus is on the Federal Reserve meeting that starts on Tuesday. On Wednesday, a rise in the rate of 50 basic points is expected, which is not ruled out as 75 points. The move is to deal with high inflation. The known wholesale inflation data may moderate the expectations of a more aggressive rise.
Source: Fx Street
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