The US producer price index

Month-over-month data:

  • Prior was +0.4%
  • Ex food and energy +0.3% vs +0.1% expected
  • Ex food, energy and trade +0.2% vs +0.1% exp

Year-over-year data:

  • PPI -0.8% vs -0.9% expected
  • Ex food and energy +0.6% vs +0.5% exp

The US dollar is catching a bid on this report, which looks like an overreaction to me. Any inflation that was in the pipeline is going to be flushed out by the latest drops in commodities prices.

That said, maybe it's a sign that the US dollar wants to rally.