US annual PPI inflation rises to 1.6% in February vs. 1.1% expected

• Producer inflation in the US climbed to 1.6% on a yearly basis in February. 
• US Dollar Index stays in positive territory near 103.00 after the data.

The Producer Price Index (PPI) for final demand in the US rose 1.6% on a yearly basis in February, the data published by the US Bureau of Labor Statistics showed on Thursday. This reading followed the 1% increase recorded in January (revised from 0.9%) and came in above the market expectation of 1.1%.  

The annual Core PPI rose 2% in the same period, matching January's increase. On a monthly basis, the Core PPI was up 0.3%, compared to analysts' estimate of 0.2%.

Market reaction

The US Dollar Index edged slightly higher with the immediate reaction and was last seen rising 0.13% on the day at 102.92.