US annual PPI inflation rises to 2.2% in April as expected

• Producer inflation in the US climbed to 2.2% on a yearly basis in April.
• US Dollar Index stays in positive territory above 105.00 after PPI data.

The Producer Price Index (PPI) for final demand in the US rose 2.2% on a yearly basis in April, the data published by the US Bureau of Labor Statistics showed on Tuesday. This reading followed the 1.8% increase recorded in March (revised from 2.1%) and came in line with the market expectation.  

The annual core PPI rose 2.4% in the same period, matching March's increase and analysts' estimate. On a monthly basis, the PPI and the core PPI both rose 0.5% in April.

Market reaction

The US Dollar (USD) gathered strength against its rivals with the immediate reaction. After spiking to a daily high near 105.50, however, the USD Index retreated and was last seen gaining 0.1% on the day at 105.32.