US May PPI +2.6% y/y vs +2.6% expected

• Prior was +2.4% (revised to +2.5%)
• PPI +0.1% m/m vs +0.2% expected
• Prior m/m -0.5% (revised to -0.2%)
• Ex food and energy +3.0% y/y vs +3.1% expected
• Ex food and energy +0.1% m/m vs +0.3% expected
• Ex food, energy and trade +2.7% vs +2.9% prior
• Ex food, energy and trade +0.1% vs -0.1% prior

There revisions to the prior mask some of the coolness in inflation but overall, these numbers are only slightly lower than expected. The US dollar is softer in the aftermath of initial jobless claims, which were released at the same time.

As for the Fed, there is pressure on them to cut rates but these numbers are still running above the 2% inflation target and are higher than the GFP-to-Covid average.

This article was written by Adam Button at www.forexlive.com.