US February PPI +1.6% y/y vs +1.1% expected

• Prior was +0.9% y/y (revised to +0.8%)
• PPI m/m +0.6% vs +0.3% expected (prior was +0.3%)

Core:

• PPI ex food and energy y/y +2.0% versus +1.9% expected. Prior month +2.0%
• PPI ex food and energy m/m +0.3% versus +0.2% expected. Prior month +0.5%
• PPI ex food and energy/trade +2.8% y/y versus 2.6% prior
• PPI ex food and energy/trade +0.4% m/m versus 0.6% last month

70% of the rise in February goods PPI can be attributed to the index for energy, which jumped 4.4%. With oil above $80 today, I wonder if the market doesn’t stay focused on the energy side for awhile longer, particularly if $85-90 hits.

The US dollar is stronger on this and better initial jobless claims, despite a miss on retail sales.

Update: That move has now faded and we’re back to square.

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