US producer prices drop for the first time in five months

US producer prices drop for the first time in five months

U.S. producer prices unexpectedly dropped in March, a report from the Labor Department released on Thursday showed.  

The producer price index (PPI) showed 0.1 percent decrease last month, marking the first monthly fall in five months consecutive monthly gain, after a 0.3 percent rise in February. Analysts had called for no change.  

Core PPI also was unchanged, compared to both prior and expected reading of 0.3 percent and 0.2 percent respectively.

As of 12:53 GMT, the dollar rose for the first time in five four sessions versus a basket of major currencies, as it traded at 100.31, according to the dollar index.

Another report from the U.S. signaled a retreat in initial jobless claims by 1,000 to 234,000, compared to forecasts of a rise to 242,000.

Ahmed Mamdouh

Ahmed Mamdouh, Co-Founder and Head of English Fundamental Analysis at FXComment.com, with 7 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from The American University in Cairo and a Bachelor Degree in Economics from The Faculty of Economics and Political Science, Cairo University.

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