U.S. PPI fell 0.5% in February, seasonally adjusted, missing expectations on 0.2% growth. Final demand prices moved down 0.8% in January and 0.2% in December. On an unadjusted basis, the index for final demand decreased 0.6% for the 12 months ended in February.
Core PPI was also down by 0.5%, while analysts were predicting 0.1% increase. In February, about 70 of the decline in final demand prices can be attributed to a 0.5% decrease in the index for final demand services. Prices for final demand goods moved down 0.4%. Within intermediate demand, the index for processed goods fell 0.6%, the index for unprocessed goods dropped 3.9%, and prices for services edged up 0.1%.
After the data USD edged down slightly. Euro is currently being traded few points below 1.06 handle, Sterling is around 1.4810 area, while Aussie is above 0.7660 level. Later today, Consumer Sentiment figures are scheduled for a release.
