US producer inflation exceeds expectations

Economists had forecast increases of 0.6% and 5.4%, respectively. Core PPI, which excludes food and energy prices, climbed 0.7% on a monthly basis and 5% annually, surpassing expectations of 0.3% and 4.4%. The figures indicated intensifying producer price pressures across the US economy.

Meanwhile, US retail sales increased 0.8% month-on-month, beating the 0.3% forecast, while core retail sales rose 0.9%. Initial jobless claims came in at 199,000, below expectations of 200,000, while continuing claims stood at 1.71 million. Stronger-than-expected inflation and consumer spending data could reinforce expectations that the Federal Reserve (Fed) will maintain a restrictive monetary policy stance.