U.S. producer prices rose 0.1% in May, marking a modest rebound after two months of declines. Year-over-year, the Producer Price Index (PPI) rose 2.6%. Core PPI (excluding food, energy, and trade services) also edged up, but did not exceed the initial forecasts. The increase was driven by service prices, particularly wholesale margins, while goods prices saw modest gains. The data signals steady but subdued inflation, reinforcing expectations of a continued Fed pause and giving markets breathing room.
The EURUSD continued its rally, breaking over 1,16 after the release of the data.
