US producer prices are dropping to a five-year low

The US Department of Labor said that the US PPI fell by 0.6% in February, the largest drop since January 2015, after rising by 0.5% in January. Analysts had expected PPI to decline by 0.1% in February.

The PPI rose during the twelve months to February by 1.3% after rising by 2.1% in January, and analysts had expected the PPI to rise by 1.8% year on year during February.

The core PPI, which excludes food, energy and trade, fell 0.1% in November, the first drop since June after rising 0.4% in January, and on an annual basis the core PPI fell 1.4% versus 1.5% in January.