US March PPI hits 4.0% YoY, highest since Feb 2023, but below 4.6% forecast; core holds at 3.8%

US producer inflation accelerated in March, with the PPI rising 4.0% year over year, the strongest reading since February 2023. The print fell short of the 4.6% market consensus. Core PPI was unchanged at 3.8% YoY, also near cycle highs, pointing to firm upstream inflation pressures even as the pace came in softer than investors had expected. Market reaction: ▸ DXY down about 0.35%.