The US dollar is taking a breather from its meteoric ascent on Tuesday. The greenback slipped as the financial markets enjoyed modest gains amid decent wholesale pricing data. But this might be positive news on the inflation front, although it is unlikely to persuade the Federal Reserve to ease monetary policy.

According to the Bureau of Labor Statistics (BLS), the producer price index (PPI) dipped 0.1% in August, matching market estimates. This represented the second consecutive month of falling wholesale prices as the July PPI dropped 0.4%.

While prices for durable goods fell, prices for services increased 0.4%, the fourth straight monthly gain.

Year-over-year, the PPI slipped to a one-year low of 8.7%. However, the core PPI rose month-over-month to 0.4%, up from 0.3% in July. This also matched economists’ expectations. But the annualized core PPI came in higher than expected, totaling 7.3%.

This comes one day after the annual inflation rate slowed to 8.3% in August, higher than economists’ expectations of 8.1%. But it was the core inflation rate that surprised everyone, rising to 6.3% year-over-year. On a month-over-month basis, the consumer price index (CPI) rose 0.1% and the core CPI doubled to 0.6%.

In other economic data, mortgage applications fell 1.2% in the week ending September 9, according to the Mortgage Bankers Association (MBA). The 30-year mortgage rate also increased to 6.01%, up from 5.94% in the previous week. This is the second time this year that the 30-year mortgage rate topped 6%.

The US Treasury market was mostly up across the board, with the benchmark ten-year yield added 0.6 basis points to 3.429%. The one-year bill rose 4.2 basis points to 3.792%, while the 30-year bond slid 0.7 basis points to 3.502%. The spread between the two- and ten-year yields widened to -37 basis points.

The US Dollar Index (DXY), which gauges the greenback against a basket of currencies, tumbled 0.26% to 109.53, from an opening of 109.97. The index has spiked more than 14% year-to-date.

The USD/CAD currency pair dipped 0.03% to 1.3171, from an opening of 1.3175, at 13:12 GMT on Wednesday. The EUR/USD rose 0.39% to 1.0005, from an opening of 0.9967.