Copper climbs as dollar dips with US inflation slowing down

Copper prices rose on Wednesday as the dollar lost ground against most major rivals and following US inflation data today.

US producer prices rose 6.2% in December, below estimates of a 6.8% increase, and down from 7.3% in the previous reading.

Core prices, excluding food and energy, rose 5.5%, below estimates of 5.9%, and down from 6.2% in the previous reading.

US retail sales fell 1.1% in December, missing estimates of a 0.8% decline, and worsening November's 1% drop.

Core sales, excluding transportation, fell 1.1%, missing estimates of a 0.5% increase, and compared to November's 0.6% drop.

Such data shows US inflation is indeed slowing down, paving the way for a slower pace of policy tightening by the Fed.

The dollar index fell 0.5% to 101.8 as of 15:30 GMT, with a session-high at 102.9, and a low at 101.5. 

Copper futures due in March rose 2.4% to $4.32 a pound as of 15:26 GMT.