U.S. producer inflation continued to moderate in April with April PPI on a year-over-year basis, total PPI was up 2.3% versus up 2.7% in March. Excluding food and energy, PPI was up 3.2% versus 3.4% in March. PPI rose 0.2% month-over-month in April (consensus +0.3%) following an upwardly revised -0.4% decline (from -0.5%) in March. The index for final demand (Core PPI), excluding food and energy, increased 0.2% month-over-month in April (consensus +0.3%) following an upwardly revised unchanged reading (from -0.1%) in March.
The release was in line with a moderating Consumer Price Index we saw yesterday. In turn that brings back to the fore the Fed’s monetary policy path with moderation in pipeline measures.
The Federal Reserve has been on an aggressive path to reducing historically high U.S. inflation, we are a long way from the Central Bank transitory mantra.
April 2023 PPI
US PPI Highlights.
- US PPI Final Demand (M/M) Apr: 0.2% (est 0.3%; prev -0.5%)
- US PPI Ex Food And Energy (M/M) Apr: 0.2% (est 0.2%; prev -0.1%)
- US PPI Final Demand (Y/Y) Apr: 2.3% (est 2.5%; prev 2.7%)
- US PPI Ex Food And Energy (Y/Y) Apr: 3.2% (est 3.3%; prev 3.4%)
Annual producer inflation eased for a 10th straight month to 2.3%, the lowest since January 2021 and the core rate fell to 3.2%.
Where the price gains were:
- 80% of the general increase is due to a 0.3% rise in services cost, the biggest since November, as prices for portfolio management surged 4.1%.
- Costs also moved higher for food and alcohol wholesaling, outpatient care, loan services, hospital inpatient care, and guestroom rental.
- Goods prices were up 0.2%, mainly due to an 8.4% surge in gasoline.
- Prices were also higher for fresh and dry vegetables, carbon steel scrap, plastic resins and materials, aircraft and aircraft equipment, and fluid power equipment.
- Annual producer inflation eased for a 10th straight month to 2.3%, the lowest since January 2021 and the core rate fell to 3.2%.
Where the price losses were:
- All indices were higher
US PPI
US Core PPI
US April CPI
PPI was released after consumer price data for April. Annual inflation cooled for the ninth straight month on a year-over-year basis, total CPI was up 4.9%, its lowest level since April 2021, just below last months, and expected 5 per cent. However, core-CPI only dipped slightly to 5.5% year on year, barely moving since the end of last year. On a monthly basis, the headline CPI index rose 0.4 per cent, versus a 0.1% gain in March.
Source BLS
From the Traders Community News Desk