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14.05.2024

U.S. PPI increases more than predicted in April

The Labor Department reported on Tuesday the U.S. producer-price index (PPI) rose 0.5 per cent m-o-m in April, following a downwardly revised 0.1 per cent m-o-m drop (from +0.2 per cent m-o-m) in March. 

For the 12 months through April, the PPI increased by 2.2 per cent, accelerating from a downwardly revised 1.8 per cent advance (from +2.1 per cent) in the previous month. This was the strongest annual rise since April 2023 (+2.3 per cent).

Economists had predicted the headline PPI would jump 0.3 per cent m-o-m and 2.2 per cent over the past 12 months.

According to the report, nearly three-quarters of the April advance in the headline index was due to a 0.6-per cent m-o-m gain in the index for final demand services. In addition, the index for final demand goods moved up 0.4 per cent m-o-m.

Excluding volatile prices for food and energy, the PPI increased 0.5 per cent m-o-m and surged 2.4 per cent over 12 months, registering its largest annual gain in eight months. Economists had foreseen advances of 0.2 per cent m-o-m and 2.4 per cent y-o-y for April. In March, the core PPI recorded a 0.1 per cent m-o-m fall (revised from +0.2 per cent m-o-m in the initial estimate) and a 2.4 per cent y-o-y surge.

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