US Producer Prices (PPI) Increased By 0.2% In April
The US producer prices saw a moderate increase during the month of April. This rebound also leads to a small jump in producer inflation. According to experts, this is a sign that inflation pressure in the country is now slowing down.
Overall, the PPI increased by 0.2% during the last month, according to the data from Labor Department. The relevant authorities also revised the data for March, which showed a decrease of 0.4% in the PPI instead of the earlier value of 0.5%.
Annual PPI Reading Stands At 2.3%
If we calculate the PPI from April 2023 to the last 12 months, the PPI increased by 2.3%. According to experts, this increase in PPI is one of the smallest yearly increases since January 2021 (2 years ago).
According to economists, the forecast for the PPI reading was an increase of 0.3%. However, the actual reading turned out to be 0.2% only, which is a good sign for the US economy.
As for what caused the increase in PPI, around 80% of that can be attributed to the cost of services; in addition, an increase in the cost of outpatient care, food, loan services, hotel, hospital inpatient care, & investment advice also occurred during April.
Over all, it appears that inflation is no longer as bad as it used to be just a few months ago. And now, there are hints that the Fed may put a stop to its tightening policy in the next few months. According to estimates, the current tightening campaign is one of the fastest sine the 1980s!
And if we exclude the trade services components, energy, and food from the reading, then the total gain in producer prices was only 0.2%.
Over all, the core PPI went lower from a reading of 3.7% in March to only 3.4% in April. And if the current pace continues, it would be a good news for the US consumers.