In April, U.S. producer prices saw a more significant rise than anticipated, driven by robust increases in both service and goods costs, suggesting persistent inflation as the second quarter began.
According to the Bureau of Labor Statistics within the Labor Department, the producer price index for final demand climbed 0.5% last month, rebounding from a revised 0.1% decline in March.
Economists surveyed by Reuters had predicted a 0.3% increase in the PPI following March's previously reported 0.2% uptick. Over the twelve months leading to April, the PPI rose by 2.2%, compared to a 1.8% increase in March.
Inflation picked up pace in the first quarter due to robust domestic demand, marking a departure from the deceleration observed through much of the previous year. There's cautious optimism among economists that prices might start to trend downward this quarter, especially with signs of a cooling labor market.
Financial markets are anticipating the Fed ...
Sign up to read the entire article. It's Free and Simple to sign up!
We are offering a
FREE 30 day trial which includes full access to the following services here at investorAi.
You only need an email address to sign up! You will NOT be billed at the end of your trial unless you wish to begin a subscription.