Wholesale prices rose just 0.2% in April, less than estimate as inflation pressures ease

[mahatmakanejeeves]

Source: CNBC

ECONOMY

Wholesale prices rose just 0.2% in April, less than estimate as inflation pressures ease

PUBLISHED THU, MAY 11 20238:42 AM EDTUPDATED 3 HOURS AGO

Jeff Cox
https://facebook.com/jeff.cox.7528
https://twitter.com/JeffCoxCNBCcom

KEY POINTS
• The producer price index, a measure of prices for final demand goods and services, increased 0.2%, against the Dow Jones estimate for 0.3%.
• Headline PPI rose just 2.3%, down from 2.7% in March and the lowest reading since January 2021.
• Portfolio management costs and gasoline prices helped push the increase, while a 37.9% plunge n chicken egg prices helped keep the number in check.
• In other news, weekly jobless claims jumped to 264,000, the highest reading since Oct. 30, 2021.

Wholesale prices rose less than expected in April, according to a Labor Department report Thursday that provides more hope that inflation is at least trending lower.

The producer price index, a measure of prices for final demand goods and services, increased 0.2%, against the Dow Jones estimate for 0.3% and after declining 0.4% in March. Excluding food and energy, the core PPI also rose 0.2%, in line with expectations. The core reading was the same excluding trade.

On an annual basis, the headline PPI increased just 2.3%, down from 2.7% in March and the lowest reading since January 2021.

Though the PPI rise was less than expected, the services index increased 0.3%, the biggest move since November 2022, the Bureau of Labor Statistics report stated.

A separate Labor Department report Thursday showed that jobless claims for the week ended May 6 jumped to 264,000, a rise of 22,000 from the previous period. The total was well above the Dow Jones estimate for 245,000 and the highest reading since Oct. 30, 2021. Continuing claims edged higher to 1.81 million.

{snip}

Read more: https://www.cnbc.com/2023/05/11/wholesale-prices-rose-just-0point2percent-in-april-less-than-estimate-as-inflation-pressures-ease.html

[Timewas]

1. Great

except gas went up 20cents a gallon.. Too bad they don't use real world base for these. Inflation rate via government standards is a large pile of used bovine food.

[mahatmakanejeeves]

3. BLS: hold my unleaded and watch this:

except gas went up 20cents a gallon.. Too bad they don't use real world base for these.

Product detail: An 8.4-percent advance in prices for gasoline was a major factor in the April increase in the index for final demand goods.

[mahatmakanejeeves]

2. From the source:

PPI for final demand advances 0.2% in April; services rise 0.3%, goods increase 0.2%
The Producer Price Index for final demand rose 0.2 percent in April. Prices for final demand services increased 0.3 percent, and the index for final demand goods advanced 0.2 percent. Prices for final demand moved up 2.3 percent for the 12 months ended in April.

Economic News Release USDL 23-0944

Producer Price Index News Release summary
Transmission of material in this release is embargoed until 8:30 a.m. (ET) Thursday, May 11, 2023

Technical information: [phone] * [e-mail] * www.bls.gov/ppi
Media contact: [phone] * [e-mail]

PRODUCER PRICE INDEXES - APRIL 2023


The Producer Price Index for final demand advanced 0.2 percent in April, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices fell 0.4 percent in March and were unchanged in February. (See table A.) On an unadjusted basis, the index for final demand moved up 2.3 percent for the 12 months ended in April.

In April, 80 percent of the rise in the index for final demand is attributable to a 0.3-percent increase in prices for final demand services. The index for final demand goods advanced 0.2 percent.

Prices for final demand less foods, energy, and trade services rose 0.2 percent in April after inching up 0.1 percent in March. For the 12 months ended in April, the index for final demand less foods, energy, and trade services increased 3.4 percent.

Final Demand

Final demand services: Prices for final demand services moved up 0.3 percent in April, the largest increase since a 0.4-percent rise in November 2022. Leading the advance in April, the index for final demand services less trade, transportation, and warehousing climbed 0.4 percent. Margins for final demand trade services increased 0.5 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) In contrast, the index for final demand transportation and warehousing services decreased 1.7 percent.

Product detail: Over one-third of the April advance in the index for final demand services can be traced to a 4.1-percent rise in prices for portfolio management. The indexes for food and alcohol wholesaling, outpatient care (partial), loan services (partial), hospital inpatient care, and guestroom rental also moved higher. Conversely, prices for long-distance motor carrying declined 2.3 percent. The indexes for food retailing and for securities brokerage, dealing, and investment advice also fell. (See table 2.)

Final demand goods: Prices for final demand goods increased 0.2 percent in April after falling 1.0 percent in March. Leading the advance, the index for final demand energy rose 0.8 percent. Prices for final demand goods less foods and energy moved up 0.2 percent. In contrast, the index for final demand foods decreased 0.5 percent.

Product detail: An 8.4-percent advance in prices for gasoline was a major factor in the April increase in the index for final demand goods. Prices for fresh and dry vegetables, carbon steel scrap, plastic resins and materials, aircraft and aircraft equipment, and fluid power equipment also moved higher. Conversely, the index for chicken eggs dropped 37.9 percent. Prices for jet fuel and for light motor trucks also declined.

{snip tables and numbers}

________________
The Producer Price Index for May 2023 is scheduled to be released on Wednesday, June 14, 2023, at 8:30 a.m. (ET).

[BumRushDaShow]

4. Meant to look for that this morning

as I had heard about the release yesterday!

Link to tweet

BLS-Labor Statistics
@BLS_gov
·
Follow
PPI for final demand advances 0.2% in April; services rise 0.3%, goods increase 0.2% https://bls.gov/news.release/ppi.nr0.htm
#PPI #BLSdata
8:30 AM · May 11, 2023

Saw this too -

Link to tweet

BLS-Labor Statistics
@BLS_gov
·
Follow
Payroll employment up 253,000 in April 2023 https://bls.gov/opub/ted/2023/payroll-employment-up-253000-in-april-2023.htm
#BLSdata
Employment levels by industry, April 2018–April 2023
11:30 AM · May 11, 2023

[mahatmakanejeeves]

5. Good afternoon. I figured you were busy. NT

[durablend]

6. Meanwhile

The cans of store brand vegetables I buy shot up from 69 cents to 99 cents

That inflation is really easing /s

[mahatmakanejeeves]

7. That's a consumer price. Today's release is about producer prices.

Anyway, I know what you mean. I recall in the long distant past buying bleach by the gallon. The gallon went to 121 ounces, and now a gallon is 2.53 quarts, which works out to 81 ounces.

[IronLionZion]

9. that's no gallon

a gallon is always 128 fluid ounces. So if the jugs are smaller, then it's no longer gallon jugs.

[mahatmakanejeeves]

11. Sssshhhh. You're not supposed to notice that.

Last edited Thu May 11, 2023, 07:20 PM - Edit history (1)

Oh, the containers are clearly labeled. I get to watch them shrink year by year. Going to the store expecting to buy a gallon of bleach is like going to Sears looking for bell bottoms to wear to the disco.

[IronLionZion]

14. Media calls it shrinkflation

lots of containers have gotten smaller or slimmed down their waistlines

[toroyoung]

8. Good

Things are no the right track.

[progree]

10. PPI Graphs and links (with yesterday's CPI graph at the bottom)

Last edited Thu May 11, 2023, 03:26 PM - Edit history (2)

-------^^-DARN, that should read APR 2022, not APR 2023

Rolling 3 month average of CORE PPI (annualized), last 6 readings: 3.4%, 2.9%, 4.5%, 4.0%, 3.8%, 2.2%

The big January +0.6% reading dropped out of the 3 month average, helping to drop the 3 month average thru April by more than 1.5 percentage points

Latest PPI summary http://www.bls.gov/news.release/ppi.nr0.htm
Producer prices front page: http://www.bls.gov/ppi/
Producer Price Index (PPI), seasonally adjusted http://data.bls.gov/timeseries/WPSFD4?output_view=pct_1mth

OLD CORE PPI - Producer Price Index, seasonally adjusted - Final demand goods less foods and energy -
   http://data.bls.gov/timeseries/WPSFD413?output_view=pct_1mth
CORE PPI - Producer Price Index, seasonally adjusted - Final demand less foods. energy. and trade services -
   http://data.bls.gov/timeseries/WPSFD49116?output_view=pct_1mth

I use the latter Core PPI (final demand less foods, energy, and trade services) because that's what the BLS features in its news release).

Compare to yesterday's CPI report which is pretty much been flatlined for several months at more than double the Fed's 2% target



All about yesterday's CPI: https://www.democraticunderground.com/10143072605#post5

[mahatmakanejeeves]

12. Thanks. Good afternoon to you too. NT

[OneCrazyDiamond]

13. Price gouging not as much fun I guess.

well except legacy fuel providers.