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

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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
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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.

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