US PPI Rose 0.5% in April

U.S. producer prices showed a broad-based gain in April, which pushed the annual increase up to the largest advance in five years, government data showed.

The Labor Department said on Thursday its producer-price index for final demand rose 0.5% last month, exceeding average economists’ estimates polled by MarketWatch for a rise of 0.2% in April.

PPI’s April gain was the largest since January and followed a 0.1% decline in March.

With last month’s jump in prices, the PPI shot up 2.5% in the 12 months through April. That was the biggest gain since February 2012 and followed a 2.3% rise in March.

Nearly half of the advance in the PPI came from core prices.

So-called core PPI, which excludes food, energy prices and trade, rose 0.7% in April after a 0.1% gain in March. Core PPI increased 2.1% in the 12 months through April after advancing 1.7% in March.

Both these gains are records since the government released the new PPI data in August 2013.

Energy prices rebounded 0.8% in April after a 2.9% drop in March. Food prices rose 0.9% for the second straight month. Prices for final demand services rose 0.4% in April after a 0.1% drop in March.

via MarketWatch

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza