DATA SNAP: US Producer Prices Climb More Than Expected
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Apr Producer Price Index ! Consensus: !
! Overall: +0.1% !
Key Numbers: Apr Mar ! Core: +0.1% !
PPI Index: +0.3% -1.2% ! Actual: !
Core Index: +0.1% unch% ! Overall: +0.3% !
Intermediate: -0.5% -1.5% ! Core: +0.1% !
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By Jeff Bater
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--U.S. producer prices climbed in April more than
expected because of a jump in food costs, but core wholesale inflation rose only
mildly as the recession robs companies of pricing power.
The producer price index for finished goods increased a seasonally adjusted
0.3%, the Labor Department said Thursday. The PPI fell 1.2% in March.
Economists surveyed by Dow Jones Newswires expected prices would increase 0.1%
in April.
The core PPI, which excludes food and energy costs, inched 0.1% higher last
month from March. Economists expected a 0.1% increase.
Companies have been shedding inventories in the recession, forcing orders and
production lower. Consumer spending remains weak; retail sales fell 0.4% during
April, the government said this week. This climate makes it difficult for firms
to hike prices.
A separate report Wednesday said U.S. import prices rose last month by the
most in nearly one year, reflecting a third-straight increase in oil prices.
Import prices climbed 1.6% in April from March, the Labor Department said
Wednesday. Prices were down 16.3% compared to April 2008, largely due to sharp
drops in crude during the period. Excluding petroleum, import prices in April
were down 0.4% from March.
In the PPI report, energy prices dropped 0.1% last month, after sliding 5.5%
during March. Wholesale gasoline prices increased 2.6%.
April food prices, meanwhile, were up 1.5%. Eggs broke a record, rising 43.7%.
Vegetables climbed 5.2%. Beef was 4.5% higher. Pork rose 2.5%.
Prices of passenger cars rose 0.2%, while light truck prices climbed 1.1%.
Prices fell in April by 1.0% for airplanes, 1.4% for tobacco products, 0.4%
for shoes, and 0.4% for soap.
Prices of raw materials, known as crude goods, climbed 3.0% on the month. Core
crude goods prices decreased 0.6%.
Intermediate goods prices slid 0.5%, while core intermediate goods decreased
0.9%.
-By Jeff Bater, Dow Jones Newswires; 202 862 9249; jeff.bater@dowjones.com
(END) Dow Jones Newswires
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