Growth in the US producer price index slowed as expected in April, according to figures released on Thursday by the Labor Department.
The producer price index for final demand rose 0.5%, in line with analysts’ expectations and down from 1.6% in March and 1.1% in February.
On the year, PPI rose 11% in April, versus 11.5% the month before and expectations for a 10.7% jump.
Core PPI, which excludes food and energy prices, was up 0.4% on the month compared with an upwardly-revised 1.2% in March. On the year, core PPI rose 8.8%.
Mahir Rasheed, US economist at Oxford Economics, said: “Coupled with yesterday’s modest reprieve in consumer price inflation, the latest PPI data offer tentative signs that price pressures perhaps peaked early in Q2.
“Still, with demand remaining fairly buoyant and the supply side of the economy facing persistent supply-side headwinds, it may be too early to celebrate April’s moderation in the PPI. We remain patient and will look for future PPI readings to confirm whether inflation pressures are indeed subsiding.”
