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Producer Price Index rose 0.2% in April, ex Fd & Engy up 0.4%
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The Producer Price Index for final demand rose 0.2 percent in April, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices advanced 0.6 percent in March and 0.1 percent in February. (See table A.) On an unadjusted basis, the final demand index increased 2.2 percent for the 12 months ended in April.
Leading the April rise in the index for final demand, prices for final demand goods climbed 0.3 percent. The index for final demand services edged up 0.1 percent, and prices for final demand construction advanced 1.6 percent.
The index for final demand less foods, energy, and trade services moved up 0.4 percent in April, the largest increase since rising 0.5 percent in January 2018. For the 12 months ended in April, prices for final demand less foods, energy, and trade services advanced 2.2 percent.
Final Demand
Final demand goods: The index for final demand goods moved up 0.3 percent in April, the third consecutive increase. The April advance can be traced to prices for final demand energy, which rose 1.8 percent. In contrast, the index for final demand foods fell 0.2 percent. Prices for final demand goods less foods and energy were unchanged.
Product detail: Most of the April rise in the index for final demand goods is attributable to prices for gasoline, which increased 5.9 percent. The indexes for meats; search, detection, navigation, guidance systems, and related equipment; electric power; pharmaceutical preparations; and processed young chickens also moved higher. Conversely, prices for fresh and dry vegetables decreased 11.6 percent. The indexes for thermoplastic resins and materials and for liquefied petroleum gas also declined. (See table 4.)
Final demand services: Prices for final demand services inched up 0.1 percent in April following a 0.3-percent advance in March. Leading the increase in April, the index for final demand services less trade, transportation, and warehousing rose 0.3 percent. Prices for final demand transportation and warehousing services climbed 1.0 percent. In contrast, margins for final demand trade services fell 0.5 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.)
Product detail: Most of the April advance in the index for final demand services can be traced to prices for portfolio management, which jumped 5.3 percent. The indexes for hospital outpatient care; transportation of passengers (partial); machinery, equipment, parts, and supplies wholesaling; and fuels and lubricants retailing also moved higher. Conversely, margins for food and alcohol retailing decreased 3.1 percent. The indexes for traveler accommodation services; health, beauty, and optical goods retailing; and long-distance motor carrying also declined.
Posted: May 9, 2019 Thursday 08:30 AM