Thursday, May 14, 2015

Producer Prices Slipped in April

Producer prices fell 0.4% in April, seasonally adjusted, according to the U.S. Bureau of Labor Statistics, after increasing 0.2% in March. Over 70% of the decrease in final demand prices is attributable to a decline in the index for final demand goods. On an unadjusted basis, producer prices are down 1.3% from the previous year.

After rising in March for the first time in eight months, final demand goods declined by 0.7% in April. Final demand energy contributed largely to the decline as prices for gasoline decreased 4.7%. Final demand for foods decreased 0.9%, while demand less foods and energy decreased by 0.1%.

Final demand services were sluggish as well, falling 0.1% after rising 0.1% in March. Final demand for trade services led the decrease as it fell 0.8%. More than 40% of the April decrease can be attributed to margins for machinery and equipment wholesaling, which declined by 1.0%. In contrast, prices for securities brokerage, dealing, investment advice and related services rose by 4.0%.

Read the BLS release

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