DATA SNAP: US PPI Rises In April, But Core Index Stays Flat
Last update: 5/11/2007 8:30:00 AM
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Mar Producer Price Index ! Consensus: !
! Overall: +0.6% !
Key Numbers: Apr Mar ! Core: +0.2% !
PPI Index: +0.7% +1.0% ! Actual: !
Core Index: 0.0% +0.0% ! Overall: +0.7% !
Intermediate: +0.9% +1.0% ! Core: +0.0% !
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By Rebecca Christie
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--Higher food and energy prices pushed U.S. wholesale prices up last month, but prices were unchanged outside of those volatile sectors.
The producer price index for finished goods rose 0.7% in April, the Labor Department said Friday, versus 1.0% in March. The core PPI, which excludes food and energy, was unchanged for the second month in a row.
Overall wholesale prices grew more than Wall Street expected, but the core inflation number was significantly lower than market predictions. The median forecast of 24 economists polled by Dow Jones Newswires called for an increase of 0.6% in the headline PPI and 0.2% in the core.
The recent lack of core wholesale price pressures may reassure Federal Reserve policymakers, who have been concerned that consumer prices remain above their 1% to 2% comfort zone. Earlier this week, the Fed left its short-term interest rate target at 5.25% and said inflation pressures remain its top concern about the U.S. economy.
In Friday's report, the overall producer price index grew 1.0% in March, unchanged from the Labor Department's initial report.
In the 12 months through April, wholesale prices rose 3.2%. The core PPI, in contrast, was up just 1.5% from a year ago.
Producer prices for energy increased 3.4% last month compared to March. Gasoline prices swelled 8.2%. Residential natural gas rose 0.5%.
Food prices advanced 0.4%, with cauliflower prices up 76%, green peppers up 66.2% and tomatoes up 45.8%.
Wholesale prices of passenger cars fell 1.0%, while light truck prices fell 0.5%. But motor home prices rose 2.7%, a new record. The previous record of 1.8% was set in December 1989.
Deeper in the production pipeline, price pressures were mixed. Prices of raw materials, known as crude goods, fell by 1.5%, while excluding food and energy they grew 0.4%. Intermediate goods prices increased 0.9% overall and were up 0.8% excluding food and energy.
-By Rebecca Christie; Dow Jones Newswires; 202-862-9243; rebecca.christie@dowjones.com
(END) Dow Jones Newswires
May 11, 2007 08:30 ET (12:30 GMT) |
