Producer Price Index Suggests Further Deceleration in Inflation

the staff of the Ridgewood blog

Washington DC, the Producer Price Index for final demand advanced 0.2 percent in April, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices fell 0.4 percent in March and were unchanged in February.

On an unadjusted basis, the index for final demand moved up 2.3 percent for the 12 months ended in April. In April, 80 percent of the rise in the index for final demand is attributable to a 0.3-percent increase in prices for final demand services.

The index for final demand goods advanced 0.2 percent. Prices for final demand less foods, energy, and trade services rose 0.2 percent in April after inching up 0.1 percent in March. For the 12 months ended in April, the index for final demand less foods, energy, and trade services increased 3.4 percent.