–YOY PPI +5.5%, YOY Core PPI +1.0%; Energy, Food Fall
By Joseph Plocek
WASHINGTON (MNI) – The U.S. April PPI report was benign, though the
prints were on both sides of expectations, and the bottom line is that
there are few signs of disinflation.
April PPI printed -0.1% and core +0.2% (+0.02313% unrounded). Over
the year, overall PPI was up 5.5% and core up 1.0%, both rising at
modest paces.
Energy posted -0.8%. All areas fell except residential electric.
Food posted -0.2%, led by drops in eggs, milk, and vegetables.
These led the overall index lower.
Core was boosted by +0.6% for passenger cars, +1.9% appliances, and
+0.3% pharmaceuticals. Light trucks were -0.2%. The latter suggests the
price gain in cars reflected demand rather than a push from
manufacturers.
With core rising and April marking a sixth gain over-the-year in
the overall index, prices generally are still rising. Worries about
deflation seem misplaced, though the PPI rates of change are down
slightly from the pace in March.
Intermediate PPI was +0.8% (an 11th gain) and Crude -1.2% (where a
drop was all in energy), also indicating price pressures mostly will be
on the up-side ahead. Businesses so far appear inclined to absorb price
pressures when they do appear. There might also be export demand that is
boosting input prices.
The April CPI data are due Wednesday.
**Market News International Washington Bureau: (202) 371-2121**
[TOPICS: MAUDS$,M$U$$$,MT$$$$,MAUDR$]