The 0.7% U.S. April PPI decline The 0.7% U.S. April PPI decline extended the big 0.6% March drop, thanks to another big energy price drop and a smaller food price decline. Core prices rose by a lean 0.1% in April to extend the string of 0.1%-0.2% monthly gains since October, with restraint due to small vehicle price declines. Commodity price gains into May should cap the recent-two month drop, and analysts assume a 0.4% May headline PPI rise with a 0.2% core price increase. The y/y headline gauge fell to 0.6% from 1.1% in March and 1.7% in February, versus a slightly lower 0.5% recent-low in July of 2012. The core y/y gauge remained at 1.7% for a third consecutive month, versus a 0.9% cycle-low in December of 2009. Analysts expect a climb in headline y/y gains back toward 2% by June due to harder comparisons alongside continued sub-2% y/y core gains. Yesterday's trade price report revealed big April food and energy price drops alongside core price declines that further reversed early-Q1 gains. For the remaining April reports, analysts expect 0.1% headline CPI and PCE chain price drops, with respective core price gains of 0.2% and 0.1%.
U.S. PPI fell 0.7% April after a 0.6% decline in March. The core rate edged up 0.1% U.S. PPI fell 0.7% April after a 0.6% decline in March. The core rate edged up 0.1% after March's 0.2% increase. Energy prices fell 2.5% after March's 3.4% drop. Foods were down 0.8%. Consumer goods prices dropped 1.0% as gasoline prices fell 6.0% following a 6.8% drop previously. Passenger car prices declined 0.2%. Residential gas was up 4.5%. Women's apparel was up 0.2%. Capital equipment costs inched up 0.1%, with light motor truck prices down 0.1% and computers off 0.9%. Data are a little weaker than expected and continue to reflect a global slowdown in inflation.