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Enviado: 17/5/2005 13:29ECONOMIC REPORT: U.S. producer prices rise 0.6%; Core PPI increases larger-than expected 0.3% in April
By Rex Nutting, MarketWatch
Last Update: 8:31 AM ET May 17, 2005
WASHINGTON (MarketWatch) - U.S. wholesale prices increased a larger-than-expected 0.6% in April, as energy prices continued to push higher, the Labor Department reported Tuesday.
Excluding food and energy prices, the producer price index for finished goods increased 0.3%. Energy prices increased 2.1%, food prices rose 0.1%, and capital goods prices increased 0.2%.
The gains were slightly stronger than expected on Wall Street, where economists had forecast the PPI to rise 0.4%, with core prices expected to increase 0.2%, according to a survey conducted by MarketWatch.
Still, the year-over-year gain in the PPI dipped to 4.8% in April from 4.9% in March. Core prices were up 2.6% year-over-year, unchanged from March.
The PPI had increased 0.7% in March, with core prices up 0.1%.
Inflation cooled slightly in April further back in the production pipeline.
Prices of intermediate goods destined for further processing increased 0.8% after a 1% gain in March. Core intermediate goods prices increased 0.2% after 0.3% in March, bringing the year-over-year increase down to 6.6% from 7.6% in March.
The core intermediate PPI peaked at 8.5% in January.
Coincidence or not, the Federal Reserve typically wraps up its tightening cycle about the time the year-over-year gain in the core intermediate PPI peaks, although this cycle has been anything but typical.
Most observers expect the Federal Open Market Committee to raise short-term rates by a quarter percentage point at the next two meetings at a minimum, bringing the federal funds rate to 3.5% by mid-summer.
Prices of crude goods rose 2.7% in April after 4.3% in March. Crude energy prices increased 7.2%. Crude materials excluding energy fell 1.2%. In the past 12 months, crude energy goods prices have surged 32.6%, while prices of materials excluding energy have fallen 2.3%.
Within the main PPI for finished goods, prices of cigarettes jumped 1.2%, while light truck prices rose 0.6% and car prices gained 0.5%. Drug prices increased 0.9%. Alcoholic beverage prices dropped 0.9%.
Residential natural gas prices soared 6.6%, the biggest increase in two years. Gasoline prices rose 2.6%. Home heating oil prices fell 1.7%.
Energy prices have moderated in May.
By Rex Nutting, MarketWatch
Last Update: 8:31 AM ET May 17, 2005
WASHINGTON (MarketWatch) - U.S. wholesale prices increased a larger-than-expected 0.6% in April, as energy prices continued to push higher, the Labor Department reported Tuesday.
Excluding food and energy prices, the producer price index for finished goods increased 0.3%. Energy prices increased 2.1%, food prices rose 0.1%, and capital goods prices increased 0.2%.
The gains were slightly stronger than expected on Wall Street, where economists had forecast the PPI to rise 0.4%, with core prices expected to increase 0.2%, according to a survey conducted by MarketWatch.
Still, the year-over-year gain in the PPI dipped to 4.8% in April from 4.9% in March. Core prices were up 2.6% year-over-year, unchanged from March.
The PPI had increased 0.7% in March, with core prices up 0.1%.
Inflation cooled slightly in April further back in the production pipeline.
Prices of intermediate goods destined for further processing increased 0.8% after a 1% gain in March. Core intermediate goods prices increased 0.2% after 0.3% in March, bringing the year-over-year increase down to 6.6% from 7.6% in March.
The core intermediate PPI peaked at 8.5% in January.
Coincidence or not, the Federal Reserve typically wraps up its tightening cycle about the time the year-over-year gain in the core intermediate PPI peaks, although this cycle has been anything but typical.
Most observers expect the Federal Open Market Committee to raise short-term rates by a quarter percentage point at the next two meetings at a minimum, bringing the federal funds rate to 3.5% by mid-summer.
Prices of crude goods rose 2.7% in April after 4.3% in March. Crude energy prices increased 7.2%. Crude materials excluding energy fell 1.2%. In the past 12 months, crude energy goods prices have surged 32.6%, while prices of materials excluding energy have fallen 2.3%.
Within the main PPI for finished goods, prices of cigarettes jumped 1.2%, while light truck prices rose 0.6% and car prices gained 0.5%. Drug prices increased 0.9%. Alcoholic beverage prices dropped 0.9%.
Residential natural gas prices soared 6.6%, the biggest increase in two years. Gasoline prices rose 2.6%. Home heating oil prices fell 1.7%.
Energy prices have moderated in May.