US Producer price index falls in April | International Travel News

US Producer price index falls in April

International Travel News Friday 11th May, 2012

• PPI drop of 0.2 per cent in April is biggest since October

• Wholesale energy prices tumbled 1.7 per cent

• For 12 months till April end wholesale prices have risen just 1.9 per cent

WASHINGTON - Dip in energy and intermediate goods costs helped to drive down U.S. wholesale prices lower in April, indicating easing of inflationary pressures.

U.S. Bureau of Labor Statistics reported Friday that the producer price index, which measures price changes before they reach retail sector, dropped 0.2 per cent in April, the first such decline after four months and the biggest decline since October.

Wholesale energy prices tumbled 1.7 per cent, accounting for half the drop in energy costs, and a major saver in manufacturing costs.

For 12 months till April end wholesale prices have risen just 1.9 per cent. That's the smallest 12-month change since October 2009 and in line with the Federal Reserve's inflation target.

The prices for finished goods were unchanged in March though they had increased 0.4 per cent in February.

On an unadjusted basis, prices for finished goods advanced 1.9 per cent for the 12 months ended in April, the seventh straight month of slowing year-over-year increases following a 7.0-per cent rise for the 12 months ended September 2011.

At the earlier stages of processing, prices received by manufacturers of intermediate goods decreased 0.

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