Producer Prices (Apr.)

The bigger-than-expected 0.5% m/m increases in both all items and core final demand producer prices in April were mainly due to downward revisions to earlier months, with the 0.2% m/m gains in March both revised to 0.1% declines. As a result, the annual rate of all items final demand PPI inflation only edged up to 2.2%, from 2.1%. That modest increase in the annual headline rate was mainly due to a 5.4% increase in gasoline prices, however, which, with crude oil prices slumping more recently, should be more than reversed in May.