INSUBCONTINENT EXCLUSIVE:
NEW YORK: US producer prices barely rose in April after strong gains in the first quarter, held down by a moderation in the cost of both
goods and services, which could ease fears that inflation pressures were rapidly building up.
The slowdown in wholesale price growth
reported by the Labor Department on Wednesday is likely temporary as manufacturers have been reporting paying more for raw materials
Economists also expect oil prices to surge after President Donald Trump pulled the United States out of an international nuclear deal with
price index for final demand edged up 0.1 per cent last month after increasing 0.3 per cent in March
That lowered the year-on-year increase in the PPI to 2.6 per cent from 3.0 per cent in March.
Economists polled by Reuters had forecast the
PPI gaining 0.2 per centlast month and rising 2.8 per cent from a year ago.
A key gauge of underlying producer price pressures that excludes
food, energy and trade services also nudged up 0.1 per cent last month
The so-called core PPI had increased by 0.4 per cent in each of the past three months.
In the 12 months through April, the core PPI rose 2.5
per cent after jumping 2.9 per cent in March
sanctions against the Opec member
Oil prices rose more than 2.5 per cent
increased 1.9 per centyear-on-year in March and is expected to breach its target in the coming months.
