US Producer Prices Accelerate 6.2% in April as Inflation Burns Hot

In another sign that inflation in the US is running red-hot, producers passed down significantly higher costs to companies in April for a wide-range of products, amid ongoing dovish monetary and fiscal policies.

According to the Bureau of Labour Statistics, the Producer Price Index (PPI) jumped 0.6% in March, and surged 6.2% from last year’s levels, marking the sharpest increase since data collection for the index began in 2010. The latest print significantly outpaces that of consensus estimates, as economists surveyed by FactSet forecast a monthly increase of 0.3% and a 3.8% jump year-over-year.

The core PPI, which does not account for volatile categories such food, energy, and trade services, rose 0.7% last month, and was up 4.6% from April 2020 levels. The year-over-year increase marked the largest jump since the department first began such calculations in 2014. A sharp increase in steel mill products was the main contributor to the blistering print, while prices for beef and veal, pork, residential natural gas, plastic resins and materials and dairy products also increased in April.

The PPI, which measures the prices paid to producers rather than prices at the consumer level, further attests to the broader price pressure acceleration that is becoming increasingly evident across the US. The latest figures follow Wednesday’s blowout consumer prices report, which showed that CPI exploded by 4.2%— the most since 2008.

Despite growing signs that the US economy’s check engine light is very well on and glowing red, the Federal Reserve continues to insist that it all is just “transitory.


Information for this briefing was found via the Bureau of Labour Statistics. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Mergers Set the Stage for Uranium’s Growth Cycle | Forum-Baselode Merger

The Goal is Gold Production as Soon as Possible! | Gordon Robb – ESGOLD Corp.

Snowline Gold: The Multi Billion Dollar Valley PEA

Recommended

First Majestic Produces 7.9 Silver Equivalent Ounces In Q2, Lifts Production Guidance

Antimony Resources Drills 4.17% Antimony Over 7.4 Metres At Bald Hill

Related News

Canadian Inflation Slows to 6.3% in December

Consumer prices continued to slowly moderate in December, suggesting peak inflation may have passed. Canadians...

Tuesday, January 17, 2023, 08:48:52 AM

US Producer Prices Slow in October as Inflationary Pressures Show Signs of Abating

US producer prices eased in October by more than market expectations, suggesting that inflationary pressures...

Tuesday, November 15, 2022, 12:52:24 PM

Base-Year Effect To The Rescue: Consumer Prices Continue To Decelerate, But Food Inflation Skyrockets

Canadian consumer prices continued increasing in February, albeit at a much slower pace thanks to...

Tuesday, March 21, 2023, 09:05:11 AM

Canada’s Inflation Rate Enters Negative Territory Amid Economic Downturn

According to recent Statistics Canada data, the inflation rate has hit negative territory for the...

Thursday, May 21, 2020, 01:40:26 PM

US Consumer Inflation Expectations Soar to Highest Since 2013

Although the Federal Reserve continues to insist that any sign of growing price pressures are...

Tuesday, July 13, 2021, 01:44:00 PM