Wholesale inflation rose 11% in April as producer prices continued to rise

A worker loads an aluminum coil onto a truck at the Arconic manufacturing facility in Alcoa, Tennessee, Wednesday, March 9, 2022.

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Prices at the wholesale level accelerated further in April, as part of an ongoing broader inflation problem in the US economy, the Bureau of Labor Statistics reported Thursday.

The Producer Price Indexwhich measures how much manufacturers get for products at their initial sale, is up 0.5% in the month and 11% from a year ago, down from a record 11.5% in March.

Excluding food, energy and commercial services, core PPI rose 0.6% in April and 6.9% from a year ago, down from 7.1% last month.

Both monthly increases were fully in line with Dow Jones estimates. The core PPI rose 1.6% in March while the core index rose 0.9%.

These numbers came the day after the BLS report on consumer prices for goods and services in the market It rose 8.3% from last yearDown from 8.5% in March, but still indicative of the worst inflation the US has seen since the early 1980s.

A separate economic report Thursday showed that Unemployment claims totaled 203,000 For the week ending May 7, an increase of 1,000 over the previous period. This was higher than the Dow Jones estimate of 194,000.

Continuing claims, however, declined, dropping by 44,000 to 1.343 million, the lowest level since January 3, 1970.

While the news was Pretty good for the job marketInflation is what most confuses policymakers and threatens to frustrate expansion. This week, President Joe Biden spoke several times about the massive price increases during his administration and I made several suggestions to address the problem.

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Gas and groceries were responsible for much of the rise in inflation, with indexes in these two sectors up 1.7% and 1.5% in April, according to producer price index data. Car prices, especially used cars, were also a major component of inflation, and the PPI of cars and equipment rose 0.8% during the month.

The gasoline index fell 3.2 percent during April, when prices fell at the pump. However, this trend has since reversed, with gas prices rising Back around record heights.

While Biden has pledged to take action at the legislative level, he has also made reference to the role of the Federal Reserve. Federal Reserve last week Agree to a half percentage point increase In the reference interest rate, which is the second increase this year with more expected.

Thursday morning market prices pointed to a possible additional half-point rise in June and the year ending with the fed funds rate around 2.5%-3% from the current target range of 0.75-1%, according to CME Group Futures Tracker.

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