Producer prices in the U.S. saw a modest increase in the month of April, the Labor Department revealed in a report released on Friday.
The Labor Department said its producer price index for final demand crept up by 0.2 percent in April after edging down by 0.1 percent in March.
Producer prices rose for the first time in three months, although the pace of growth fell short of economist estimates for a 0.3 percent increase.
The index for final demand services edged up by 0.1 percent in April, while the index for final demand goods rose by 0.2 percent.
A 4.5 percent jump in prices for portfolio management contributed to the uptick by the services index, while the increase by the goods index partly reflected a 22.1 percent spike in prices for carbon steel scrap.
The report also said energy prices rose by 0.2 percent in April after surging up by 1.8 percent in the previous month.
On the other hand, food prices slipped by 0.3 percent in April after sliding by 0.9 percent in March. Food prices fell for the third straight month.
Excluding food and energy prices, core producer prices inched up by 0.1 percent in April after dipping by 0.1 percent in the previous month. The modest increase in core prices matched economist estimates.
Compared to the same month a year ago, producer prices were unchanged in April after edging down by 0.1 percent in March.
Meanwhile, the annual rate of core producer price growth slowed to 0.9 percent in April from 1.0 percent in the previous month.
The Labor Department is scheduled to release its more closely watched monthly report on consumer price inflation next Tuesday.
by RTT Staff Writer
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