Figures released Wednesday morning showed U.S. 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, figures that could ease fears that inflation pressures were rapidly building up.
The U.S. Labor Department said the slowdown in wholesale price growth is likely temporary as manufacturers have been reporting paying more for raw materials. Economists also expect oil prices to surge after President Donald Trump on Tuesday pulled the United States out of an international nuclear deal with Iran.
The department said on Wednesday its producer price index for final demand edged up 0.1 percent last month after increasing 0.3% in March. That lowered the year-on-year increase in the PPI to 2.6% from 3% in March.
Economists had forecast the PPI gaining 0.2%last month and rising 2.8% from a year ago.
A key gauge of underlying producer price pressures that excludes food, energy and trade services also nudged up 0.1% last month. The so-called core PPI had increased by 0.4% in each of the past three months.
In the 12 months through April, the core PPI rose 2.5% after jumping 2.9% in March. Core goods prices increased 0.3% in April, matching March's gain.
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