Producer Price Index (PPI) Finds Slight Inflation Gain in April

The Labor Department reported on Friday inflation, as measured by the producer price index (PPI) gained slightly 0.2% in April after falling 0.1% in March. However, in the 12 months through April, the PPI was flat after falling 0.1% in March through the same time period.

Economists polled by Reuters had forecast the PPI increasing by 0.3% last month and 0.2% from a year ago.

Inflation continues to be weighed down by the impact of the dollar’s relative gains against main U.S. trading partners and oil prices precipitously falling. The dollar has this year dropped 2.5 percent on a trade-weighted basis and oil has bounced off multi-year lows.

Last month, energy prices put on a gain of just 0.2% after increasing 1.8% in March. Wholesale food prices fell 0.3% following a 0.9% decline in March. Wholesale chicken eggs tanked 33.9 percent in April. Prices for services inched up 0.1% after falling 0.2% in March.

The so-called core PPI–or, the gauge of producer prices excluding food, energy and trade services–increased 0.3% last month after remaining flat in March. The core was up 0.9% in the 12 months through April after a similar increase in March.