The increase in producer prices in the United States increased more than expected in April and this is a key indicator for the inflation data that will be released this week.
Production prices in the United States increased more than expected in Aprilamid sharp increases in the costs of services and goods, which indicates that inflation remains high at the beginning of the second trimester.
He Production Price Index (PPI) for final demand rose 0.5% last month, after falling a downwardly revised 0.1% in March, the Department of Labor, Bureau of Labor Statistics.
The Economists surveyed by Reuters had predicted a 0.3% increase, after the 0.2% advance in March. In the 12 months through April, the PPI increased by 2.2%, after gaining 1.8% in March.
Bad inflation data in the first quarter
Inflation soared in the first quarter amid strong domestic demand, after slowing for much of last year. Economists are optimistic that prices will resume their downward trend this quarter as the labor market cools.
Financial markets expect the Federal Reserve to begin its easing cycle in Septemberalthough some economists believe the first interest rate cut could come in July.
Earlier this month, the US central bank left its benchmark overnight rate unchanged at the current range of 5.25%-5.5%, where it has been since July. Since March 2022, the Fed has increased its official rate by 525 basis points.
The consumer price data Wednesday could offer new clues about the timing of the long-awaited rate cut.
Source: Ambito
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