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  • US Producer Prices Fall by Most Since October 2023

US Producer Prices Fall by Most Since October 2023

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Bloomberg Mercury Apr 11 08:40 · 20.2k Views

US wholesale prices unexpectedly declined by the most since October 2023 in March as the producer price index fell 0.4% from a month earlier following a revised 0.1% gain in February. Michael McKee breaks down the numbers on Bloomberg Television.

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Transcript

  • 00:00 We're going to start with a big surprise again this morning on inflation that the Fed should be touting
  • 00:05 the PPI for final demand.
  • 00:07 Headline number falls 4/10
  • 00:09 after
  • 00:10 last month.
  • 00:11 A
  • 00:12 110th
  • 00:14 gain, which is revised upward a little bit, but the forecast was for just 2/10.
  • 00:18 Pushes the year over year to 2.7% from 3.2%.
  • 00:23 A big drop in the annual rate of producer prices
  • 00:27 at a headline level.
  • 00:28 And
  • 00:29 the
  • 00:29 Bureau of Labor Statistics says a lot of that was gasoline prices.
  • 00:33 We saw that effect yesterday in CPI
  • 00:35 for the core,
  • 00:36 a 110th decline after a 110th rise the prior month.
  • 00:40 We were expecting a 3/10 rise.
  • 00:43 Pushes the core rate to 3.3 from 3.4 and then
  • 00:48 core X trade up just a 10th.
  • 00:50 3.4% is your annual rate there.
  • 00:53 Now goods prices is the surprise in the PPI.
  • 00:58 Not completely because of gasoline, but final demand for goods moved down 9/10, the largest decrease since October of 2/20/2020.
  • 01:08 Three
  • 01:09 3/4 of that they say is because of final demand.
  • 01:13 Energy food went down 2.1% during the month.
  • 01:17 The indexes for chicken eggs, beef veal, fresh dried vegetables and diesel fuel moved lower,
  • 01:24 so we'll have to check on the
  • 01:26 eggs prices.
  • 01:27 But services
  • 01:28 fell 2/10 of a percent, so both services and
  • 01:32 goods were down.
  • 01:33 There was some thought that we might see
  • 01:36 some tariff bleed through into this report, which of course
  • 01:40 put together before the tariff announcements, but doesn't look like there's much in there right now.