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Lower Fuel Prices Drive Down Wholesale Prices
The U.S. producer price index declined 0.2% from March to April, mainly because of a 1.4% drop in energy prices, the Dept. of Labor reports.
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The U.S. producer price index declined 0.2% from March to April, mainly because of a 1.4% drop in energy prices, the Dept. of Labor reports. Year over year, wholesale prices rose 1.9%, the smallest increase in 30 months.
Lower fuel costs offset a 0.1% gain in car prices and higher costs for food, industrial equipment and computers, the Labor Dept. says. Prices of raw materials fell 4.4% month over month, thus giving manufacturers a boost.
The core producer price index, which excludes energy and food, rose 0.2% from March. The core index advanced 2.7% from April 2011, the smallest year-over-year gain since last August.
Economists note that moderate wholesale prices reduce pressure on manufacturers to raise prices and give the Federal Reserve greater leeway to keep interest rates low.
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