Producer Prices Slip in April

Producer prices fell 0.4 percent in April, seasonally adjusted, according to the U.S. Bureau of Labor Statistics, after increasing 0.2 percent in March. Over 70 percent of the decrease in final demand prices is attributable to a decline in the index for final demand goods. On an unadjusted basis, producer prices are down 1.3 percent from the previous year.

After rising in March for the first time in eight months, final demand goods declined by 0.7 percent in April. Final demand energy contributed largely to the decline as prices for gasoline decreased 4.7 percent. Final demand for foods decreased 0.9 percent, while demand less foods and energy decreased by 0.1 percent.

Final demand services were sluggish as well, falling 0.1 percent after rising 0.1 percent in March. Final demand for trade services led the decrease as it fell 0.8 percent. More than 40 percent of the April decrease could be attributed to margins for machinery and equipment wholesaling, which declined by 1.0 percent. In contrast, prices for securities brokerage, dealing, investment advice and related services rose by 4 percent.