US producer prices rose by a smaller-than-expected 0.2 per cent in April after gasoline prices sank, government data showed today, but core inflation at the producer level posted a larger advance.
Economists had expected that producer prices - a gauge of costs at the farm and factory gate - would rise 0.4 per cent after mounting 1.1 per cent in March.
Core producer prices, which strip out volatile energy and food costs, increased by 0.4 per cent. That was twice the rate that had been forecast. Core producer prices over the last 12 months rose 3.0 per cent, the largest gain since December 1991.
Gasoline prices at the producer level fell 4.6 per cent, but they were up 23 per cent over the past year. Overall producer prices were up 6.5 per cent on a year-on-year basis. Food prices were unchanged in April, although within that category the price of rice jumped by 17.4 per cent, notching the largest rise since 1993.
Reuters