May 12, 2022 08:48AM ET
By: AnalysisWatch
Producer price inflation in the USA showed signs of moderating in April but remained in double digits as the rise in energy prices eased somewhat in the wake of the Russian invasion.
Annual factory gate inflation dropped to 11.0% from 11.5%, while monthly price increases moderated to 0.5% from 1.2% in March. The monthly increase was in line with consensus forecasts.
However, there were also signs of weakening price trends in the core PPI, which excludes volatile food and energy prices. Core PPI rose just 0.4% month-over-month, less than the 0.6% expected, a significant slowdown from the upwardly revised 1.2% in March.
The figures come a day after official data showed consumer inflation also edged down slightly from its 40-year high last month, although strong price pressures remain in some areas.
Separately, the Labor Department reported that initial claims for unemployment benefits exceeded 200,000 last week for the second week in a row. Initial claims totaled 203,000, virtually unchanged from the previous week's upwardly revised 202,000.