April producer prices rose sharply, outpacing estimates and signaling persistent inflationary pressures in the US economy.
US producer prices for final demand jumped 1.4% in April, well above the 0.5% estimate, while the year-over-year rate accelerated to 6.0% from 4.3%. Core PPI, excluding food and energy, climbed 1.0% month-over-month, reinforcing concerns about entrenched inflation.
The hotter-than-expected print follows a prior year-over-year rate of 4.3% and contrasts with consensus forecasts of 4.9%. The data adds to worries that inflation may remain elevated, complicating the Federal Reserve’s policy path.
Markets showed muted reaction initially, with bonds and oil little changed, while the USD strengthened modestly in early trading.