WASHINGTON - The producer price index in April unexpectedly declined by 0.1%, led lower by energy prices, the Labor Department reported today.
Core producer prices, excluding food and energy costs, rose 0.2%, the sixth consecutive monthly increase.
Economists expected total producer prices and core prices to each rise 0.1%, according to the median estimate from Thomson Reuters. Producer prices rose 0.7% in March, unrevised from the initial report.
Prices for finished energy goods decreased 0.8% in April as gasoline prices fell 2.7%. Energy costs increased 0.7% in March.
Food prices declined 0.2% for the month, the first decrease since last July. Producer food prices increased 2.4% in March.
Core goods prices were driven higher by passenger car prices, which rose 0.6%.
For the year ending in April, total producer prices rose 5.5% and core prices increased 1.0%.
The Labor Department reported last week that import prices increased 0.9% in April. The consumer price index for April will be released tomorrow. Economists are expecting consumer prices and core prices will increase 0.1%.
