**MNI 5 Things: April PPI Below-Expected +0.1%, Core +0.2%>

--5 Things We Learned From The April PPI Data

By Kevin Kastner, Sara Haire, and Holly Stokes

     WASHINGTON (MNI) - The following are the key points from the 

Producer Price Index data for April released by the Labor Department 

Tuesday: 

     - The April PPI data were softer than in March, with a 0.1% gain 

for the overall figure, below the 0.2% gain expected. The ex. food and 

energy reading was on expectations with a 0.2% rise, while PPI ex. trade 

services, food, and energy rose only 0.1%. 

     - The softer readings for April 2018, paired with strong gains in 

April 2017, cut the annual measures of inflation following upward 

movement in previous months. Overall PPI is now up 2.6% y/y vs 3.0% in 

March, while ex food and energy PPI moved down to 2.3% y/y vs 2.7% in 

March and PPI ex food, energy and trade services are now up 2.5% y/y vs 

2.9% in March. The year/year rates could rebound next month, as PPI rose 

only 0.1% month/month in May 2017. 

     - The personal consumption price measure in the data, which some 

analysts use as a preview measure for the PCE price data, fell 0.1% both 

including and excluding food and energy. Outside of food, energy and 

trade services, the personal consumption measure was flat. 

     - Energy prices posted a modest rebound, rising 0.1% in April after 

a 2.1% drop in March and a 0.5% decline in February. This partially 

offset a 1.1% reversal in food prices, which resulted from most of food 

categories that saw March increases pulling back. The volatile trade 

services component was up 0.2% in April, the same as in March. 

     - Within the core, there was little movement in the usually watched 

categories, as passenger car prices were flat and light truck prices 

fell 0.1%. Final demand services were helped by a 9.2% jump in 

broker/dealer services, offset by a record 1.2% drop in legal services. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,M$U$$$,MAUDR$]