REPEAT:MNI DATA ANALYSIS: April PPI Rose 0.1%, Up 0.2% Core>

Repeats Story Initially Transmitted at 12:30 GMT May 9/08:30 EST May 9

--April PPI Ex. Food, Energy, Trade +0.1%; Trade Services +0.2%

--PPI +2.6% Y/Y Vs +3.0% In March, Ex Food, Energy +2.3% Vs +2.7%

By Kevin Kastner, Sara Haire, and Holly Stokes

     WASHINGTON (MNI) - Final demand PPI rose by 0.1% in April, slower 

than the 0.2% gain expected, with an as-expected 0.2% gain outside of 

food and energy prices, data released by the Bureau of Labor Statistics 

Wednesday showed. 

     The month/month gains were smaller than those seen in April 2017, 

which resulted in sharp declines in the year/year rates. This could be 

reversed next month, as gains in May 2017 were much smaller.

     The personal consumption price measure in the data, which some 

analysts use a preview measure for the PCE price index, fell by 0.1% 

overall and ex. food and energy, and were flat excluding trade services, 

suggesting some downside risk to the consumer inflation data. 

     Within the core, there was little movement in the usually volatile 

passenger car and light truck categories, while services showed a mix of 

rising brokerage services prices offset by falling legal services 

prices.

--ENERGY UP SLIGHTLY, FOOD REVERSES

     Energy prices rose 0.1% in April after declines in the previous 

two months, led by a 4.0% gain in petroleum gas prices and a 1.8% rise 

in diesel fuel prices. Partially offsetting these gains were a 0.4% 

decline in gasoline prices and a 0.5% drop in electric power prices.

     Food prices fell 1.1% after a 2.2% surge in March. The categories 

that drove the March increase -- particularly finfish, vegetables, and 

eggs -- pulled back in April.

     Trade services prices rose 0.2% in the month, while the PPI core 

rate the BLS prefers, which excludes the change in trade services as 

well as food and energy, rose 0.1% in April. 

--Y/Y INFLATION TAKES A BREAK 

     The year/year rates for these measures indicated signifiant 

deceleration due in large part to base factors from an April 2017 surge. 

Overall PPI was up 2.6% year/year in April after a 3.0% year/year rise 

in March. 

     At the same time, the year/year rate for PPI excluding food and 

energy slowed to 2.3% from 2.7% in March, while the year/year rate for 

PPI excluding food, energy and trade services slipped to 2.5% from 2.9%. 

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