Producer price index data reportedly remained high in April. This index is made part of the measure of inflation and it carries an indication that the problem of inflation remains severe and continues to affect the US economy.
The Producer Price Index (CPI), which measures the total turnover of producers for them at the beginning of sales, was reported to have declined 0.5% during the month and eventually led to a reading of 11% per annum. The April data was only slightly down from the record recorded in March of 11.5%. Economists surveyed by Dow Jones expect a similar reduction of 0.5%. Excluding food, energy and trade services, the core PPI increased by 0.4% in April and 6.9% from a year ago but declined from 7.1% in March.
This important data came a day after the Bureau of Labor Statistics reported that consumer prices for goods and services in the market rose 8.3% from a year ago, down from 8.5% in March despite still showing the worst inflation the U.S. has ever seen. since the early 1980s.
A separate economic report Thursday showed that jobless claims totaled 203,000 for the week ended May 7, an increase of 1,000 from the previous period. However, continued claims were reported to have fallen by 44,000 to 1.343 million, the lowest level since January 3, 1970.
While the news is largely good for the job market but inflation still continues to disrupt policymakers in organizing the economy and also poses a threat to economic growth. President Joe Biden this week has spoken several times about rising price hikes during his administration and put forward a number of proposals to address the problem.
Gas and groceries were the main factors driving the surge in inflation with prices rising by 1.7% and 1.5% respectively in April. The same goes for car prices which rose 0.8%.
The market now continues to focus on how policymakers are going to deal with the increasingly worrisome problem of inflation.
