Wholesale prices rose less than expected in April based on a Labor Department report on Thursday that provided more hope that inflation is at least on a downward trend.
The producer price index, a measure of prices for final demand goods and services, rose 0.2%, compared to the Dow Jones estimate of 0.3%. Excluding food and energy, core PPI also rose 0.2%, in line with expectations.
On an annual basis, the PPI rose just 2.3%, down from 2.7% in March and the lowest reading since January 2021. Although the PPI increase was less than expected, the services index rose 0.3%, the biggest move since November 2022 based on the Bureau of Labor Statistics report.
A separate Labor Department report Thursday showed that jobless claims for the week ended May 6 jumped to 264,000, up 22,000 from the previous period. That number was well above Dow Jones estimates for 245,000 and the highest reading since Oct. 30. 2021.
The number of Americans filing new claims for jobless benefits jumped last week to the highest level since late 2021, suggesting that higher interest rates are beginning to have an impact on the labor market.
The US dollar index, which measures the US dollar against six major currencies, traded at a strong level, a 0.30% strengthening at 101.570.
