Breitbart is reporting that a key inflation gauge is showing troubling signs based on economic activity last month, with prices going in the opposite direction from where consumers hoped they’d be heading:
“The producer price index for final demand, which measures the prices paid to U.S. businesses for their goods and services, rose by 2.2 percent in April, the Department of Labor said Thursday. Compared with a year ago, the index is up 2.2 percent, the largest increase in a year.
“Economists had forecast a 0.3 percent gain in April compared with March and a 2.2 percent gain year-over-year.
“The impact of the higher-than-expected figures for April was somewhat softened because the prior month’s estimate was revised down from a 0.2 percent gain to a decrease of 0.1 percent.
“The so-called core producer price index—a measure that excludes prices of food and energy—jumped 0.5 percent in April after calling 0.1 percent in March. Economists had forecast a 0.2 percent gain. Over the year, core producer prices are up 2.4 percent.”
To read the whole Breitbart article, please click HERE.