The numbers: U.S. producer prices rose 0.2% in April, the Labor Department said Thursday.
Economists polled by the Wall Street Journal had forecast the PPI would rise 0.3%.
In the 12 months through April, the PPI increased 2.3%. It follows a 2.7% gain in March. This is the lowest rate since January 2021.
Key details: Most of the gain in producer prices was due to an increase in services.
Excluding food, energy and trade services, producer prices rose 0.2% after a 0.1% rise in the prior month. Over the past year, so-called core PPI rose at a 3.4% rate, down from 3.7% in March. This is the lowest in two years.
Big picture: Inflation is moderating at the consumer and producer levels. This is adding to market expectations that the Federal Reserve will refrain from raising interest rates further at the next meeting in mid-June.
Market reaction: Stocks
DJIA,
