Core producer price increases in the U.S. accelerated to close the first quarter of the year although overall producer price increases slowed from the previous month, according to Reuters. On Thursday, the Labor Department reported that its seasonally adjusted index of producer prices increased by 0.7% in March from the previous month, slowing from a 1.6% monthly gain posted in February. However, the data showed that core producer prices that exclude volatile food and energy costs increase by 0.3% after adding only 0.2% the prior month.
The gain in the PPI was slightly less that economists had anticipated, although the 5.8% yearly increased to March was the largest such gain in 12 months. The increase in the core index was linked to the disruption in global supply of autos due to the earthquake in Japan. A separate poll of economists by Reuters showed that inflation expectations have risen to a peak forecast for 3% inflation in the third quarter, which is up from the 2.5% forecast previously. The poll also showed that expectations for growth both in the first quarter and for all of 2011 have dropped slightly.
Click here to read the story on producer prices from Reuters.
Click here for coverage of the poll of economists from Reuters.