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14 May 2015
Wholesale prices in the US unexpectedly dropped in April
FXStreet (Mumbai) - The official data released on Thursday showed the inflation measures by the Producer Price Index (PPI) or Wholesale prices dropped in April indicating the inflation could remain low in the short-term as expected by the Fed.
The PPI dropped 0.4% month-on-month in April, following a 0.2% gain seen in March. The fall was higher than the estimated gain of 0.2%. Year-on-year the PPI fell 1.3%, beating the estimate of a 0.8% drop. Core PPI also cooled down to 0.8% in April from 0.9% in March.
At wholesale levels prices have plunged due to drop in the energy prices in H2 2014 and strong US dollar, which has imported deflation.
The PPI dropped 0.4% month-on-month in April, following a 0.2% gain seen in March. The fall was higher than the estimated gain of 0.2%. Year-on-year the PPI fell 1.3%, beating the estimate of a 0.8% drop. Core PPI also cooled down to 0.8% in April from 0.9% in March.
At wholesale levels prices have plunged due to drop in the energy prices in H2 2014 and strong US dollar, which has imported deflation.