Producer prices rose twice as much as expected in April, another round of inflation data out of the US showed.
PPI rose 0.6% last month, the government said Thursday. The market expected a 0.3% gain. The range, from nearly five-dozen economists, was 0.2% to 0.7%. The ex-food and energy print for April was 0.7%, also considerably higher than the median forecast.
YoY, producer prices rose 6.2%, the most on record (figure below).
“About two-thirds of the April advance in the final demand index can be traced to a 0.6% increase in prices for final demand services,” the BLS said. The final demand goods index rose 0.6% as well.
This just adds to the inflation narrative, but perhaps only at the margins (I suppose you could take “margins” literally as well as figuratively). The CPI shocker is already in. PPI is incremental, but if you were convinced the game changed on Wednesday, Thursday’s data isn’t a surprise.
Meanwhile, jobless claims fell to another pandemic era low. 473,000 Americans filed for unemployment benefits last week, down from an upwardly revised 507,000 the previous week (figure below). The headline print was better than estimates.
The four-week moving average fell to 534,000, also a new pandemic-era nadir.
Claims are down four of the last five weeks (figure below).
You might argue this is evidence against the idea that enhanced unemployment benefits are serving as a disincentive for the jobless to return to work.
If you want to press that issue, you’ll probably need to wait for May’s NFP report, though. April’s epic disappointment is still too fresh and daily reminders that job openings are plentiful serve to perpetuate the notion that workers are stubbornly refusing to accept “good” offers. Remember: Greed is only good if you’re capital.
All in all, Thursday’s batch of data appeared to cement the general narrative.
Inflation pressures are building (the PPI print could presage another hot CPI report next month), and the labor market is on the mend, but perhaps not fast enough and not in a fashion that’s particularly palatable to Republicans and capital more generally.
Draw your own conclusions.
As to greed. Capital is permitted selfishness, labor is expected to be selfless.
The recession was not deep enough for Republicans once they were out of office. The lower classes did not assume the prostate position long enough which helps lower wages. This inflation craze may be an effort to force a double-dip. Austerity spending and tight money would do nicely.
Trying to time ins and outs in a managed market is a fools’ game. Charts or no charts.
Labor is”given” religion and royalty for comfort and compensation.