U.S. PPI rose 2.2% in April, hitting a 12-month high

    On May 14, data released by the U.S. Bureau of Labor Statistics showed that after adjustment, the U.S. PPI in April increased by 0.5% from the previous month, which was higher than the revised -0.1% in March and exceeded the expected 0.3%; PPI increased by 2.2% year-on-year, slightly higher than the previous value of 2.1%, setting a new high since April 2023, in line with market expectations.
    Excluding highly volatile food and energy, the core PPI in April increased by 2.4% year-on-year, slightly higher than the expected value of 2.3%, consistent with the previous value; the core PPI increased from 0.2% in March to 0.5% month-on-month, exceeding expectations. 0.2%.
    U.S. PPI rose more than expected, raising concerns that inflation remains too stubborn for the Federal Reserve to begin easing policy. Traders have now lowered their expectations for a rate cut, with swaps indicating expectations for a 40 basis point rate cut by the end of the year.

    The media quoted Chris Larkin, managing director of Morgan Stanley's E-Trade trading and investment business, as saying: "The data far exceeded expectations and sticky inflation seems to have become more stubborn. But because last month's data was revised downwards, the actual value of this report The impact may not be as alarming as it initially appears."

    Specifically, the increase in US PPI in April was mainly driven by the surge in service costs, with energy prices being the second important factor. Food prices actually fell during the month.