US Producer Prices Tumble In April

A warehouse of processed soybeans ready for shipment at Peterson Farms Seed facility in Fargo, North Dakota.

Dan Koeck | Reuters

U.S. producer prices fell more than expected in April, leading to the largest annual decline since 2015, which could bolster some economists' predictions for a brief period of deflation as the novel coronavirus depresses demand.

The Labor Department said on Wednesday its producer price index for final demand tumbled 1.3% last month after slipping 0.2% in March. In the 12 months through April, the PPI decreased 1.2%. That was the biggest decline since November 2015 and followed a 0.7% increase in March.

Economists polled by Reuters had forecast the PPI falling 0.5% in April and falling 0.2% on a year-on-year basis.

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