US Producer Prices Fell Unexpectedly in April as Margins Shrank

Prices paid to US producers unexpectedly declined in April by the most in five years, largely reflecting a slump in margins, suggesting companies are absorbing some of the hit from higher tariffs.

The 0.5% decrease in the producer price index followed no change in March, Bureau of Labor Statistics data showed Thursday. The median forecast in a Bloomberg survey of economists called for a 0.2% gain. Excluding food and energy, the PPI declined 0.4% — the most since 2015.

Stripping out food, energy and trade, a less-volatile measure favored by many economists, prices fell 0.1%, the first decline in five ...