US petchems prices rise 4.7% in April

20 May 2008 14:57  [Source: ICIS news]

WASHINGTON (ICIS news)--US wholesale prices for industrial chemicals rose 4.7% in April from March and plastic resins prices edged up nearly 1% as the country’s overall producer price index (PPI) rose a more modest 0.2%, the government said on Tuesday.

 

The Department of Labor said April’s increase in its producer price index would have been higher but for a slight decline in wholesale prices for energy products.

 

The department said that producer prices - also known as wholesale prices - for finished goods other than food and energy rose 0.4% in April from March, on a seasonally adjusted basis, but that increase was partially offset by a 0.2% decline in energy goods.

 

For example, the department said that seasonally adjusted prices for gasoline fell 4.6% in April compared with March - but without the adjustment for seasonal influence, gasoline prices actually rose 3.2% in April.

 

In industrial chemicals, the 4.7% increase in April from March followed a 1.9% boost in the wholesale price in March and a 0.2% decline in February.

 

With their 0.9% gain in April, producer prices for plastic resins and materials logged a reversal from the 0.5% decline in March. Resins prices were up 0.3% at the wholesale level in February.

 

The department collects producer prices on more than 8,000 products and product groups each month, but it does not provide any explanation for price movements in any commodity or product area.

 

The slight increase in producer prices is seen as adding still more weight against the prospect of further near-term interest rate cuts by the Federal Reserve Board, which lately has indicated increasing concern about rising inflation risks.

 

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By: Joe Kamalick
+1 713 525 2653

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