U.S. Producer Prices Rise 1.4% in April

U.S. producer prices increased 1.4% in April on a monthly basis, compared with economist expectations for a 0.5% gain and a prior reading of 0.5%. On a yearly basis, the PPI rose to 6.0%, above forecasts for 4.9% and up from 4.0% the previous month.

Core producer prices, which exclude food and energy, climbed 1.0% for the month against expectations of 0.3% and a prior print of 0.1%. The annual core rate reached 5.2%, topping forecasts for 4.3% and compared with 3.8% previously. The data come as markets monitor inflation trends following earlier reports on consumer prices.

The stronger-than-expected PPI readings indicate building cost pressures in the pipeline that could affect future consumer inflation measures.

China's aggregate financing totaled 15.45 trillion yuan in April, below estimates for 16.08 trillion yuan though above the prior month's 14.83 trillion yuan. New yuan loans stood at 8.59 trillion yuan, missing forecasts for 8.9 trillion yuan and compared with 8.6 trillion yuan previously.

M2 money supply grew 8.6% year-over-year, slightly above the 8.5% estimate and the prior 8.5% reading. M1 money supply expanded 5.0% on the year, below the expected 5.2% and the previous 5.1%. M0 money supply rose 12.2% from a year earlier, down from 12.5% in the prior period.

The below-forecast lending figures suggest tighter credit conditions in the world's second-largest economy even as authorities have sought to support growth. The data were released alongside the U.S. PPI figures on the same day.

The unexpectedly strong U.S. inflation data prompted traders to reassess the path for interest rates. Higher producer costs could feed into consumer prices in coming months if companies pass on the increases. The mixed money supply readings reflect varied liquidity trends across different measures of cash and deposits.