The Producer Price Index (PPI) rose more than expected in April, up 0.5%, easily beating out the consensus estimate of 0.2%. The acceleration was driven by increases in the service sector. Core PPI (less food, energy and trade services) jumped 0.7%. Core, measured on a year-over-year basis, came in just over 2%, up 2.1%. The energy index bounced back, up 0.8% after falling almost 3% in March.
The price of lumber climbed 6.7% from last year. That index is approaching an all-time high that was set back in August 2004. Lumber is a sector that could be negatively impacted by growing tensions between the U.S. and Canada