By Mucahithan Avcioglu

ISTANBUL (AA) - US producer prices unexpectedly fell in April, with the Producer Price Index (PPI) declining 0.5% month-on-month, according to data released Thursday by the Bureau of Labor Statistics.

The decline came in contrast to market expectations of a 0.2% increase. March’s figure was revised up to show no change from the previous month.

Prices for final demand goods were unchanged in April, following a 0.9% decrease in March.

The margins for final demand trade services fell 1.6%, accounting for more than two-thirds of the overall decline.

"Prices for final demand services less trade, transportation, and warehousing and for final demand transportation and warehousing services fell 0.3% and 0.4%, respectively," the report said.

On an annual basis, producer prices rose by 2.4% in April, landing slightly below market estimates of a 2.5% rise.

Core PPI, which excludes volatile food and energy prices, declined 0.4% month-on-month in April —sharply diverging from forecasts of a 0.3% gain.

On an annual basis, PPI increased 3.1% in April, matching the market estimates.