Producer Prices Up 0.7%

Washington, Dc, May 11, 2007--Producer prices rose 0.7 percent in April, but excluding volatile food and energy costs, prices paid at the factory gate were unchanged, a Labor Department report released on Friday showed.

Analysts were expecting producer prices to rise 0.6 percent and by 0.2 percent when energy and food were excluded.

Overall producer prices rose 3.2 percent from the same month a year ago, while core producer prices gained 1.5 percent from April 2006.

Energy prices gained 3.4 percent, while food prices rose 0.4 percent in April. It was the smallest gain in food prices since November.