Producer Price Index: April Headline at 2.3%, Lowest Since January 2021
This article was originally written by Doug Short. From 2016-2022, it was improved upon and updated by Jill Mislinski. Starting in January 2023, AP Charts pages will be maintained by Jennifer Nash at Advisor Perspectives/VettaFi.
This morning's release of the April Producer Price Index (PPI) for final demand was up 0.2% from March, up from last month's 0.4% decrease and lower than the expected 0.3% increase in prices. Core PPI came in as expected showing a 0.2% increase in prices from March, up from last month's 0.0% change in prices.
Here is the summary of the news release on final demand:
The Producer Price Index for final demand advanced 0.2 percent in April, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices fell 0.4 percent in March and were unchanged in February. (See table A.) On an unadjusted basis, the index for final demand moved up 2.3 percent for the 12 months ended in April.
In April, 80 percent of the rise in the index for final demand is attributable to a 0.3-percent increase in prices for final demand services. The index for final demand goods advanced 0.2 percent.
Prices for final demand less foods, energy, and trade services rose 0.2 percent in April after inching up 0.1 percent in March. For the 12 months ended in April, the index for final demand less foods, energy, and trade services increased 3.4 percent. [More...]
Below is a chart of the historical series with a callout to the most recent 12 months. On a non-seasonally adjusted basis, this month's headline PPI increased 2.3% year-over-year, down from last month's 2.7% YoY increase and below the forecast of 2.4%. This is the smallest 12-month change since January 2021 and the 10th consecutive month headline PPI has slowed. Core PPI increased 3.2% year-over-year, down from last month's 3.4% YoY increase and below the forecast of 2.4%. This is the smallest 12-month change since April 2021 and the 13th consecutive month core PPI has slowed.