U.S. producer prices jump 1.4% in April

The U.S. Bureau of Labor Statistics said on Wednesday, May 13, that its Producer Price Index for final demand rose 1.4% in April, the largest monthly increase since March 2022. The report followed a Labor Department consumer inflation release a day earlier showing the Consumer Price Index rose 0.6% in April after a 0.9% increase in March. Together, the reports showed price pressures remained broad in the early spring, with producer inflation running ahead of the consumer measure on a monthly basis. The April PPI report also showed prices received by producers were up 6.0% from a year earlier, the fastest annual increase since December 2022. ### Which parts of the producer inflation report drove the jump? Final demand goods prices rose 2.0% in April and final demand services increased 1.2%, according to the BLS release. The agency said nearly 60% of the monthly increase in the overall index came from services, while two-thirds of the gain in services was tied to a 2.7% jump in trade margins, which measure changes in margins received by wholesalers and retailers. (bls.gov) Energy prices were a major factor on the goods side. The BLS said final demand energy prices jumped 7.8% in April, with gasoline up 15.6%, diesel fuel up 12.6% and crude petroleum up 11.3%. Core goods, which exclude food and energy, still rose 0.7%, showing price increases were not limited to fuel. Transportation and warehousing also moved higher. The BLS said prices for transportation and warehousing services in final demand increased 5.0% in April, while truck transportation of freight rose 8.1% and airline passenger services increased 1.0%. (bls.gov) ### How did this compare with the consumer inflation report? The Labor Department said on Tuesday, May 12, that the Consumer Price Index for All Urban Consumers rose 0.6% in April on a seasonally adjusted basis. (bls.gov) The 12-month CPI increase was 3.8%, and the core CPI measure that excludes food and energy rose 0.4% in the month and 2.8% from a year earlier. Energy also played a large role in the consumer report. The BLS said the energy index rose 3.8% in April and accounted for more than 40% of the monthly increase in all-items CPI, while shelter rose 0.6% and food increased 0.5%. ### Why do investors watch producer prices so closely? The Federal Reserve targets inflation measured by a separate gauge, the personal consumption expenditures price index, but investors use the producer report to track pipeline price pressures and to estimate components that feed into other inflation measures. (bls.gov) CME Group says its FedWatch tool uses 30-day fed funds futures prices to reflect market views on the likely path of Federal Reserve policy. The April producer report matters because it showed broad increases beyond a single category. The BLS said processed goods for intermediate demand rose 2.7%, unprocessed goods increased 4.1% and services for intermediate demand gained 1.1%, with transportation and warehousing services for intermediate demand up 3.7%. ### What does the annual picture show? The 12-month increase in final demand prices accelerated to 6.0% in April from lower readings earlier this year, according to the BLS. (cmegroup.com) The agency said that was the largest annual rise since the index increased 6.4% in December 2022. April’s monthly gain also extended a run of firm readings. The BLS said final demand prices had risen 0.7% in March and 0.6% in February before the 1.4% increase in April. (bls.gov) ### When is the next inflation checkpoint? The Bureau of Labor Statistics said the next Producer Price Index report, covering May 2026, is scheduled for Thursday, June 11, 2026, at 8:30 a.m. (bls.gov) Eastern Time. The CPI report for May will provide the next consumer inflation update before then, following the April CPI release published on May 12.