US producer prices jump 6%

The U.S. Bureau of Labor Statistics said on May 13 that its producer price index for final demand rose 1.4% in April from March, the biggest monthly increase since March 2022. On an unadjusted basis, producer prices were up 6.0% from a year earlier, the largest 12-month increase since December 2022. The report landed one day after a separate consumer inflation reading for April and added another data point for companies, investors and Federal Reserve officials tracking price pressure across the economy. Economists polled by Reuters had expected a 0.5% monthly increase, according to Reuters reporting. ### Which parts of the index drove the April increase? BLS said nearly 60% of April's increase in final demand prices came from a 1.2% rise in services. Trade services, which measure changes in margins received by wholesalers and retailers, increased 2.7%, while transportation and warehousing services rose 5.0%. (bls.gov) Final demand goods rose 2.0% in April after a 1.9% increase in March. BLS said more than three-quarters of that gain was tied to a 7.8% increase in energy prices, including a 15.6% jump in gasoline, a 12.6% rise in diesel fuel and an 11.3% increase in crude petroleum. ### How broad was the price pressure beyond energy? (bls.gov) The index for final demand less foods, energy and trade services rose 0.6% in April, matching its largest monthly increase since October 2025. Over 12 months, that measure increased 4.4%, the most since February 2023. (bls.gov) Product-level data showed price gains outside fuel as well. BLS said industrial chemicals rose 4.4% in April, lumber increased 7.2%, steel mill products gained 3.8% and truck transportation of freight rose 8.1%. Motor vehicle prices increased 0.3%, while pharmaceutical preparations rose 0.1%. ### How did April compare with March and with forecasts? (fraser.stlouisfed.org) March producer prices were revised to show a 0.7% increase, up from the previously reported 0.5%, after a 0.6% rise in February, BLS said. The annual rate accelerated from 4.0% in March to 6.0% in April. Reuters reported that economists it polled had expected a 0.5% monthly increase in April. (bls.gov) CNBC separately reported the same 0.5% consensus estimate from Dow Jones. ### Why do companies and investors watch this report? The producer price index tracks prices received by domestic producers for their output and is used as one measure of pipeline inflation before costs reach consumers. (bls.gov) BLS publishes the report monthly as part of its inflation data calendar. Reuters said the April reading added to concerns about persistent inflation pressure, while Associated Press reported that rising wholesale costs can increase pressure on companies to pass along higher prices to customers. (money.usnews.com) Those characterizations were made by those news organizations, not by BLS. (bls.gov) ### What happens next for the Fed and the data calendar? The Federal Reserve's next scheduled policy meeting is set for June 16-17, according to the central bank's 2026 calendar. The Fed's meeting calendars page says policy statements and minutes are linked through those calendars, and a press conference is scheduled for June 17. (money.usnews.com) BLS said the April producer price figures are preliminary. The agency's latest-numbers page and monthly news release will carry any revisions alongside the next scheduled PPI update. (bls.gov) (federalreserve.gov)