US Producer Price Index for Final Demand Increases 1.4% in April

On Wednesday, the US Bureau of Labor Statistics (BLS) reported that the Producer Price Index (PPI) for final demand rose 1.4% in April on a seasonally adjusted basis. This followed increases of 0.7% in March and 0.6% in February.

On an unadjusted basis, the index increased 6.0% over the 12 months ending in April—the largest annual increase since December 2022 (6.4%).

The monthly increase was driven by a 2.0% rise in prices for final demand goods, while prices for final demand services increased 1.2%. The BLS said nearly 60% of the increase in final demand prices was attributable to higher service prices.

The index for final demand less foods, energy, and trade services increased 0.6%. Year-over-year, this measure rose 4.4%—the largest annual increase since February 2023 (4.5%).