Wholesale prices rose just 0.2% in April, less than estimate as inflation pressures ease

[mahatmakanejeeves]

2. From the source:

PPI for final demand advances 0.2% in April; services rise 0.3%, goods increase 0.2%
The Producer Price Index for final demand rose 0.2 percent in April. Prices for final demand services increased 0.3 percent, and the index for final demand goods advanced 0.2 percent. Prices for final demand moved up 2.3 percent for the 12 months ended in April.

Economic News Release USDL 23-0944

Producer Price Index News Release summary
Transmission of material in this release is embargoed until 8:30 a.m. (ET) Thursday, May 11, 2023

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PRODUCER PRICE INDEXES - APRIL 2023


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.

Final Demand

Final demand services: Prices for final demand services moved up 0.3 percent in April, the largest increase since a 0.4-percent rise in November 2022. Leading the advance in April, the index for final demand services less trade, transportation, and warehousing climbed 0.4 percent. Margins for final demand trade services increased 0.5 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) In contrast, the index for final demand transportation and warehousing services decreased 1.7 percent.

Product detail: Over one-third of the April advance in the index for final demand services can be traced to a 4.1-percent rise in prices for portfolio management. The indexes for food and alcohol wholesaling, outpatient care (partial), loan services (partial), hospital inpatient care, and guestroom rental also moved higher. Conversely, prices for long-distance motor carrying declined 2.3 percent. The indexes for food retailing and for securities brokerage, dealing, and investment advice also fell. (See table 2.)

Final demand goods: Prices for final demand goods increased 0.2 percent in April after falling 1.0 percent in March. Leading the advance, the index for final demand energy rose 0.8 percent. Prices for final demand goods less foods and energy moved up 0.2 percent. In contrast, the index for final demand foods decreased 0.5 percent.

Product detail: An 8.4-percent advance in prices for gasoline was a major factor in the April increase in the index for final demand goods. Prices for fresh and dry vegetables, carbon steel scrap, plastic resins and materials, aircraft and aircraft equipment, and fluid power equipment also moved higher. Conversely, the index for chicken eggs dropped 37.9 percent. Prices for jet fuel and for light motor trucks also declined.

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The Producer Price Index for May 2023 is scheduled to be released on Wednesday, June 14, 2023, at 8:30 a.m. (ET).