US Producer Price Inflation Rose 0.5% m/m and 11.0% y/y in April

US Producer price inflation continues elevated at a rapid pace, a long way from the Central Bank transitory mantra. Annual PPI came in at 11.0% (vs. 11.5% in March) core producer prices were up 8.8% (vs. +9.2% in March). March was the largest increase since data were first calculated in December 2009. Month-over-month the rise was 0.5% in April (consensus +0.5%), and core producer prices rose 0.4% m/m (consensus +0.6%). 

Inflation

April 2022 PPI

The Producer Price Index for final demand increased 0.5 percent in April, seasonally adjusted, the U.S.
Bureau of Labor Statistics reported today. This rise followed advances of 1.6 percent in March and 1.1
percent in February. (See table A.) On an unadjusted basis, final demand prices moved up 11.0 percent
for the 12 months ended in April.

In April, the rise in the index for final demand is primarily attributable to a 1.3-percent advance in prices
for final demand goods. The index for final demand construction increased 4.0 percent, while prices for
final demand services were unchanged.

Prices for final demand less foods, energy, and trade services moved up 0.6 percent in April after
increasing 0.9 percent in March. For the 12 months ended in April, the index for final demand less
foods, energy, and trade services rose 6.9 percent.

Highlights.

  • PPI rose amid supply and labor constraints as inflationary pressure builds, the year-over-year growth rate in PPI rose to a fresh record in March.
  • More than half of the broad-based increase in April can be traced to a 1.0-percent advance in prices for final demand goods less foods and energy.
  • The indexes for final demand energy and for final demand foods also moved higher, 1.7 percent and 1.5 percent, respectively.
  • Index for motor vehicles and equipment advanced 0.8 percent.
  • Prices for diesel fuel, chicken eggs, jet fuel, electric power, and residential natural gas also increased.
  • Conversely, the index for gasoline fell 3.2 percent. Prices for fresh and dry vegetables and for carbon steel scrap also decreased.
  • In April, prices for final demand transportation and warehousing services rose 3.6 percent.
  • In contrast, the indexes for final demand trade services and for final demand services less trade, transportation, and warehousing declined 0.5 percent and 0.1 percent, respectively.
  • Within the index for final demand services in April, prices for truck transportation of freight rose 4.4 percent.
  • The indexes for automotive fuels and lubricants retailing, transportation of passengers (partial), hospital outpatient care, and loan services (partial) also increased. Conversely, margins for health, beauty, and optical goods retailing declined 1.3 percent. The indexes for portfolio management, guestroom rental, hospital inpatient care, and furniture retailing also moved lower.

US PPI May 2022

  • US PPI Final Demand (M/M) Apr: 0.5% (est 0.5%; prev 1.4%; prevR 1.6%)
  • US PPI Ex Food And Energy (M/M) Apr: 0.4% (est 0.6%; prev 1.0%; prevR 1.2%)
  • US PPI Final Demand (Y/Y) Apr: 11.0% (est 10.7%; prev 11.2%; prevR 11.5%)
  • US PPI Ex Energy, Food (Y/Y) Apr: 8.8% (est 8.9%; prev 9.2%)
United States Consumer Price Index (CPI)
US PPI Annually
United States Producer Price Inflation MoM
US PPI Monthly

United States Producer Prices Final Demand Less Foods and Energy

Highlights November 2021

  • PPI Ex Food And Energy (M/M) Jan: 0.8% (est 0.5%; prev 0.5%)
  • PPI Ex Food And Energy (Y/Y) Jan: 8.3% (est 7.9%; prev 8.3%)

 

United States Producer Prices Final Demand Less Foods and Energy YoY
US Core PPI Inflation Annually
United States Producer Prices Final Demand Less Foods and Energy MoM
US Core PPI Inflation Monthly

Source BLS

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