Updated: 12-May-22 09:38 ET

April PPI

Updated: 12-May-22 09:38 ET

Highlights

• The Producer Price Index for final demand increased 0.5% month-over-month in April, as expected, following an upwardly revised 1.6% increase (from 1.4%) in March. Excluding food and energy, the index for final demand jumped 0.4% (Briefing.com consensus 0.6%) following an upwardly revised 1.2% increase (from 1.0%) in March.
• There was a moderation in the year-over-year growth rates. The index for final demand was up 11.0%, versus 11.5% in March, and the index for final demand, excluding food and energy, was up 8.8%, versus 9.5% in March.

Key Factors

• The index for final demand goods increased 1.3% month-over-month, with over half of the advance attributed to a 1.0% increase in prices for final demand goods less foods and energy.
• The index for final demand services was unchanged in April after increasing 1.2% in March.
• The index for processed goods for intermediate demand rose 2.2% month-over-month, led by a 1.4% increase in prices for processed goods less foods and energy.
• The index for unprocessed goods for intermediate demand surged 5.3% month-over-month thanks largely to a 10.3% increase in prices for for unprocessed energy goods.

Big Picture

• The key takeaway from the report is that there was some moderation in the year-over-year changes, but even so, inflation rates for producers remain at intolerably high levels that will pressure profit margins if not passed along to customers.

Category	APR	MAR	FEB	JAN	DEC
Final Demand	0.5%	1.6%	1.1%	1.2%	0.6%
Core (excluding ...)
Food and Energy	0.4%	1.2%	0.5%	0.9%	0.7%
Food, Energy, and Trade	0.6%	0.9%	0.2%	0.8%	0.4%
Final Demand Goods
Total	1.3%	2.4%	2.2%	1.6%	-0.1%
Energy	1.7%	6.4%	7.2%	4.1%	-1.4%
Finished Goods	0.8%	2.1%	2.5%	1.6%	0.1%
Final Demand Services
Total	0.0%	1.2%	0.5%	0.9%	0.9%
Trade	-0.5%	1.9%	1.7%	1.4%	1.9%
Intermediate Demand
Processed	2.2%	2.2%	1.5%	2.1%	-0.1%
Unprocessed	5.3%	1.8%	10.0%	2.9%	-4.8%
Services	0.7%	1.1%	0.2%	0.7%	0.8%