Updated: 12-May-22 09:38 ET
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Updated: 12-May-22 09:38 ET |
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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% |