May 13, 2026
According to the U.S. Bureau of Labor Statistics, the Producer Price Index (PPI) for final demand increased 1.4% in April, seasonally adjusted. This follows a 0.7% rise in March and a 0.6% increase in February. The April advance marks the largest monthly gain since March 2022. On an unadjusted basis, the index for final demand rose 6.0% over the 12 months ended April, the largest 12-month increase since December 2022.
Nearly 60% of April’s overall gain was driven by a 1.2% increase in final demand services, while final demand goods prices rose 2.0%.
Excluding foods, energy, and trade services, the PPI for final demand increased 0.6%, matching the pace last seen in October 2025. Over the past year, this index has advanced 4.4%, the largest 12-month rise since February 2023.
Final demand goods
Prices for final demand goods increased 2.0%, following a 1.9% rise in March. More than three-quarters of the gain came from a 7.8% jump in energy prices. Goods excluding food and energy rose 0.7%, and food prices increased 0.2%.
A notable driver was a 15.6% surge in gasoline prices, accounting for more than 40% of the overall goods increase. Other contributors included higher prices for jet fuel, diesel fuel, fresh and dry vegetables, industrial chemicals, and residual fuels. Offsetting movements included a 49.7% decline in chicken eggs, along with lower prices for nonferrous scrap and residential natural gas.
Final demand services
The index for final demand services rose 1.2%, the largest increase since March 2022. About two-thirds of the gain came from a 2.7% jump in trade services margins. Transportation and warehousing services rose 5.0%, and services excluding trade, transportation, and warehousing edged up 0.1%.
A 3.5% increase in margins for machinery and equipment wholesaling was a major factor in the overall advance. Additional contributors included gains in truck transportation of freight; fuels and lubricants retailing; health, beauty, and optical goods retailing; chemicals and allied products wholesaling; and legal services. Declines were recorded in portfolio management, food retailing margins, and margins for metals, minerals, and ores wholesaling.
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