May 12, 2022
The seasonally adjusted Producer Price Index for final demand gained 0.5% in April 2022, according to the US Bureau of Labor Statistics. Following gains of 1.6% in March and 1.1% in February 2022. Final demand prices increased 11.0% for the 12 months ended April 2022 on an unadjusted basis.
The increase in the final demand index in April can be attributed to a 1.3% increase in final demand goods prices. Notably, “more than half of the broad-based increase in April can be traced to a 1.0% 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% and 1.5%, respectively,” according to the U.S Bureau of Labor Statistics.
Following a 1.2% increase in March 2022, prices for final demand services was unchanged in April 2022. Notably, in April, prices for final demand transportation and warehousing services increased 3.6%. In contrast, the indexes for final demand trade services and for final demand services less trade, transportation, and warehousing decreased 0.5% and 0.1%, respectively.
The final demand foods index rose 1.5% (March 2.5%) and the index for energy rose 1.7% (March 6.4%). Prices for final demand products, excluding food, energy and trade services increased by 0.6% in April. For the 12 months ended in April, the index for final demand less foods, energy, and trade services increased 6.9% (March 7.1%).
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