Producer Prices Spike as Gasoline and Services Push Wholesale Inflation Higher
The Producer Price Index for final demand (also known as wholesale prices) rose 1.4% over the month in April, up from the 0.7% increase in March. Over the year, producer prices jumped 6.0%, up from 4.3% in March and the largest 12-month increase since December 2022. Meanwhile, prices for final demand excluding foods, energy and trade services advanced 0.6% over the month in April after ticking up 0.2% in March. Prices for these goods climbed 4.4% from April 2025, the largest yearly increase since February 2023.
Within final demand, prices for services jumped 1.2% in April, the largest monthly increase since March 2022, after inching up 0.2% in March. Meanwhile, prices for goods soared 2.0% in April, after moving up 1.9% in March. Within the final demand services index, margins for machinery and equipment wholesaling rose 3.5%, a major factor in the monthly advance for this index. Within the final demand goods index, prices for gasoline surged 15.6%, accounting for over 40% of the April increase. At the same time, prices for nonferrous metals fell 0.3% from March but were still up 35.6% from April 2025.
Prices for processed goods for intermediate demand rose 2.7% in April, the sixth consecutive increase, after moving up 2.8% in March. Within the index, prices for diesel fuel jumped 12.6%, accounting for nearly a quarter of the April increase, after soaring 42.1% in March. Meanwhile, prices for primary nonferrous metals and secondary nonferrous metals were up 82.1% and 38.1% year-over-year, respectively. Over the year, prices for processed goods for intermediate demand rose 9.4%, the largest annual increase since October 2022.
Meanwhile, prices for unprocessed goods for intermediate demand climbed 4.1% in April, the sixth straight advance, after increasing 1.8% in March. Nearly 75% of the monthly rise was attributed to an 11.3% surge in crude petroleum prices, which are up 61.8% over the year. In contrast, prices for nonferrous scrap fell 4.4% in April but rose 27.9% from April 2025. Over the year, prices for unprocessed goods for intermediate demand soared 20.9% after moving up 12.5% in March.