April 2022 Producer Price Index

Historical release narrative reproduced from the official public-domain source. Statistical tables, standard technical appendices, administrative material and attendance rosters are omitted; formatting is adapted for reading. Figures retain the release's historical context and may have been revised. Consult the linked source for the complete document.

The Producer Price Index for final demand increased 0.5 percent in April, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This rise followed advances of 1.6 percent in March and 1.1 percent in February. (See table A.) On an unadjusted basis, final demand prices moved up 11.0 percent for the 12 months ended in April.

In April, the rise in the index for final demand is primarily attributable to a 1.3-percent advance in prices for final demand goods. The index for final demand construction increased 4.0 percent, while prices for final demand services were unchanged.

Prices for final demand less foods, energy, and trade services moved up 0.6 percent in April after increasing 0.9 percent in March. For the 12 months ended in April, the index for final demand less foods, energy, and trade services rose 6.9 percent.

Final Demand

Final demand goods: The index for final demand goods moved up 1.3 percent in April, the fourth consecutive rise. More than half of the broad-based increase in April can be traced to a 1.0-percent 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 percent and 1.5 percent, respectively.

Product detail: Among prices for final demand goods in April, the index for motor vehicles and equipment advanced 0.8 percent. Prices for diesel fuel, chicken eggs, jet fuel, electric power, and residential natural gas also increased. Conversely, the index for gasoline fell 3.2 percent. Prices for fresh and dry vegetables and for carbon steel scrap also decreased. (See table 2.)

Final demand services: The index for final demand services was unchanged in April after increasing 1.2 percent in March. In April, prices for final demand transportation and warehousing services rose 3.6 percent. In contrast, the indexes for final demand trade services and for final demand services less trade, transportation, and warehousing declined 0.5 percent and 0.1 percent, respectively. (Trade indexes measure changes in margins received by wholesalers and retailers.)

Product detail: Within the index for final demand services in April, prices for truck transportation of freight rose 4.4 percent. The indexes for automotive fuels and lubricants retailing, transportation of passengers (partial), hospital outpatient care, and loan services (partial) also increased. Conversely, margins for health, beauty, and optical goods retailing declined 1.3 percent. The indexes for portfolio management, guestroom rental, hospital inpatient care, and furniture retailing also moved lower.

Intermediate Demand by Commodity Type

Within intermediate demand in April, prices for processed goods increased 2.2 percent, the index for unprocessed goods advanced 5.3 percent, and prices for services moved up 0.7 percent. (See tables B and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate demand climbed 2.2 percent in April, the fourth consecutive rise. In April, a 1.4-percent advance in prices for processed goods less foods and energy led the broad-based increase. The indexes for processed energy goods and for processed foods and feeds also moved higher, 4.5 percent and 2.9 percent, respectively. For the 12 months ended in April, prices for processed goods for intermediate demand jumped 21.9 percent.

Product detail: Within the index for processed goods for intermediate demand in April, prices for industrial chemicals advanced 1.8 percent. The indexes for diesel fuel, utility natural gas, jet fuel, plastic resins and materials, and cold rolled steel sheet and strip also increased. In contrast, prices for softwood lumber fell 15.6 percent. The indexes for gasoline and for beef and veal also declined.

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate demand rose 5.3 percent in April, the fourth consecutive advance. In April, over 80 percent of the broad-based increase can be traced to prices for unprocessed energy goods, which climbed 10.3 percent. The indexes for unprocessed foodstuffs and feedstuffs and for unprocessed nonfood materials less energy also moved higher, 2.5 percent and 0.5 percent, respectively. For the 12 months ended in April, prices for unprocessed goods for intermediate demand jumped 48.1 percent, the largest advance since rising 49.6 percent for the 12 months ended November 2021.

Product detail: Half of the April increase in the index for unprocessed goods for intermediate demand is attributable to a 16.9-percent jump in natural gas prices. The indexes for crude petroleum, ungraded chicken eggs, coal, grains, and raw cotton also advanced. Conversely, raw milk prices decreased 6.3 percent. The indexes for carbon steel scrap and for hay and hayseeds also moved lower.

Services for intermediate demand: The index for services for intermediate demand moved up 0.7 percent in April, the sixth consecutive increase. Over half of the April advance can be attributed to a 0.6-percent rise in prices for services less trade, transportation, and warehousing for intermediate demand. The index for transportation and warehousing services for intermediate demand increased 2.5 percent. In contrast, prices for trade services for intermediate demand decreased 0.1 percent. For the 12 months ended in April, the index for services for intermediate demand advanced 7.5 percent.

Product detail: One-third of the April rise in the index for services for intermediate demand can be traced to a 4.3-percent advance in prices for nonresidential real estate rents. The indexes for truck transportation of freight, freight forwarding, loan services (partial), services related to securities brokerage and dealing (partial), and paper and plastics products wholesaling also moved higher. Conversely, margins for machinery and equipment parts and supplies wholesaling fell 0.4 percent. The indexes for securities brokerage, dealing, and investment advice and for arrangement of freight and cargo transportation also declined.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: Prices for stage 4 intermediate demand advanced 0.9 percent in April following a 1.0-percent rise in March. In April, the index for total goods inputs to stage 4 intermediate demand increased 1.3 percent, and prices for total services inputs moved up 0.5 percent. (See table D.) Advances in the indexes for diesel fuel; nonresidential real estate rents; transportation of freight and mail; structural, architectural, and pre-engineered metal products; services related to securities brokerage and dealing (partial); and metal containers outweighed decreases in prices for portfolio management; softwood lumber; and securities brokerage, dealing, and investment advice. For the 12 months ended in April, the index for stage 4 intermediate demand jumped 11.7 percent.

Stage 3 intermediate demand: The index for stage 3 intermediate demand rose 2.2 percent in April, following a 2.9-percent advance in March. In April, prices for total goods inputs to stage 3 intermediate demand moved up 3.4 percent, and the index for total services inputs increased 0.9 percent. Advances in prices for diesel fuel, ungraded chicken eggs, jet fuel, slaughter poultry, plastic resins and materials, and freight forwarding outweighed decreases in the indexes for raw milk, softwood lumber, and arrangement of freight and cargo transportation. For the 12 months ended in April, prices for stage 3 intermediate demand jumped 19.1 percent.

Stage 2 intermediate demand: The index for stage 2 intermediate demand moved up 2.8 percent in April, the fourth consecutive increase. In April, prices for total goods inputs to stage 2 intermediate demand climbed 4.9 percent, and the index for total services inputs rose 0.6 percent. Advances in prices for natural gas, crude petroleum, coal, loan services (partial), freight forwarding, and industrial chemicals outweighed decreases in the indexes for carbon steel scrap, softwood lumber, and arrangement of freight and cargo transportation. For the 12 months ended in April, prices for stage 2 intermediate demand jumped 23.5 percent.

Stage 1 intermediate demand: The index for stage 1 intermediate demand increased 1.6 percent in April after advancing 2.5 percent in March. In April, prices for total good inputs to stage 1 intermediate demand moved up 2.5 percent, and the index for total services inputs rose 0.6 percent. Advances in the indexes for diesel fuel, nonresidential real estate rents, utility natural gas, industrial chemicals, grains, and truck transportation of freight outweighed decreasing prices for guestroom rental; securities brokerage, dealing, and investment advice; and carbon steel scrap. For the 12 months ended in April, the index for stage 1 intermediate demand jumped 16.8 percent.