April 2024 Producer Price Index

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The Producer Price Index for final demand rose 0.5 percent in April, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices declined 0.1 percent in March and advanced 0.6 percent in February. (See table A.) On an unadjusted basis, the index for final demand moved up 2.2 percent for the 12 months ended in April, the largest increase since rising 2.3 percent for the 12 months ended April 2023.

Nearly three-quarters of the April advance in final demand prices is attributable to a 0.6-percent increase in the index for final demand services. Prices for final demand goods moved up 0.4 percent.

The index for final demand less foods, energy, and trade services moved up 0.4 percent in April after rising 0.2 percent in March. For the 12 months ended in April, prices for final demand less foods, energy, and trade services increased 3.1 percent, the largest advance since climbing 3.4 percent for the 12 months ended April 2023.

Final Demand

Final demand services: The index for final demand services moved up 0.6 percent in April, the largest rise since jumping 0.8 percent in July 2023. Seventy percent of the April increase can be traced to prices for final demand services less trade, transportation, and warehousing, which advanced 0.6 percent. Margins for final demand trade services rose 0.8 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) In contrast, prices for final demand transportation and warehousing services decreased 0.6 percent.

Product detail: A 3.9-percent advance in the index for portfolio management was a major factor in the April increase in prices for final demand services. The indexes for machinery and equipment wholesaling, residential real estate services (partial), automobiles retailing (partial), guestroom rental, and truck transportation of freight also moved higher. Conversely, prices for airline passenger services declined 3.8 percent. The indexes for fuels and lubricants retailing and for gaming receipts (partial) also fell. (See table 2.)

Final demand goods: Prices for final demand goods rose 0.4 percent in April after decreasing 0.2 percent in March. Most of the advance is attributable to the index for final demand energy, which moved up 2.0 percent. Prices for final demand goods less foods and energy increased 0.3 percent. In contrast, the index for final demand foods declined 0.7 percent.

Product detail: Nearly three-quarters of the April advance in the index for final demand goods can be traced to a 5.4-percent increase in gasoline prices. The indexes for diesel fuel; chicken eggs; electric power; nonferrous metals; and canned, cooked, smoked, or prepared poultry also rose. Conversely, prices for fresh and dry vegetables fell 18.7 percent. The indexes for residential natural gas and for steel mill products also declined.

Intermediate Demand by Commodity Type

Within intermediate demand in April, prices for processed goods rose 0.6 percent, the index for unprocessed goods increased 3.2 percent, and prices for services edged up 0.1 percent. (See tables B and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate demand advanced 0.6 percent in April following a 0.5-percent decrease in March. Leading the increase, prices for processed energy goods rose 1.6 percent. The index for processed materials less foods and energy moved up 0.4 percent. In contrast, prices for processed foods and feeds declined 0.2 percent. For the 12 months ended in April, the index for processed goods for intermediate demand decreased 0.5 percent.

Product detail: A quarter of the April advance in the index for processed goods for intermediate demand is attributable to a 3.0-percent increase in prices for diesel fuel. The indexes for gasoline, primary basic organic chemicals, commercial electric power, ethanol, and confectionery materials also moved higher. Conversely, prices for beef and veal fell 5.9 percent. The indexes for iron and steel and for utility natural gas also decreased.

Unprocessed goods for intermediate demand: In April, the index for unprocessed goods for intermediate demand moved up 3.2 percent, the largest advance since rising 4.6 percent in August 2022. Leading the April increase, prices for unprocessed energy materials jumped 8.2 percent. The index for unprocessed nonfood materials less energy advanced 1.0 percent. In contrast, prices for unprocessed foodstuffs and feedstuffs fell 0.2 percent. For the 12 months ended in April, the index for unprocessed goods for intermediate demand declined 4.6 percent.

Product detail: Leading the April rise in prices for unprocessed goods for intermediate demand, the index for crude petroleum jumped 10.6 percent. Prices for slaughter hogs, nonferrous metals, iron and steel scrap, slaughter cows and bulls, and strawberries also moved higher. Conversely, the index for slaughter steers and heifers decreased 5.3 percent. Prices for raw cotton and for natural gas also fell.

Services for intermediate demand: Prices for services for intermediate demand edged up 0.1 percent in April after rising 0.2 percent in March. Leading the April increase, the index for services less trade, transportation, and warehousing for intermediate demand advanced 0.2 percent. Prices for transportation and warehousing services for intermediate demand moved up 0.4 percent. In contrast, the index for trade services for intermediate demand declined 0.5 percent. For the 12 months ended in April, prices for services for intermediate demand rose 3.0 percent.

Product detail: Over 70 percent of the April increase in the index for services for intermediate demand can be traced to a 3.2-percent advance in prices for management, scientific, and technical consulting services. The indexes for portfolio management, machinery and equipment parts and supplies wholesaling, gross rents for retail properties, and arrangement of freight and cargo transportation also moved higher. Conversely, margins for metals, minerals, and ores wholesaling declined 3.1 percent. The indexes for staffing services, airline passenger services, and fuels and lubricants retailing also decreased.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: Prices for stage 4 intermediate demand rose 0.2 percent in April, the sixth consecutive increase. In April, the index for total goods inputs to stage 4 intermediate demand advanced 0.3 percent, and prices for total services inputs moved up 0.1 percent. (See table D.) Increases in the indexes for gasoline, portfolio management, machinery and equipment parts and supplies wholesaling, gross rents for retail properties, commercial electric power, and architectural and engineering services outweighed declines in the indexes for metals, minerals, and ores wholesaling; iron and steel; and staffing services. For the 12 months ended in April, prices for stage 4 intermediate demand rose 2.0 percent.

Stage 3 intermediate demand: The index for stage 3 intermediate demand advanced 0.2 percent in April after edging down 0.1 percent in March. In April, prices for total goods inputs to stage 3 intermediate demand increased 0.4 percent, while the index for total services inputs was unchanged. Rising prices for slaughter hogs, diesel fuel, primary basic organic chemicals, gasoline, cable network advertising time sales, and transportation of freight and mail outweighed declines in the indexes for slaughter chickens, iron and steel, and staffing services. For the 12 months ended in April, prices for stage 3 intermediate demand inched down 0.1 percent.

Stage 2 intermediate demand: The index for stage 2 intermediate demand advanced 1.5 percent in April, the largest increase since rising 1.9 percent in July 2023. In April, prices for total goods inputs to stage 2 intermediate demand jumped 3.7 percent, and the index for total services inputs edged up 0.1 percent. Higher prices for crude petroleum, liquefied petroleum gas, primary basic organic chemicals, ethanol, iron and steel scrap, and pipeline transportation of natural gas outweighed decreases in the indexes for fuels and lubricants retailing, staffing services, and steel mill products. For the 12 months ended in April, prices for stage 2 intermediate demand rose 0.5 percent, the first increase since advancing 5.5 percent for the 12 months ended January 2023.

Stage 1 intermediate demand: The index for stage 1 intermediate demand moved up 0.2 percent in April following a 0.2-percent decrease in March. In April, prices for total goods inputs to stage 1 intermediate demand advanced 0.5 percent. In contrast, the index for total services inputs fell 0.2 percent. Rising prices for diesel fuel, primary basic organic chemicals, portfolio management, gasoline, guestroom rental, and ethanol outweighed declines in the indexes for airline passenger services; steel mill products; and metals, minerals, and ores wholesaling. For the 12 months ended in April, prices for stage 1 intermediate demand increased 0.5 percent, the largest advance since moving up 0.7 percent for the 12 months ended March 2023.