Producer Prices Jump 6% Annually, Reinforcing Inflation Concerns

The Producer Price Index for final demand increased 1.4% in April on a seasonally adjusted basis, following gains of 0.7% in March and 0.6% in February, according to the latest data from the U.S. Bureau of Labor Statistics. The April increase marked the largest monthly rise since March 2022, when producer prices climbed 1.7%.

On a year-over-year basis, final demand prices advanced 6% through April, the strongest annual increase since December 2022, when prices rose 6.4%.

Services accounted for much of the monthly increase, with the index for final demand services rising 1.2% in April. The Bureau of Labor Statistics said nearly 60% of the overall monthly gain stemmed from higher service-sector costs. Meanwhile, prices for final demand goods increased 2%, reflecting continued pricing pressure across supply chains and commodity-linked categories.

Underlying inflation measures also strengthened. The index for final demand excluding foods, energy and trade services increased 0.6% in April, matching its largest monthly gain since October 2025. On a 12-month basis, the core measure climbed 4.4%, the highest annual reading since February 2023.