Producer Price Index News Release summary

Transmission of material in this release is embargoed until                          USDL 24-0943
8:30 a.m. (ET) Tuesday, May 14, 2024

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                                 PRODUCER PRICE INDEXES - APRIL 2024


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.

________________
The Producer Price Index for May 2024 is scheduled to be released on Thursday, June 13, 2024, 
at 8:30 a.m. (ET).