Transmission of material in this release is embargoed until                          USDL 20-0920
8:30 a.m. (EDT), Wednesday, May 13, 2020

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                              PRODUCER PRICE INDEXES - APRIL 2020

The Producer Price Index for final demand declined 1.3 percent in April, seasonally adjusted, the 
U.S. Bureau of Labor Statistics reported today. This decrease is the largest since the index began 
in December 2009. Final demand prices fell 0.2 percent in March and 0.6 percent in February. 
(See table A.) On an unadjusted basis, the final demand index moved down 1.2 percent for the 12 
months ended in April, the largest decline since falling 1.3 percent for the 12 months ended 
November 2015.

In April, over 80 percent of the decrease in the final demand index can be traced to a 3.3-percent 
drop in prices for final demand goods. The index for final demand services moved down 0.2 
percent.

Prices for final demand less foods, energy, and trade services fell 0.9 percent in April, the largest 
decline since the index was introduced in September 2013. For the 12 months ended in April, the 
index for final demand less foods, energy, and trade services moved down 0.3 percent, the first 
12-month decrease.

 ______________________________________________________________________________________________
|     Coronavirus (COVID-19) Pandemic Impact on April 2020 Producer Price Index Survey Data    |
|                                                                                              |
|  The Producer Price Index (PPI) response rates for April were consistent with those of March |
|  and February, and no changes in estimation procedures were necessary. Additional information|
|  is available at www.bls.gov/bls/effects-of-covid-19-pandemic-on-bls-price-indexes.htm#PPI.  |                                                    | 
|______________________________________________________________________________________________|

Final Demand

Final demand goods: The index for final demand goods fell 3.3 percent in April, the largest decline 
since the series began in December 2009. Most of the broad-based decrease is attributable to prices 
for final demand energy, which fell 19.0 percent. The indexes for final demand goods less foods and 
energy and for final demand foods moved down 0.4 percent and 0.5 percent, respectively.

Product detail: Two-thirds of the April decrease in the index for final demand goods can be traced to 
prices for gasoline, which dropped 56.6 percent. This is the largest decrease since the series began in 
February 1947. The indexes for jet fuel, diesel fuel, basic organic chemicals, home heating oil, and 
corn also moved lower. In contrast, prices for beef and veal rose 12.6 percent. The indexes for 
distilled and bottled liquor (excluding brandy) and for electric power also increased. (See table 4.)

Final demand services: The index for final demand services fell 0.2 percent in April following a 
0.2-percent advance in March. Leading the decrease, prices for final demand services less trade, 
transportation, and warehousing moved down 0.9 percent. The index for final demand transportation 
and warehousing services declined 3.5 percent. Conversely, margins for final demand trade services 
increased 1.6 percent. (Trade indexes measure changes in margins received by wholesalers and 
retailers.)

Product detail: Leading the April decline in the index for final demand services, prices for portfolio 
management fell 12.0 percent. The indexes for airline passenger services; traveler accommodation 
services; services related to securities brokerage and dealing (partial); hospital outpatient care; and 
apparel, footwear, and accessories retailing also moved lower. In contrast, margins for automotive 
fuels and lubricants retailing rose 41.6 percent. The indexes for inpatient care and for chemicals and 
allied products wholesaling also advanced.

Intermediate Demand by Commodity Type

Within intermediate demand in April, prices for processed goods fell 3.7 percent, the index for 
unprocessed goods dropped 13.7 percent, and prices for services declined 1.6 percent. (See tables B and 
C.)

Processed goods for intermediate demand: The index for processed goods for intermediate demand 
declined 3.7 percent in April, the largest drop since falling 4.1 percent in December 2008. Seventy 
percent of the broad-based April decrease can be attributed to prices for processed energy goods, which 
fell 15.1 percent. The indexes for processed materials less foods and energy and for processed foods and 
feeds moved down 1.5 percent and 0.1 percent, respectively. For the 12 months ended in April, prices for 
processed goods for intermediate demand declined 7.3 percent, the largest decrease since a 7.7-percent 
drop in the 12 months ended October 2015.

Product Detail: A major factor in the April decrease in prices for processed goods for intermediate 
demand was the index for diesel fuel, which dropped 27.8 percent. Prices for gasoline, basic organic 
chemicals, jet fuel, residual fuels, and plastic resins and materials also moved lower. Conversely, the 
index for beef and veal jumped 12.6 percent. Prices for industrial electric power, and for distilled and 
bottled liquor (except brandy) also rose. (See table 5.)

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate 
demand moved down 13.7 percent in April, the largest decline since falling 15.4 percent in October 2008. 
Sixty percent of the broad-based April decrease was the result of a 27.5-percent drop in prices for 
unprocessed energy materials. The indexes for unprocessed foodstuffs and feedstuffs and for unprocessed 
nonfood materials less energy also moved down, 9.7 percent and 4.3 percent, respectively. For the 12 
months ended in April, prices for unprocessed goods for intermediate demand decreased 28.2 percent, the 
largest decline since dropping 31.7 percent in the 12 months ended September 2009.

Product Detail: Nearly half of the April decrease in the index for unprocessed goods for intermediate 
demand can be traced to a 48.9-percent drop in prices for crude petroleum. The indexes for slaughter 
chickens, natural gas, corn, iron and steel scrap, and slaughter barrows and gilts also moved lower. In 
contrast, prices for wastepaper jumped 50.4 percent. The indexes for slaughter cows and bulls and for 
wheat also advanced.

Services for intermediate demand: The index for services for intermediate demand moved down 
1.6 percent in April, the largest decline since the index began December 2009. Leading the decrease, 
prices for services less trade, transportation, and warehousing for intermediate demand fell 2.0 
percent. In addition, the index for transportation and warehousing services for intermediate demand 
moved down 1.4 percent, and margins for trade services for intermediate demand decreased 0.4 
percent. For the 12 months ended in April, the index for services for intermediate demand declined 
1.2 percent, the first 12-month decrease for this index. 

Product Detail: Over a third of the April decrease in the index for services for intermediate demand 
can be traced to prices for portfolio management, which dropped 12.0 percent. The indexes for 
services related to securities brokerage and dealing (partial), business loans (partial), television 
advertising time sales, airline passenger services, and machinery and equipment parts and supplies 
wholesaling also fell. Conversely, margins for automotive fuels and lubricants retailing jumped 41.6 
percent. Prices for temporary help services and for arrangement of freight and cargo transportation 
also increased.   

Intermediate Demand by Production Flow

Stage 4 intermediate demand: The index for stage 4 intermediate demand fell 1.8 percent in 
April, the largest decrease since the index began in December 2009. Prices for total goods inputs 
to stage 4 intermediate demand moved down 1.9 percent, and the index for total services inputs 
declined 1.8 percent. (See table D.) Decreases in the indexes for diesel fuel, portfolio 
management, gasoline, business loans (partial), machinery and equipment parts and supplies 
wholesaling, and services related to securities brokerage and dealing (partial) outweighed 
increases in the indexes for gross rents for retail properties, beef and veal, and chemicals and 
allied products wholesaling. (See table 6.) For the 12 months ended in April, prices for stage 4 
intermediate demand declined a record 1.9 percent. 

Stage 3 intermediate demand: The index for stage 3 intermediate demand decreased a record 5.1 
percent in April. Prices for total goods inputs to stage 3 intermediate demand dropped 9.7 percent, 
and the index for total services inputs moved down 1.1 percent. Falling prices for gasoline, jet fuel, 
slaughter chickens, diesel fuel, basic organic chemicals, and services related to securities brokerage 
and dealing (partial) outweighed increases in the indexes for automotive fuels and lubricants 
retailing, slaughter cows and bulls, and chemicals and allied products wholesaling. For the 12 months 
ended in April, prices for stage 3 intermediate demand declined 8.6 percent, the largest 12-month 
drop since the index entered calculation in December 2009.

Stage 2 intermediate demand: Prices for stage 2 intermediate demand declined 4.7 percent in April, 
the largest decrease since the index entered calculation in December 2009. Prices for total goods 
inputs to stage 2 intermediate demand dropped 9.5 percent, and the index for total services inputs 
moved down 1.7 percent. Falling prices for crude petroleum, natural gas, portfolio management, 
services related to securities brokerage and dealing (partial), basic organic chemicals, and television 
advertising time sales outweighed increases in the indexes for temporary help services, automotive 
fuels and lubricants retailing, and wastepaper. For the 12 months ended in April, prices for stage 2 
intermediate demand declined 10.3 percent, the largest decrease since a 12.0-percent drop in the 12 
months ended September 2015.

Stage 1 intermediate demand: The index for stage 1 intermediate demand fell 4.6 percent in April, 
the largest decrease since the index began in December 2009. Prices for total goods inputs to stage 1 
intermediate demand declined 6.9 percent, and the index for total services inputs moved down 1.8 
percent. Falling prices for diesel fuel, basic organic chemicals, gasoline, iron and steel scrap, crude 
petroleum, and business loans (partial) outweighed increases in the indexes for wastepaper, 
automotive fuels and lubricants retailing, and chemicals and allied products wholesaling. For the 12 
months ended in April, prices for stage 1 intermediate demand declined 8.8 percent, the largest 
decrease since dropping 9.4 percent in the 12 months ended October 2015.

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The Producer Price Index for May 2020 is scheduled to be released on Thursday, June 11, 
2020 at 8:30 a.m. (EDT).