The BLS released the PPI report this morning and it’s red hot for inflation.
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.
It definitely looks like inflation is remaining stubbornly high. The CPI report will be out tomorrow so stay tuned, stay profitable and stay solvent…