Producer Price Index for April 2022

The Producer Price Index as released by the BLS, this A.M. 

The Producer Price Index for final demand increased 0.5 percent in April, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This rise followed advances of 1.6 percent in March and 1.1 percent in February. (See table A.) On an unadjusted basis, final demand prices moved up 11.0 percent for the 12 months ended in April.

In April, the rise in the index for final demand is primarily attributable to a 1.3-percent advance in prices for final demand goods. The index for final demand construction increased 4.0 percent, while prices for final demand services were unchanged. 

Prices for final demand less foods, energy, and trade services moved up 0.6 percent in April after increasing 0.9 percent in March. For the 12 months ended in April, the index for final demand less foods, energy, and trade services rose 6.9 percent.

The final demand annual rate slipped from last month, and the month to month slid to lowest since December of 2020, at 0.518%. 

Not everything was even, as processed foods (consumer) jumped 1.36% MoM. Finished consumer energy goods, slipped ever so slightly. Hard to imagine, but it was true. Not so true for May... at this point. 

Kicking out the energy and food sector, everything else rose 1.03% MoM. (1.1% last month.) Better but not truly encouraging. On a year over year basis... this category stands at 6.9% and last month was 7.1%. November through this report reflected this numbers... 7.0%, 7.0%, 6.9%, 6.7%, 7.1%, 6.9%.

Not exactly indicative of any relief in consumer pricing. I think we can expect some more increases in energy for this month and food appears to be heading up for quite a period of time. 

Maybe Tuesday's retail report will shed more light on direction.