Wholesale prices increased more than analysts’ expectations in April.
The producer price index (PPI), which measures pipeline costs for raw, intermediate and finished goods, rose 0.5% for the month, the Labor Department’s Bureau of Labor Statistics reported Tuesday. The result was higher than the 0.3% Dow Jones estimate.
On a year-over-year basis, wholesale inflation rose 2.2%, the highest level since April 2023.
Goods inputs rose across all four supply-chain stages in April, the first time goods inputs rose in all four stages since September 2023.
Stage 4 goods inputs, measuring the products purchased by industries primarily producing output sold to final demand, such as RV manufacturers, rose 0.3% in April after a 0.2% decline in March. Overall, Stage 4 intermediate demand rose 2% in March.
Goods inputs for Stage 3 intermediate demand, measuring suppliers to Stage 4 producers such as RV manufacturers, rose 0.4% after a 0.3% decline in March. Overall, year-over-year Stage 3 demand fell 0.1% year-over-year. April marked the 14th consecutive month of year-over-year price decreases.
Goods inputs for Stage 2 intermediate demand, measuring suppliers to Stage 3 suppliers, rose 3.7% after a 2.7% decline in March. Overall, Stage 2 intermediate demand rose 0.5% in April, the first Stage 2 year-over-year increase since January 2023.
Finally, goods inputs for Stage 1 demand rose 0.5% after a 0.7% decrease in March. Overall, Stage 1 intermediate demand rose 0.5% in April, the largest year-over-year increase since March 2023.
