Producer Price Index News Release summary

Transmission of material in this release is embargoed until                          USDL 23-0944
8:30 a.m. (ET) Thursday, May 11, 2023

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                          PRODUCER PRICE INDEXES - APRIL 2023


The Producer Price Index for final demand advanced 0.2 percent in April, seasonally adjusted, 
the U.S. Bureau of Labor Statistics reported today. Final demand prices fell 0.4 percent in March 
and were unchanged in February. (See table A.) On an unadjusted basis, the index for final 
demand moved up 2.3 percent for the 12 months ended in April. 

In April, 80 percent of the rise in the index for final demand is attributable to a 0.3-percent 
increase in prices for final demand services. The index for final demand goods advanced 0.2 
percent.

Prices for final demand less foods, energy, and trade services rose 0.2 percent in April after 
inching up 0.1 percent in March. For the 12 months ended in April, the index for final demand 
less foods, energy, and trade services increased 3.4 percent. 

Final Demand

Final demand services: Prices for final demand services moved up 0.3 percent in April, the largest 
increase since a 0.4-percent rise in November 2022. Leading the advance in April, the index for final 
demand services less trade, transportation, and warehousing climbed 0.4 percent. Margins for final 
demand trade services increased 0.5 percent. (Trade indexes measure changes in margins received by 
wholesalers and retailers.) In contrast, the index for final demand transportation and warehousing 
services decreased 1.7 percent. 

Product detail: Over one-third of the April advance in the index for final demand services can be 
traced to a 4.1-percent rise in prices for portfolio management. The indexes for food and alcohol 
wholesaling, outpatient care (partial), loan services (partial), hospital inpatient care, and guestroom 
rental also moved higher. Conversely, prices for long-distance motor carrying declined 2.3 percent. 
The indexes for food retailing and for securities brokerage, dealing, and investment advice also fell. 
(See table 2.)

Final demand goods: Prices for final demand goods increased 0.2 percent in April after falling 1.0 
percent in March. Leading the advance, the index for final demand energy rose 0.8 percent. Prices for 
final demand goods less foods and energy moved up 0.2 percent. In contrast, the index for final 
demand foods decreased 0.5 percent. 

Product detail: An 8.4-percent advance in prices for gasoline was a major factor in the April increase 
in the index for final demand goods. Prices for fresh and dry vegetables, carbon steel scrap, plastic 
resins and materials, aircraft and aircraft equipment, and fluid power equipment also moved higher. 
Conversely, the index for chicken eggs dropped 37.9 percent. Prices for jet fuel and for light motor 
trucks also declined. 

Intermediate Demand by Commodity Type

Within intermediate demand in April, the index for processed goods declined 0.4 percent, prices for 
unprocessed goods rose 1.7 percent, and the index for services advanced 0.7 percent. (See tables B 
and C.)

Processed goods for intermediate demand: Prices for processed goods for intermediate demand 
decreased 0.4 percent in April after moving down 0.9 percent in March. Leading the April decline, 
the index for processed energy goods dropped 2.3 percent. Prices for processed foods and feeds fell 
1.2 percent. In contrast, the index for processed materials less foods and energy increased 0.3 
percent. For the 12 months ended in April, prices for processed goods for intermediate demand 
decreased 3.2 percent, the largest 12-month decline since falling 3.7 percent in July 2020.

Product detail: Over half of the April decrease in prices for processed goods for intermediate 
demand can be traced to a 4.1-percent decline in the index for diesel fuel. Prices for jet fuel, utility 
natural gas, meats, fats and oils, and nitrogenates also fell. Conversely, the index for plastic resins 
and materials rose 2.9 percent. Prices for gasoline and for cold rolled steel sheet and strip also 
advanced.

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate 
demand increased 1.7 percent in April, the largest advance since moving up 4.8 percent in August 
2022. A major factor in the April rise was a 5.2-percent jump in prices for unprocessed energy 
materials. The index for unprocessed nonfood materials less energy moved up 1.8 percent. In 
contrast, prices for unprocessed foodstuffs and feedstuffs decreased 1.4 percent. For the 12 months 
ended in April, the index for unprocessed goods for intermediate demand fell 19.2 percent, the 
largest 12-month decline since dropping 20.1 percent in May 2020.

Product detail: Leading the April advance in prices for unprocessed goods for intermediate demand, 
the index for crude petroleum rose 14.2 percent. Prices for slaughter steers and heifers, corn, carbon 
steel scrap, fresh and dry vegetables, and coal also increased. Conversely, the index for ungraded 
chicken eggs dropped 40.7 percent. Prices for natural gas and for aluminum base scrap also fell.

Services for intermediate demand: The index for services for intermediate demand rose 0.7 percent 
in April after declining 0.2 percent in March. More than three-quarters of the increase can be 
attributed to a 0.8-percent advance in prices for services less trade, transportation, and warehousing 
for intermediate demand. Margins for trade services for intermediate demand moved up 1.5 percent. 
In contrast, the index for transportation and warehousing services for intermediate demand decreased 
0.8 percent. For the 12 months ended in April, prices for services for intermediate demand increased 
4.5 percent. 

Product detail: More than 20 percent of the April advance in the index for services for intermediate 
demand can be traced to a 2.4-percent rise in prices for nonresidential real estate rents. The indexes 
for food and alcohol wholesaling, loan services (partial), staffing services, portfolio management, 
and services related to securities brokerage and dealing (partial) also moved higher. Conversely, 
prices for long-distance motor carrying fell 2.3 percent. The indexes for securities brokerage, dealing, 
and investment advice and for hardware, building materials, and supplies retailing also declined.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: Prices for stage 4 intermediate demand moved up 0.4 percent in 
April after declining 0.2 percent in March. In April, the index for total services inputs to stage 4 
intermediate demand advanced 0.9 percent. In contrast, prices for total goods inputs edged down 0.1 
percent. Increases in the indexes for nonresidential real estate rents, portfolio management, food and 
alcohol wholesaling, gasoline, services related to securities brokerage and dealing (partial), and loan 
services (partial) outweighed falling prices for meats; securities brokerage, dealing, and investment 
advice; and diesel fuel. For the 12 months ended in April, the index for stage 4 intermediate demand 
rose 2.9 percent.

Stage 3 intermediate demand: Prices for stage 3 intermediate demand edged down 0.1 percent in 
April after falling 0.5 percent in March. In April, the index for total goods inputs to stage 3 
intermediate demand decreased 1.0 percent. Conversely, prices for total services inputs advanced 0.7 
percent. Declines in the indexes for ungraded chicken eggs, jet fuel, diesel fuel, slaughter hogs, and 
arrangement of freight and cargo transportation outweighed rising prices for television advertising 
time sales, slaughter cattle, staffing services, and plastic resins and materials. For the 12 months 
ended in April, the index for stage 3 intermediate demand moved down 3.6 percent, the largest 12-
month decrease since falling 3.6 percent in August 2020.

Stage 2 intermediate demand: Prices for stage 2 intermediate demand increased 1.2 percent in 
April, the largest advance since climbing 3.0 percent in August 2022. The indexes for total goods 
inputs and for total services inputs to stage 2 intermediate demand both moved higher, 1.8 percent 
and 0.7 percent, respectively. Increases in the indexes for crude petroleum, loan services (partial), 
food and alcohol wholesaling, staffing services, carbon steel scrap, and janitorial services outweighed 
declines in prices for gas fuels, arrangement of freight and cargo transportation, and prepared animal 
feeds. For the 12 months ended in April, the index for stage 2 intermediate demand fell 5.1 percent, 
the largest 12-month decrease since dropping 5.3 percent in July 2020.

Stage 1 intermediate demand: Prices for stage 1 intermediate demand were unchanged in April 
following two consecutive decreases. In April, a 0.5-percent increase in the index for total services 
inputs to stage 1 intermediate demand offset a 0.5-percent decline in prices for total goods inputs. 
Advances in the indexes for nonresidential real estate rents, services related to securities brokerage 
and dealing (partial), gasoline, fluid power equipment, and portfolio management offset falling prices 
for diesel fuel; utility natural gas; securities, brokerage, dealing, and investment advice; 
transportation of passengers (partial); and nitrogenates. For the 12 months ended in April, the index 
for stage 1 intermediate demand decreased 0.8 percent, the first 12-month decline since moving 
down 0.6 percent in October 2020. 

________________
The Producer Price Index for May 2023 is scheduled to be released on Wednesday, June 14, 2023, 
at 8:30 a.m. (ET).