Producer Prices Jump 6% Annually, Reinforcing Inflation Concerns

The Producer Price Index for final demand increased 1.4% in April on a seasonally adjusted basis, following gains of 0.7% in March and 0.6% in February, according to the latest data from the U.S. Bureau of Labor Statistics. The April increase marked the largest monthly rise since March 2022, when producer prices climbed 1.7%.

On a year-over-year basis, final demand prices advanced 6% through April, the strongest annual increase since December 2022, when prices rose 6.4%.

Services accounted for much of the monthly increase, with the index for final demand services rising 1.2% in April. The Bureau of Labor Statistics said nearly 60% of the overall monthly gain stemmed from higher service-sector costs. Meanwhile, prices for final demand goods increased 2%, reflecting continued pricing pressure across supply chains and commodity-linked categories.

Underlying inflation measures also strengthened. The index for final demand excluding foods, energy and trade services increased 0.6% in April, matching its largest monthly gain since October 2025. On a 12-month basis, the core measure climbed 4.4%, the highest annual reading since February 2023.

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About Joe Palmisano

Joe Palmisano is editorial director of Connect Money, where he oversees daily coverage of alternative assets, direct investments, financial advisory and the economy. He brings three decades of experience as a financial journalist, analyst and portfolio manager. Before joining Connect Money, Palmisano wrote for The Wall Street Journal, covering foreign exchange, global fixed-income and equity markets. He later served as a senior research analyst and portfolio manager, producing market analysis and managing foreign exchange and U.S. equity portfolios for FX Concepts. His work has also appeared in SFO Magazine and CMT Association publications. Palmisano earned a bachelor’s degree in finance from The American University and holds the Chartered Market Technician (CMT) designation and is a member of the CFA Institute.

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