U.S. producer prices decreased considerably during April after a decline the previous month and to their lowest mark since the height of the COVID-19 pandemic in April 2020, according to the latest government data.

The Bureau of Labor Statistics released its monthly Producer Prices Index report on May 15, showing that final demand dropped 0.5% during April 2025, following a 0.4% decline in March and an unchanged February.

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Economists surveyed by the Wall Street Journal had forecasted a monthly increase of 0.3%.

April’s decline was impacted predominantly by prices for final demand services, which declined 0.7%, while the index for final demand goods remained unchanged. Additionally, a large driver in the decline was a 1.7% drop in trade services — a category that measures gross margins for wholesalers and retailers.

On an annual basis, April’s PPI increased by 2.4% — down from 2.7% in March and 3.2% in February.

U.S. Producer Price Index Month-to-Month

source: tradingeconomics.com

The PPI tracks average price shifts at the wholesale level before they reach consumers.

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Core PPI — which excluded volatile food and energy categories — declined by 0.1% during April month-over-month, the first decline since falling 0.8% in April 2020. Core PPI for the 12 months that ended in April rose 2.9%.

U.S. Producer Price Index Year-over-Year

source: tradingeconomics.com

The Bureau of Labor Statistics released its monthly Consumer Price Index summary on May 13, which showed a similar decline in April. The month’s all-items index increased 0.2% in April, following a 0.1% decline in March and a 0.2% gain in February.

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The CPI all-items index increased 2.3% for the 12 months that ended in April.