The Producer Price Index for final demand advanced 0.5 percent in April according to the U.S. Bureau of Labor Statistics. Final demand prices edged down 0.1 percent in March and climbed 0.3 percent in February. On an unadjusted basis, the final demand index rose 2.5 percent for the 12 months ended April 2017, the largest increase since moving up 2.8 percent for the 12 months ended February 2012.
In April, almost two-thirds of the advance in the final demand index is attributable to prices for final demand services, which moved up 0.4 percent. The index for final demand goods climbed 0.5 percent.
Prices for final demand less foods, energy and trade services increased 0.7 percent in April. For the 12 months ended in April, the index for final demand less foods, energy and trade services climbed 2.1 percent.
The index for final demand services moved up 0.4 percent in April after edging down 0.1 percent in March. Most of the increase can be traced to prices for final demand services less trade, transportation and warehousing, which advanced 0.8 percent. The index for final demand transportation and warehousing services increased 0.7 percent. Conversely, margins for final demand trade services moved down 0.3 percent.