Producer Prices See Biggest Decline Since 2020John Carney15 May 20259
3:14
Prices paid to U.S. producers of goods and services unexpectedly declined in April, defying predictions that tariffs would reignite inflation.
The producer price index for final demand fell 0.5 percent last month, the Labor Department said on Thursday, the largest decline since April of 2020.
Economists had forecast a 0.2 percent increase for the month. The prior month’s reading was revised up from a decline of 0.4 percent to flat.
Compared with a year ago, the producer price index (PPI) is up 2.4 percent, in line with expectations. In March, the index was up 2.7 percent.
The producer price index is often mistakenly called a measure of wholesale prices, a confusion that goes back to its original name as the wholesale price index. In fact, the index has never been a measure of wholesale prices and the name was changed in 1978.
The PPI for final demand measures the prices that businesses in the U.S. receive for goods, services, and construction sold for personal consumption, capital investment, government purchases, and exports. It excludes import prices, since those are paid to foreign producers, and sales taxes, which are paid to the government.
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https://www.breitbart.com/economy/2025/05/15/ppi-april-2/
