April 2022 Consumer and Producer Price Indices (incl. Forest Products)

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Consumer Price Index

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3% in April (+0.2% expected) after rising 1.2% in March. Increases in the indexes for shelter, food, airline fares, and new vehicles were the largest contributors to the seasonally adjusted all-items increase. The food index rose 0.9% over the month as the food at home index rose 1.0%. The energy index declined in April after rising in recent months. The index for gasoline fell 6.1% over the month, offsetting increases in the indexes for natural gas and electricity.

The index for all items less food and energy rose 0.6% in April following a 0.3% advance in March. Along with indexes for shelter, airline fares, and new vehicles, the indexes for medical care, recreation, and household furnishings and operations all increased in April. The indexes for apparel, communication, and used cars and trucks all declined over the month.

The all-items index increased 8.3% for the 12 months ending April, a smaller increase than the 8.5% figure for the period ending in March. The all-items less food and energy index rose 6.2% over the last 12 months. The energy index rose 30.3% over the last year, and the food index increased 9.4%, the largest 12-month increase since the period ending April 1981.

 

Producer Price Index

The Producer Price Index for final demand (PPI-FD) increased 0.5% in April (+0.5% expected). This rise followed advances of 1.6% in March and 1.1% in February. On an unadjusted basis, final demand prices moved up 11.0% for the 12 months ended in April.

In April, the rise in the index for final demand is primarily attributable to a 1.3% advance in prices for final demand goods. The index for final demand construction increased 4.0%, while prices for final demand services were unchanged.

Prices for final demand less foods, energy, and trade services moved up 0.6% in April after increasing 0.9% in March. For the 12 months ended in April, the index for final demand less foods, energy, and trade services rose 6.9%.

Final Demand

Final demand goods: The index for final demand goods moved up 1.3% in April, the fourth consecutive rise. More than half of the broad-based increase in April can be traced to a 1.0% advance in prices for final demand goods less foods and energy. The indexes for final demand energy and for final demand foods also moved higher, 1.7% and 1.5%, respectively.

Product detail: Among prices for final demand goods in April, the index for motor vehicles and equipment advanced 0.8%. Prices for diesel fuel, chicken eggs, jet fuel, electric power, and residential natural gas also increased. Conversely, the index for gasoline fell 3.2%. Prices for fresh and dry vegetables and for carbon steel scrap also decreased.

Final demand services: The index for final demand services was unchanged in April after increasing 1.2% in March. In April, prices for final demand transportation and warehousing services rose 3.6%. In contrast, the indexes for final demand trade services and for final demand services less trade, transportation, and warehousing declined 0.5% and 0.1%, respectively. (Trade indexes measure changes in margins received by wholesalers and retailers.)

Product detail: Within the index for final demand services in April, prices for truck transportation of freight rose 4.4%. The indexes for automotive fuels and lubricants retailing, transportation of passengers (partial), hospital outpatient care, and loan services (partial) also increased. Conversely, margins for health, beauty, and optical goods retailing declined 1.3%. The indexes for portfolio management, guestroom rental, hospital inpatient care, and furniture retailing also moved lower.

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The not-seasonally adjusted price indexes we track were mixed on both MoM and YoY bases.

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The foregoing comments represent the general economic views and analysis of Delphi Advisors, and are provided solely for the purpose of information, instruction and discourse. They do not constitute a solicitation or recommendation regarding any investment.