April 2023 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) rose 0.4% in April (+0.4% expected). The index for shelter (+0.4%) was the largest contributor to the monthly all-items increase, followed by increases in the index for used cars and trucks (+4.4%) and the index for gasoline (+3.0%). The increase in the gasoline index more than offset declines in other energy component indexes (e.g., energy services: -1.7%), and the energy index rose 0.6% in April. The food index was unchanged in April, as it was in March. The index for food at home fell 0.2% over the month while the index for food away from home rose 0.4%.

The index for all items less food and energy rose 0.4% in April, as it did in March. Indexes which increased in April include shelter, used cars and trucks, motor vehicle insurance, recreation, household furnishings and operations, and personal care. The index for airline fares and the index for new vehicles were among those that decreased over the month.

The all-items index increased 4.9% for the 12 months ending April; this was the smallest 12-month increase since the period ending April 2021. The index for all items less food and energy rose 5.5% over the last 12 months. The energy index decreased 5.1% for the 12 months ending April, and the food index increased 7.7% over the last year. 

Producer Price Index

The Producer Price Index for final demand (PPI-FD) advanced 0.2% in April (+0.3% expected). Final demand prices fell 0.4% in March and were unchanged in February. On an unadjusted basis, the index for final demand moved up 2.3% for the 12 months ended in April.

In April, 80% of the rise in the index for final demand is attributable to a 0.3% increase in prices for final demand services. The index for final demand goods advanced 0.2%.

Prices for final demand less foods, energy, and trade services rose 0.2% in April after inching up 0.1% in March. For the 12 months ended in April, the index for final demand less foods, energy, and trade services increased 3.4%.

Final Demand

Final demand services: Prices for final demand services moved up 0.3% in April, the largest increase since a 0.4% rise in November 2022. Leading the advance in April, the index for final demand services less trade, transportation, and warehousing climbed 0.4%. Margins for final demand trade services increased 0.5%. (Trade indexes measure changes in margins received by wholesalers and retailers.) In contrast, the index for final demand transportation and warehousing services decreased 1.7%.

Product detail: Over one-third of the April advance in the index for final demand services can be traced to a 4.1% rise in prices for portfolio management. The indexes for food and alcohol wholesaling, outpatient care (partial), loan services (partial), hospital inpatient care, and guestroom rental also moved higher. Conversely, prices for long-distance motor carrying declined 2.3%. The indexes for food retailing and for securities brokerage, dealing, and investment advice also fell.

Final demand goods: Prices for final demand goods increased 0.2% in April after falling 1.0% in March. Leading the advance, the index for final demand energy rose 0.8%. Prices for final demand goods less foods and energy moved up 0.2%. In contrast, the index for final demand foods decreased 0.5%.

Product detail: An 8.4% advance in prices for gasoline was a major factor in the April increase in the index for final demand goods. Prices for fresh and dry vegetables, carbon steel scrap, plastic resins and materials, aircraft and aircraft equipment, and fluid power equipment also moved higher. Conversely, the index for chicken eggs dropped 37.9%. Prices for jet fuel and for light motor trucks also declined.

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The not-seasonally adjusted price indexes we track all declined on a MoM basis but were mixed on a YoY basis.

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