US Producer Prices Unexpectedly Fall

2025-05-15 12:33 By Joana Ferreira 1 min. read

US producer prices fell by 0.5% in April 2025, following a revised flat reading in March and defying market expectations of a 0.2% increase.

This was the first decline in the PPI since October 2023 and the sharpest drop since April 2020, during the early aftermath of the COVID-19 outbreak.

The decline was largely driven by a 0.7% fall in service costs, the largest since data collection began in December 2009, primarily due to a 1.6% decrease in margins for trade services, suggesting businesses may be absorbing some of the impact from higher tariffs.

Prices for final demand services excluding trade, transportation, and warehousing fell 0.3%, while transportation and warehousing services dropped 0.4%.

Meanwhile, goods prices were flat in April, as a 1.0% decrease in food costs and a 0.4% decline in energy prices offset other components.

On a yearly basis, the PPI inflation eased to 2.4% in April, the lowest since September 2024 and slightly below forecasts of 2.5%.



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