Producer prices rose in April at the fastest annual pace on record as the reopening of the U.S. economy from COVID-19 lockdowns continued to gain momentum.
The producer price index for final demand last month rose at a 6.2% annual pace, quickening from March’s 4.2% increase, the Labor Department said Thursday. The April reading made for the biggest annual jump since recordkeeping began in November 2010. On a monthly basis, prices jumped 0.6%, slowing from last month’s 1.0% increase.
The annual data has a “base effects” skew due to the price decline that occurred at the onset of the pandemic.
Half of the increase in April was due to the 0.5% rise in the index for final demand services less trade, transportation, and warehousing. Meanwhile, prices for final demand goods climbed 0.6%, slowing from the 1.7% advance last month.
