The U.S. Bureau of Labor Statistics reports that in April 2025, the Producer Price Index (PPI) for final demand fell 0.5%, led by a 0.7% drop in service prices—the largest since 2009—while goods prices were unchanged. Core PPI, excluding food, energy, and trade services, edged down 0.1%, marking its first decline since April 2020. On a 12-month basis, final demand prices rose 2.4%. Intermediate demand showed mixed results: processed goods increased 0.2%, unprocessed goods fell 3.2%, and services were flat. By production stage, prices rose slightly at stage 4 but declined at stages 2 and 3. They write:
The Producer Price Index for final demand fell 0.5 percent in April, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices were unchanged in March and increased 0.2 percent in February. (See table A.) On an unadjusted basis, the index for final demand rose 2.4 percent for the 12 months ended in April.
The April decline in the index for final demand is attributable to prices for final demand services, which decreased 0.7 percent. The index for final demand goods was unchanged.
Prices for final demand less foods, energy, and trade services edged down 0.1 percent in April, the first decline since falling 0.8 percent in April 2020. For the 12 months ended April 2025, the index for final demand less foods, energy, and trade services advanced 2.9 percent.
Final Demand
Final demand services: Prices for final demand services moved down 0.7 percent in April, the largest decline since the index began in December 2009. Over two-thirds of the broad-based decrease can be traced to margins for final demand trade services, which dropped 1.6 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) Prices for final demand services less trade, transportation, and warehousing and for final demand transportation and warehousing services fell 0.3 percent and 0.4 percent, respectively.
Product detail: Over 40 percent of the April decline in the index for final demand services is
attributable to margins for machinery and vehicle wholesaling, which dropped 6.1 percent. The indexes for portfolio management, food and alcohol wholesaling, system software publishing, traveler accommodation services, and airline passenger services also fell. Conversely, prices for outpatient care (partial) advanced 0.3 percent. The indexes for furniture retailing and for inpatient care also moved up. (See table 2.)Final demand goods: Prices for final demand goods were unchanged in April following a 0.9- percent decrease in March. In April, the index for final demand goods less foods and energy
increased 0.4 percent. In contrast, prices for final demand foods and for final demand energy declined 1.0 percent and 0.4 percent, respectively.Product detail: Among final demand goods in April, the index for general purpose machinery and equipment advanced 1.1 percent. Prices for residential electric power, fresh and dry vegetables, non-electronic cigarettes, and utility natural gas also moved up. Conversely, the index for chicken eggs dropped 39.4 percent. Prices for gasoline, gas fuels, diesel fuel, and primary basic organic chemicals also fell.
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