US Producer Prices Climb by Most Since 2022

Summary

The video reports that US producer prices rose more than expected in April, with headline PPI up 6% year-over-year and core PPI up 5.2%. Michael McKee breaks down the components, noting broad-based price pressures in goods, services, and transportation. The report implies that inflation remains sticky, which may affect the upcoming PCE data.

• Headline PPI rose 1.4% month-over-month and 6% year-over-year.
• Core PPI (excluding food and energy) rose 1% month-over-month and 5.2% year-over-year.
• Goods prices increased 2% month-over-month, driven by energy and diesel.
• Services prices rose 1.2%, with air transportation and freight costs up sharply.
• Retail and wholesale margins for equipment also contributed to higher inflation.
• The data suggests underlying price pressures remain broad and persistent.
• Analysts had expected some softening due to tariffs peaking, but the data did not show that.
• The report may lead to higher PCE inflation estimates.