US Producer Price Index (PPI) index data release today

Consumer Price Index (CPI) and Producer Price Index (PPI) statistics are equally essential to stock market investors. The PPI statistics for April was released by the Bureau of Labour Statistics on May 11, 2023, at 8:30 a.m. Eastern Time.

The Producer Price Index for final demand advanced 0.2 percent in April, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices fell 0.4 percent in March and were unchanged in February.

On an unadjusted basis, the index for final demand moved up 2.3 percent for the 12 months ended in April.

In April, 80 percent of the rise in the index for final demand is attributable to a 0.3-percent increase in prices for final demand services. The index for final demand goods advanced 0.2 percent. Prices for final demand less foods, energy, and trade services rose 0.2 percent in April after inching up 0.1 percent in March. For the 12 months ended in April, the index for final demand less foods, energy, and trade services increased 3.4 percent.

Investors will compare CPI and PPI data to predict the next move by the US Federal Reserve. The Consumer Price Index (CPI) measures the change in prices paid by consumers for goods and services. PPI is a key measure of U.S. inflation that monitors the wholesale prices producers receive for goods and services like gas, food and medical care.

The CPI is influenced by the PPI statistics to some extent. The monthly PPI might indicate whether consumer inflation is increasing or decreasing. As a result, if the PPI rises in a given month, so may consumer prices for goods and services. This is due to the fact that certain manufacturers pass on higher costs to their customers. On the other hand, customers may benefit from a dropping PPI in the form of lower prices.

The PPI, like the CPI, has an impact on the US Fed’s monetary policy and interest rate decisions. To control inflation, the Fed raises interest rates, which reduces demand for goods and services, effectively lowering price rises or inflation.

For March, the Producer Price Index (PPI) advanced only 2.7% year-over-year (y/y), slightly below the 3% analyst consensus forecast and a substantial decline from the 4.9% and 5.9% advances for the one-year periods ended in February and January. From a longer-term perspective, the 2.7% rate showed that inflation has weakened substantially from the 11.7% y/y increase recorded in March of 2022.

On a month-over-month basis (m/m), the headline PPI declined 0.5% in March, the first decline all year and the fastest decline all cycle, with the bulk of the drop attributed to lower prices for gasoline.

A change in the PPI may have an impact on stock prices. Profits may rise or fall as a result of the prices at which producers sell their items. As a result, if PPI data do not meet consensus, stock prices may remain volatile for investors.