US PPI Jumps 1.4% in April, Cost Pressures Regain Strength!
Producer prices (PPI) in the United States rose 1.4% month-on-month (mom) in April 2026, the largest increase since March 2022. This followed an upwardly revised 0.7% increase in March and far exceeded market expectations of 0.5%, reinforcing signs that upstream price pressures are heating up again.
The increase was led by service prices, which rose 1.2%, also the highest since March 2022. The surge in services was primarily driven by a 3.5% increase in machinery and equipment wholesaling margins, while a number of other components contributed to cost increases, including trucking for freight, fuel and lubricants retailing, and health, beauty, and optical retailing, followed by legal services and several other wholesaling categories.
On the goods side, prices rose more sharply by 2%, driven by a 15.6% surge in gasoline. Jet fuel and diesel prices also rose, along with increases in certain food commodities such as fresh and dried vegetables, and industrial inputs such as industrial chemicals and residual fuels.
For the market, the PPI acceleration increases the risk of second-round effects on consumer inflation through input costs, distribution margins, and energy prices. Attention will be paid to whether the surge in energy and wholesaling margins persists in the coming months, as the resilience of cost pressures will determine how quickly inflation can ease and how monetary policy expectations will adjust. (asd)
Source: Newsmaker.id
