"U.S. PPI jumped 6% year-over-year in April 2026, the biggest gain since December 2022, driven largely by energy costs. Gasoline prices climbed 15.6%, and energy goods rose 7.8%, both tied directly to Strait of Hormuz disruptions from the U.S.-Israel-Iran war. Trump told reporters that Americans' financial hardships are not even a little bit a factor in his push for a nuclear deal with Iran."
"The final demand PPI rose 1.4% on a seasonally adjusted basis. That is the biggest one-month advance since March 2022, when the index climbed 1.7%. The reading follows gains of 0.7% in March and 0.6% in February. Energy prices drove the headline beat. Final demand goods rose 2.0% for the month, with the energy component up 7.8%."
"Nearly 60% of the monthly advance came from services. Final demand services rose 1.2%, the most since March 2022. Transportation and warehousing costs jumped 5.0%. Machinery and equipment wholesaling margins gained 3.5%. Core PPI, which strips out foods, energy, and trade services, rose 0.6% for the month and 4.4% year-over-year. That annual core reading is the highest since February 2023."
"The primary factor behind the energy shock is the U.S.-Israel war with Iran, which began Feb. 28, 2026. U.S. and Israeli strikes on Iranian targets prompted retaliation and led to Iran largely blocking the Strait of Hormuz, a chokepoint for roughly 20-25% of global seaborne oil and liquefied natural gas. Brent crude has held above $100 per barrel, near $104 as of early May. A fragile ceasefire reached in early April remains in effect but unstable, keeping energy markets on edge."
U.S. producer prices rose sharply in April 2026, with the year-over-year Producer Price Index increasing 6%, the largest gain since December 2022. Energy costs drove the increase, including a 15.6% rise in gasoline prices and a 7.8% increase in energy goods. The monthly final demand PPI climbed 1.4% on a seasonally adjusted basis, the biggest one-month advance since March 2022. Final demand goods rose 2.0%, while final demand services increased 1.2%, with transportation and warehousing up 5.0%. Core PPI rose 0.6% monthly and 4.4% annually, the highest since February 2023. The energy shock stems from U.S.-Israel-Iran conflict and Strait of Hormuz disruptions, with Brent crude near $104.
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