The Producer Price Index for finished goods rose 0.8 percent in April, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This advance followed increases of 0.7 percent in March and 1.6 percent in February. At the earlier stages of processing, prices received by manufacturers of intermediate goods climbed 1.3 percent in April, and the crude goods index rose 4.0 percent. On an unadjusted basis, prices for finished goods moved up 6.8 percent for the 12 months ended April 2011, the largest year-over-year gain since an 8.8-percent increase in September 2008.

Stage of Processing Analysis

About three quarters of the April advance in the finished goods index can be traced to a 2.5-
percent jump in prices for finished energy goods. Also contributing to the rise in the finished
goods index, prices for both finished goods other than foods and energy and for finished
consumer foods moved up 0.3 percent in April.

Finished energy: Prices for finished energy goods increased 2.5 percent in April, the seventh
consecutive monthly advance. Over half of the April rise can be attributed to the gasoline index,
which climbed 3.6 percent. Higher prices for liquefied petroleum gas and residential natural gas
also were factors in the increase in the finished energy goods index. (See table 2.)

Finished core: The index for finished goods less foods and energy moved up 0.3 percent in
April, the fifth straight monthly rise. Nearly one-fourth of the April monthly advance can be
traced to a 1.2-percent jump in civilian aircraft prices. An increase in the index for light motor
trucks also contributed significantly to the rise in finished core prices.

Finished foods: Prices for finished consumer foods rose 0.3 percent in April after falling 0.2
percent in the prior month. Leading this advance, the index for eggs for fresh use surged 56.7
percent.

Intermediate goods

The Producer Price Index for intermediate materials, supplies, and components rose 1.3 percent
in April, the ninth consecutive monthly advance. The broad-based April increase was led by
prices for intermediate goods less foods and energy, which moved up 1.1 percent. The indexes
for intermediate energy goods and for intermediate foods and feeds also contributed to the
intermediate goods advance, rising 1.9 percent and 1.8 percent, respectively. For the 12 months
ended April 2011, prices for intermediate goods climbed 9.4 percent, the largest increase since a
9.8-percent jump in October 2008. (See table B.)

Intermediate core: Prices for intermediate goods less foods and energy moved up 1.1 percent in
April, the ninth consecutive monthly rise. About fifteen percent of the April gain can be
attributed to the index for primary basic organic chemicals, which increased 3.2 percent. Higher
prices for ethanol and steel mill products also contributed to the advance in intermediate core
prices. (See table 2.)

Intermediate energy: The index for intermediate energy goods climbed 1.9 percent in April, the
smallest advance since a 1.5-percent increase in November 2010. Prices for diesel fuel, which
moved up 3.5 percent, were a significant contributor to the April rise. Higher prices for gasoline
also were a factor in the increase in the intermediate energy goods index.

Intermediate foods: The intermediate foods and feeds index advanced 1.8 percent in April, the
ninth straight monthly increase. A 5.6-percent jump in prices for beef and veal accounted for a
quarter of the April advance in the intermediate foods and feeds index.

Crude goods

The Producer Price Index for crude materials for further processing increased 4.0 percent in
April. For the 3 months ending in April, prices for crude materials moved up 7.0 percent
following an 11.4-percent jump for the 3 months ending in January. Leading the broad-based
monthly advance in April, the index for crude energy materials rose 4.8 percent. Prices for crude
foodstuffs and feedstuffs and for crude nonfood materials less energy increased 4.0 percent and
2.6 percent, respectively. (See table B.)

Crude energy: The index for crude energy materials moved up 4.8 percent in April. From
January to April, crude energy prices advanced 5.3 percent compared with a 17.9-percent jump in
the previous 3-month period. For the month of April, the index for natural gas rose 9.4 percent,
accounting for over half of the increase in prices for crude energy materials. Advances in the
indexes for crude petroleum and coal also contributed to higher crude energy prices. (See table
2.)

Crude foods: Prices for crude foodstuffs and feedstuffs advanced 4.0 percent in April. For the
3 months ending in April, the index for crude foods jumped 11.4 percent subsequent to moving
up 5.5 percent from October to January. Accounting for about half of the monthly rise in April,
the grains index increased 15.5 percent. Higher prices for slaughter steers and heifers also were a
factor in the advance in the crude foods index.

Crude core: The index for crude nonfood materials less energy rose 2.6 percent in April. From
January to April, crude core prices moved up 2.5 percent after a 10.1-percent advance in the
previous 3-month period. For the month of April, a 4.5-percent increase in the index for copper
base scrap was a factor in higher crude core prices.

Services Analysis

Trade industries: The Producer Price Index for the net output of total trade industries moved
up 0.1 percent in April, the third consecutive increase. (Trade indexes measure changes in
margins received by wholesalers and retailers.) Leading the April advance was a 5.3-percent
increase in margins received by department stores. Higher margins received by women’s clothing
stores and by electronic shopping and mail order houses also contributed significantly to the rise
in the total trade industries index.

Transportation and warehousing industries: The Producer Price Index for the net output of
transportation and warehousing industries rose 0.3 percent in April, the seventh consecutive
increase. Accounting for forty-five percent of the April advance, prices received by couriers
climbed 1.4 percent. Increases in the indexes for long distance general freight trucking
(truckload) and line-haul railroads also were factors in the April rise in the transportation and
warehousing industries index.

Traditional service industries: The Producer Price Index for the net output of total traditional
service industries moved up 0.7 percent in April after no change in the previous month. Leading
this advance, prices received by the depository credit intermediation industry group rose 7.3
percent. Higher prices received by insurance carriers and by general medical and surgical
hospitals also contributed to the increase in the total traditional service industries index.