US producer prices surged 1.4% month-over-month in April 2026, the largest increase since March 2022. This followed an upwardly revised 0.7% gain in March and far exceeded market expectations of a 0.5% rise.
Goods prices climbed 2.0%, driven primarily by a 15.6% spike in gasoline costs as the ongoing war in Iran continued to push oil prices higher. Prices also increased for jet fuel, diesel fuel, fresh and dry vegetables, industrial chemicals, and residual fuels.
Service prices rose 1.2%, the sharpest monthly gain since March 2022, mainly reflecting a 3.5% increase in margins for machinery and equipment wholesaling. Costs also advanced for truck freight transportation; fuels and lubricants retailing; health, beauty, and optical goods retailing; chemicals and allied products wholesaling; and legal services.
On an annual basis, producer prices jumped 6.0%, the strongest increase since December 2022, following an upwardly revised 4.3% rise in March and beating forecasts of a 4.9% gain.
