April PPI Rises 6% as Gasoline Soars, Trump Downplays Iran Role

The Bureau of Labor Statistics reported that the final demand Producer Price Index rose 6.0% year-over-year in April 2026, the largest annual increase since December 2022. On a seasonally adjusted basis, PPI increased 1.4% from March, the biggest monthly gain since March 2022.

Energy costs accounted for much of the advance. Final demand goods rose 2.0% for the month, with energy goods up 7.8% and gasoline alone climbing 15.6%. Jet fuel, diesel and industrial chemicals also posted notable gains. Services contributed nearly 60% of the monthly increase; final demand services rose 1.2%, the largest monthly gain in that category since March 2022. Transportation and warehousing costs climbed 5.0%, and machinery and equipment wholesaling margins increased 3.5%.

Core PPI, which excludes food, energy and trade services, rose 0.6% for the month and 4.4% year-over-year, the highest annual core reading since February 2023. The April consumer price index, released the day before, showed CPI at about 3.8% year-over-year.

The primary factor behind the energy shock was the conflict that began Feb. 28, 2026. U.S. and Israeli strikes on Iranian targets led to retaliatory actions and to Iran largely blocking the Strait of Hormuz, a chokepoint for roughly 20% to 25% of global seaborne oil and liquefied natural gas. Brent crude traded above $100 per barrel in early May, near $104. A fragile ceasefire reached in early April remains unstable.

Markets reacted to the PPI print with declines in equities and rising Treasury yields; a rally in semiconductor stocks helped the Nasdaq hold gains.

When asked how rising household costs influenced his pursuit of a diplomatic outcome with Iran, President Donald Trump told reporters he does not consider Americans’ financial situations in that policy. He said preventing Iran from obtaining a nuclear weapon is his priority and described household cost pressures as “not even a little bit” a motivating factor, adding that a durable resolution to the conflict would reduce oil prices and support an economic rebound.

Analysts estimated the April PPI would have been closer to consensus forecasts without the war-driven oil shock. They said a sustained reopening of the Strait of Hormuz could ease energy costs, but the ceasefire’s fragility leaves that outcome uncertain.