Anna Wong(@AnnaEconomist ):Normally on PPI release we just focus on the categories that's important for calculating core PCE deflator. But April's release is interesting in its own right, as it broadly reinforce the story we saw in the CPI release earlier today: -There is increased pass-through of tariffs in goods prices -Deflation in services is offsetting those tariffs increase -The net impact is disinflation. On services, final demand prices for transportation and warehousing, and construction are very soft.

2025.05.15 13:30

Normally on PPI release we just focus on the categories that's important for calculating core PCE deflator. But April's release is interesting in its own right, as it broadly reinforce the story we saw in the CPI release earlier today: -There is increased pass-through of tariffs in goods prices -Deflation in services is offsetting those tariffs increase -The net impact is disinflation. On services, final demand prices for transportation and warehousing, and construction are very soft.