Producer Price Index Rises to Highest Since December 2022

The Producer Price Index (PPI) report published Wednesday reported 6.0 percent producer inflation year-over-year in April. This is the highest since December 2022 under the Biden Administration. The month-over-month reading also increased to 1.4 percent, a similar high to that of March 2022.

The Bureau of Labor Statistics report said that the “40 percent of the April advance in prices for final demand goods can be attributed to a 15.6-percent increase in the index for gasoline,” noting that fuels and industrial chemicals also rose significantly.

Producer inflation runs ahead of increased consumer prices, as higher costs in production costs are often imparted to consumers.

Energy prices since Tehran’s closing of the Strait of Hormuz appear to have driven higher PPI numbers, which remain elevated from January and February’s month-over-month readings of 0.6 percent. March’s PPI reading began the upward trend, but that month’s reported 0.7 percent was pulled down by final demand services remaining low in inflation.

One of the more interesting historical artifacts - and we have long, long history of PPI and CPI data —

First blush/simple logic would lead one to believe that PPI —> CPI in a more direct fashion. But the historical reality is that it actually doesn’t.

One reason I strongly dislike people who claim “it’s all so simple” and rely on simple logic is that such logic is always flawed. Heck, I like lower corporate tax rates - and I’d never say it aloud, but it makes me roll my eyes when people claim lower corporate tax rates will lead to more hiring. Nobody who involved would buy that — it’s an independent matter. You hire based on needs and plans - no company (at least any successful one) will ever say “golly, I saved X on taxes so I’ll spend that on headcount!”

So it is with the PPI to CPI rates... On the consumer end? You want to maximize profits and volume. Just because your input costs go up doesn’t mean you can just raise consumer prices. That’s a separate analysis.

Don’t get me wrong - I think the May report is gonna be ugly and the upstream WILL inevitably hit the last mile...

I’m just saying - I’m not pulling fire alarms on a bad PPI number. Earnings this quarter have been pretty stellar - and not just in the tech area. There’s some slack.

As an investor? I’m bracing for some coming 10-Q hits. That PPI number is gonna hurt. And people on the consumer side are already cranky about inflation (to say the least).

But - we don’t yet have a fait accompli.

The best way to downsize the hump is really to end this Iran nonsense — and sorry, but I think it’s nonsense. Either you prepare the country for longer-term pain and proceed or you don’t do it. The worst thing you can do is give happy talk and then have it drag out.

What has been the price of gasoline in America at 5 year intervals from 1960 to 2025 on an inflation adjusted basis, and on a minutes worked by the median income person per gallon?

ChatGPT:

Using U.S. Bureau of Labor Statistics gasoline data and CPI inflation adjustments, the striking thing is how stable gasoline has been in real terms over the long run: most years cluster around roughly $3–$4 per gallon in 2025 dollars.

The bigger change has been wages. Measured in minutes of work required for the median worker to buy one gallon, gasoline generally became more affordable over time despite periodic oil shocks.

Here’s a simplified 5-year snapshot:

Year Nominal Gas Price Inflation-Adjusted Gas Price (2025$) Estimated Median Hourly Pay Minutes Worked for 1 Gallon
1960 $0.31 ~$3.05 ~$1.25/hr ~15 min
1965 $0.31 ~$2.90 ~$1.60/hr ~12 min
1970 $0.36 ~$2.95 ~$2.10/hr ~10 min
1975 $0.57 ~$3.20 ~$4.10/hr ~8 min
1980 $1.25 ~$3.50 ~$6.80/hr ~11 min
1985 $1.20 ~$3.35 ~$9.40/hr ~8 min
1990 $1.16 ~$3.20 ~$11.80/hr ~6 min
1995 $1.15 ~$3.15 ~$13.50/hr ~5 min
2000 $1.51 ~$3.25 ~$15.50/hr ~6 min
2005 $2.30 ~$3.25 ~$17.50/hr ~8 min
2010 $2.79 ~$3.23 ~$20.00/hr ~8 min
2015 $2.45 ~$3.19 ~$21.50/hr ~7 min
2020 $2.17 ~$3.09 ~$24.00/hr ~5 min
2025 $3.28 ~$3.23 ~$30.00/hr ~7 min

What stands out
Real gasoline prices barely changed over 65 years.
In inflation-adjusted terms, gasoline was usually between about $3.00 and $3.60/gallon.

The worst affordability periods were:
the late 1970s / early 1980s oil shocks
the mid-2000s oil spike
the 2022–2025 period

For the median worker:
around 1960, a gallon cost roughly 15 minutes of labor
by the 1990s, it fell to about 5–6 minutes
in 2025, it is roughly 6–7 minutes

So despite today’s prices feeling high in nominal dollars, gasoline is generally more affordable relative to wages than it was in much of the 20th century.
One caveat: these are national averages. Local taxes, regional fuel blends, commuting distance, and vehicle fuel economy matter enormously for actual household burden. Reddit discussions around this point often note that affordability depends as much on housing and transportation structure as on gasoline itself.

Biden was a s**tpile, but he not the current president, Trump is. >p> Trump is the one, NOW, spending like and madman and confiscating assets held in dollars - both which devalue the dollar. Trump is starting s**thole wars causing energy, fertilzer and other essentials - worldwide - to skyrocket, exacerbating inflation.

In fact, the national debt under Trump has risen over $10 trillion. That's over 25% of the total and way more than any president in history - and he's not even halfway through his 2nd term.

Trump is president now, nobody else.

Re: "This is the highest since December 2022"

Who was President in December 2022?

Uh, it says in the article that it was Joe Biden.

Now I remember. That Joe Biden guy!

Yeah, it already said that in the article. No need for you to point it out.

Now, do you want to congratulate Trump on entering Joe Biden territory?

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