May 15 (UPI) — U.S. April wholesale inflation experienced its biggest drop since 2020, according to a Bureau of Labor Statistics report Thursday.

The Producer Price Index fell 0.5% in April and 2.4% annually.

in April and 2.4% for the 12 months ended April 2025.a 0.2% riseEconomists expected

“The April decline in the index for final demand is attributable to prices for final demand services, which decreased 0.7%. The index for final demand goods was unchanged,” BLS said.”

“Prices for final demand less foods, energy, and trade services edged down 0.1% in April, the first decline since falling 0.8% in April 2020. For the 12 months ended April 2025, the index for final demand less foods, energy, and trade services advanced 2.9%.”

More than 40% of the April decline in PPI services was due to machinery and vehicle wholesaling, which dropped 6.1%.

“Prices for final demand services moved down 0.7% in April, the largest decline since the index began in December 2009,” the BLS statement said. “Over two-thirds of the broad-based decrease can be traced to margins for final demand trade services, which dropped 1.6%.”

Consumer inflation for April as measured by the Consumer Price Index rose 0.2% in April, an annual rate of 2.3%. That was slightly less than expected.

Core CPI, excluding volatile energy and food prices, rose 0.2% for April and 2.8% on the year.