After the collapse in consumer prices (surging food costs offset by a collapse in energy costs), producer prices are expected to follow suit but actually printed far worse than expected. Headline PPI fell 1.3% MoM - a record and notably worse than the 0.5% drop expected, plunging YoY into deflation...
Even ex food, energy, and trade, PPI fell0.9% MoM (drastically worse than the 0.1% drop expected).
The index for final demand goods fell 3.3 percent in April, the largest decline since the series began in December 2009. Most of the broad-based decrease is attributable to prices for final demand energy, which fell 19.0 percent. The indexes for final demand goods less foods and energy and for final demand foods moved down 0.4 percent and 0.5 percent, respectively.
Two-thirds of the April decrease in the index for final demand goods can be traced to prices for gasoline, which dropped 56.6 percent. This is the largest decrease since the series began in February 1947. The indexes for jet fuel, diesel fuel, basic organic chemicals, home heating oil, and corn also moved lower. In contrast, prices for beef and veal rose 12.6 percent. The indexes for distilled and bottled liquor (excluding brandy) and for electric power also increased.
Leading the April decline in the index for final demand services, prices for portfolio management fell 12.0 percent. The indexes for airline passenger services; traveler accommodation services; services related to securities brokerage and dealing (partial); hospital outpatient care; and apparel, footwear, and accessories retailing also moved lower. In contrast, margins for automotive fuels and lubricants retailing rose 41.6 percent. The indexes for inpatient care and for chemicals and allied products wholesaling also advanced.
So - summing up the lockdown - gas prices plunged as demand for booze sent prices soaring.