Producer prices dropped sharply in April, falling 1.3% on a seasonally adjusted basis. It was the largest drop in the index since the Bureau of Labor Statistics began tracking it in 2009.
The lion's share of this decline -- more than 80% -- was due to a 3.3% drop in prices for goods, which in turn was driven by a 19% collapse in demand for energy.
The oil market crisis, driven by a global demand rout and storage limitations, pushed one oil futures contract to trade in negative territory last month. This pushed down energy prices across the board. Two-thirds of the April demand decrease for goods is linked to a 56.6% fall in gasoline prices, according to the BLS.
Excluding food, energy and trade services, the index still fell 0.9% in April, which was its largest decline in the series.
On an unadjusted basis, producer prices have fallen 1.3% over the past twelve months, their largest decline since November 2015.
This follows yesterday's drop in consumer prices, which fell at the fastest level since 2008. The drop was largely driven by energy prices, but also pushed down by lower prices on apparel and vacation spending.