Wholesale inflation unexpectedly jumps again to highest level in a year

Labor Department releases closely watched wholesale inflation data

Inflation at the wholesale level rose much more than expected in April, the latest sign that price pressures within the economy remain elevated and difficult to tame.

The Labor Department said Tuesday that its producer price index, which measures inflation at the wholesale level before it reaches consumers, rose 0.5% in April from the previous month. On an annual basis, prices remain up 2.2% — the highest level since April 2023.

While the monthly gain is notably higher than the 0.3% increase forecast by LSEG economists, the headline figure is in line with expectations.

HIGH INFLATION IS COSTING AMERICANS AN EXTRA $1K A MONTH

In another sign that points to the stickiness of high inflation, core prices — which exclude the more volatile measurements of food and energy — rose 0.5% for the month. That is higher than both the 0.2% estimate and the gain recorded the previous month.

The figure was up 2.4% on a 12-month basis, in line with expectations

A worker arranges produce at a Costco store in Teterboro, New Jersey, on Feb. 28. (Stephanie Keith/Bloomberg via Getty Images / Getty Images)