Wholesale inflation in April recorded the sharpest drop since the onset of the COVID-19 pandemic, signaling that U.S. tariffs have yet to impact consumers.
Last month, the producer price index (PPI)—a gauge of prices for goods and services paid by businesses early in the supply chain—fell by 0.5 percent, down from the upwardly adjusted zero percent recorded in March.
The consensus forecast suggested a 0.2 percent increase.
According to May 15 data released by the Bureau of Labor Statistics, annual headline PPI inflation slowed sharply to 2.4 percent from 3.4 percent, slightly lower than the market estimate of 2.5 percent.
Core wholesale prices, which omit the volatile energy and food categories and are considered a more accurate inflation predictor, also declined by 0.4 percent in April. This was down from March’s upwardly revised 0.4 percent increase and lower than economists’ expectations….