Producer prices accelerated last month, signaling renewed inflationary pressures ahead for consumers.
The producer price index—a measure of the prices paid for goods and services by businesses—rose by 1.4 percent in April, the sharpest increase since March 2022, according to new Bureau of Labor Statistics data published on May 13.
March’s increase was adjusted upward to 0.7 percent, and above the 0.5 percent consensus.
Economists pay attention to producer inflation because it can serve as a pipeline indicator of what shoppers may face in the future.
On an annualized basis, wholesale inflation advanced to a higher-than-expected 6 percent, the largest gain since December 2022. This is also up from the upwardly revised 4.3 percent registered in the previous month and above market estimates….