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.

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.

Grocery shopping by Melanie Lim is licensed under Unsplash
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