Editor’s note: This article was updated to add details and context.
U.S. producer prices jumped the most since 2022 last month as the Strait of Hormuz energy shock continued to feed through the inflation pipeline, adding fresh concerns over the Federal Reserve’s rate outlook
The rate of increase in the headline Producer Price Index climbed from an upwardly revised 4.3% year-over-year in March to a whopping 6% in April, the Bureau of Labor Statistics reported Wednesday. The outcome largely topped economist expectations of 4.9% and marked the hottest annual PPI reading since December 2022. On a monthly basis, wholesale prices rocketed 1.4% – the largest monthly jump since March 2022 – far surpassing both the previous 0.7% and the expected 0.5% surge.
Stripping out food and energy, core PPI accelerated from an upwardly revised 4% to 5.2%, topping the 4.3% forecast. Again it’s the highest annual rate since December 2022. Underlying month-over-month pressures rose 1%, accelerating from the prior 1% against a 0.3% consensus.