Producer Prices Rise Hotter Than Expected as Inflation Pressures Persist

Producer prices—the cost of goods and services paid by businesses—rose hotter than expected in April, adding to concerns that the U.S. economy could be in the middle of another inflation wave. The producer price index (PPI) rose 0.5 percent last month, up from negative 0.1 percent in March, according to the Bureau of Labor Statistics (BLS). This topped the consensus estimate of 0.3 percent. Compared to the same time a year ago, the PPI rose to 2.2 percent, up from 1.8 percent. This was in line with economists’ expectations and represented the highest reading since April 2023. Core PPI, which strips the volatile food and energy components, climbed 0.5 percent, up from negative 0.1 percent. This topped the market forecast of 0.2 percent....