US wholesale inflation rises more than forecast

(Sharecast News) - US producers prices rebounded more than expected in April after a downwardly revised fall the precious month, with the annual rate of inflation rising to its highest level in a year. The Bureau of Labor Statistics said US producer price index (PPI) increased by 0.5% over the month of April, compared with a fall of 0.1% in March, which was revised from the 0.2% increase initially recorded.

This was ahead of the 0.3% increase expected by economists, with nearly three-quarters of April's gain coming from an increase in the index for final demand services, the Bureau said.

Excluding more volatile items like food and energy, PPI also rose 0.5% after a 0.1% decline previously, missing the 0.2% estimate.

The annual change in the PPI picked up to 2.2% from a downwardly revised 1.8% increase the month before - marking the strongest annual increase since April 2023 - though the core year-on-year rate held steady at 2.4%.