The producer price index, a gauge of prices received at the wholesale level, increased 0.5% in April, the Labor Department’s Bureau of Labor Statistics reported Tuesday. On a year-over-year basis, wholesale inflation rose 2.2%, also the highest in a year. The core PPI inflation was at 2.4%, the biggest annual move since August 2023.
Stripping out volatile food and energy prices, the core PPI also rose 0.5%. Excluding trade services from that core group showed a 0.4% increase on the month and 3.1% on a 12-month basis, the highest level since April 2023.
Services prices boosted the wholesale inflation reading, rising 0.6% and accounting for about three-quarters of the headline gain, while the final demand goods index increased 0.4%. The services increase was the biggest monthly gain since July 2023, the BLS reported.