Wholesale inflation unexpectedly jumps again to highest level in a year
Bolvin Wealth Management Group President Gina Bolvin discusses the move in commodities, expected inflation data, the housing industry and her outlook for consumers.
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.
HIGH INFLATION IS COSTING AMERICANS AN EXTRA $1K A MONTH
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.
The figure was up 2.4% on a 12-month basis, in line with expectations.
«Sticky inflation looked downright stuck this morning after a much hotter-than-expected inflation reading,» said Chris Larkin, managing director, trading and investing at E*Trade. «But with last month’s numbers revised lower, this report may not have been as much of an upside shock as it first appeared to be.»
WHY ARE GROCERIES STILL SO EXPENSIVE?
High inflation has created severe financial pressures for most U.S. households, which are forced to pay more for basics like rent, groceries and gasoline. Price hikes are particularly devastating for lower-income Americans, because they tend to spend more of their
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