US Wholesale Inflation Jumps 6% in April, Most Since 2022
US producer prices rose 6% in April year-on-year, the largest annual gain since 2022. The 1.4% monthly jump points to the Iran conflict feeding through into energy costs. Treasury yields climbed as expectations of imminent rate cuts faded.
US producer prices rose 6% year-on-year in April, the strongest annual jump since 2022. Core producer inflation also exceeded forecasts at 4.5%. The monthly print showed a sharp 1.4% gain, with the steepest pressure in energy and transportation lines.
The report landed as the Iran conflict tightened global energy markets. Consumer inflation had already risen to 3.8% the previous month, and the wholesale acceleration fuels concern that retail prices will follow in the coming months.
After the release, the US 10-year Treasury yield climbed to its highest level since 2005. Futures markets now price the odds of a Fed rate cut by year-end in single digits. Analysts say the communication strategy of new Fed chair Kevin Warsh will be pivotal for both bond and equity markets.
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