US wholesale inflation jumps 6% in April, the biggest annual rise since 2022
The US producer price index rose 6% year on year in April, the steepest gain since 2022. The reading underlines pressure from Iran-war energy costs and revives debate over the Federal Reserve's rate-cut path. Economists expect the pass-through to consumer prices to intensify in the coming months.
Data released by the US Labor Department showed the producer price index climbed 6% from a year earlier in April. The reading marks the sharpest annual gain since early 2022 and came in well above market expectations.
The main driver was a jump in energy and raw-material costs after the Iran war pushed crude and refined-product prices higher. Petroleum, transportation and food-processing inputs all rose during the month. Economists expect the wholesale move to feed through to consumer inflation with a lag of several months.
The number reignited debate over when the Federal Reserve will resume rate cuts. Treasury yields climbed and futures markets pared the number of cuts priced in for the rest of the year. Investors are now focused on next week's retail sales and labour-market figures for further direction.
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