US wholesale inflation just hit its highest rate in a year

Americans are facing the prospect of more price hikes as wholesale inflation reached its highest level in a year in April. The Producer Price Index, which measures the change in prices paid by manufacturers to suppliers, increased by 2.2% for the 12 months ending in April. This is higher than the previous month’s figure of 1.8%. On a monthly basis, prices rose by 0.5%, surpassing economists’ expectations of a 0.3% gain. Rising producer prices are worrisome as they could lead to higher consumer price inflation in the coming months. This could result in interest rates staying elevated and delay the Federal Reserve’s plans for cuts.