U.S. wholesale prices post record rise since 2022 amid war with Iran

U.S. wholesale prices in April rose at the highest rate in more than three years amid rising energy costs due to the war in Iran, CNBC reported.

The seasonally adjusted Producer Price Index (PPI) rose 1.4% for the month, the U.S. Bureau of Labor Statistics (BLS) reported Wednesday, Ma. 13. This is well above the Dow Jones consensus forecast of 0.5% and the revised March reading of 0.7%. Thus, in April PPI showed the maximum monthly increase since March 2022, notes CNBC.

On an annualized basis, the index increased 6%, the strongest growth since December 2022, the TV channel notes.

The core PPI, which excludes food and energy prices, rose 1% against expectations of a 0.4% increase. The index excluding food, energy and trade services rose by 0.6%.

The main driver of the unexpectedly strong rise in the producer price index was energy - much like the sharp acceleration in U.S. consumer inflation in April reported by the BLS a day earlier.

According to the ministry, about three-quarters of the increase in commodity prices in April was due to a 7.8% jump in energy prices. Gasoline accounted for more than 40% of that increase, with prices jumping 15.6% for the month. In April, the cost of fuel at gas stations exceeded $4 per gallon amid pressure on the energy market due to the war in the Middle East, CNBC writes.

Futures on the S&P 500 declined amid the publication of macroeconomic data by almost 0.1%, futures on the Nasdaq 100 added 0.25%. Exchange contracts on Dow Jones lost 0.5%.

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