US wholesale prices rose 0.2 percent in April while the so-called core rate of inflation excluding food and energy increased 0.4 percent, the Labor Department said Tuesday.
The producer price index (PPI) suggests higher food and energy costs are feeding into other items, with the potential to ignite higher inflation. But it remains unclear the degree to which inflation at the wholesale level will affect consumer costs.
Analysts had expected a 0.4 percent increase in the headline index and a 0.2 percent rise in core PPI.
Over the past 12 months, the PPI is up a worrisome 6.5 percent, lifted by record energy costs, while core prices are up 3.0 percent.
Unlike in recent months, food and energy costs were not a factor in inflation. Overall energy prices at the wholesale level fell 0.2 percent and food prices were flat.
The index was boosted by a 1.8 percent jump in commercial furniture prices, a 1.3 percent increase in light trucks and a 1.0 percent rise in alcoholic beverages.
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