Wholesale Inflation Hits a 4-Year High. It's a Red Flag for More Than Just the Fed.

U.S. producer inflation soared in April, landing back at the record-hot levels last seen in 2022, with the latest data indicating that higher oil costs are starting to seep through to other prices

The bigger-than-expected surge in wholesale inflation was broad-based and signaled that consumer prices likely haven’t hit their peak. That threatens to put more pressure on American households already feeling the squeeze from higher prices and further complicates the Federal Reserve’s battle against persistent inflation under incoming Chair Kevin Warsh.

The producer price index for total final demand rose 1.4% in April, compared with a revised 0.7% monthly advance in March, the Bureau of Labor Statistics reported Wednesday. That was the largest monthly increase since rising 1.7% in March 2022.

The sharp monthly advance in April translated to a gain of 6% year over year, the highest annual increase since December 2022. That compared to the revised 4.3% rate logged in March.

https://www.barrons.com/articles/producer-prices-april-ppi-inflation-data-a6d45e42?st=Ky3j65&reflink=desktopwebshare_permalink

Things ain't gonna get cheaper, folks.