The United States' April producer price index (PPI) far exceeded market expectations on the back of higher energy prices, marking the biggest monthly gain since 2022.
The Labor Department said on the 13th (local time) that April PPI rose 1.4% from the previous month on a seasonally adjusted basis. That sharply beat the market forecast of 0.5% compiled by Dow Jones. By monthly gain, it was the largest since March 2022.
On a year-over-year basis, the index rose 6.0%, the highest since December 2022. The prior month's increase was revised up to 0.7% from 0.6%.
Core PPI, which excludes the volatile categories of food and energy, rose 1.0% from the previous month, topping the market forecast of 0.4%. The year-over-year increase was 5.2%.
Rising energy prices drove overall inflation higher. In April, energy prices climbed 7.8% from the previous month, and gasoline prices surged 15.6%. Jet fuel and diesel prices also rose.
Service prices also saw a wider increase. Service prices rose 1.2% from the previous month, the biggest jump since March 2022. Transportation and warehousing service prices increased 5.0%.
The PPI release followed the consumer price index (CPI) data published the day before. Earlier, the United States' April CPI rose 3.8% year over year.
With both consumer and producer prices coming in hotter than expected, markets are noting the Federal Reserve (Fed) could delay the timing of interest rate cuts.