United States Wholesale Inflation Eases to 2.3% in April

The Labor Department said Thursday that its producer price index, which measures inflation at the wholesale level before it reaches consumers, climbed 0.2% in April from the previous month. On an annual basis, prices are up 2.3%.

Excluding the more volatile measurements of food and energy, so-called core inflation rose 0.2% for the month — up from the 0% reading in March. The figure was up 3.2% on a 12-month basis, down slightly from the previous month.

And the services index climbed 0.3%, the biggest jump since November 2022, the Labor Department said in the report. More than one-third of that increase can be traced to a 4.1% rise in prices for portfolio management, which measures the prices for investment advice. Gasoline prices, meanwhile, surged 8.4%.

“The inflation pipeline is clearing as supply chains for the most part have returned to normal and commodity prices have eased significantly in response to slowing global conditions,” said Jeffrey Roach, chief economist at LPL Financial. “Investors should expect to see further easing in prices throughout the balance of 2023.”