Mounting services costs drove up US wholesale inflation in April, with the annual measure hitting its fastest pace in five years, the Labor Department reported Thursday.
The figures pointed to a rebound in price pressures after a contraction in March, which the Federal Reserve had said was likely only transitory.
The Producer Price Index, which measures input costs from the seller’s perspective, jumped 0.5 percent in the month, three tenths of a point above an analyst forecast.
Excluding the more volatile categories of food, energy and trade services, the “core” index rose by 0.7 percent, its fastest pace on record.
Compared to April 2016, PPI was up 2.5 percent, the biggest increase since February 2012, another in a string of consecutive records.
Two-thirds of April’s advance was due to increases in services, which rose 0.4 percent for the month.
Excluding the trade, transport and warehousing categories, services prices gained 0.8 percent, an all-time record. Guest-room rentals also hit an all-time record, soaring by 8.2 percent.
The Federal Reserve has raised its benchmark interest rate twice since December to get out in front of inflation before it accelerates. While they focus on consumer prices, PPI increases raise concerns about higher costs being passed on to the retail level.
Goods prices also saw gains, rising 0.5 percent for the month, with the 12-month measure holding steady at four percent.
Wholesale costs for fresh and dry vegetables gained 28.5 percent, the fastest increase in more than four years.
Meanwhile, prices for integrated microcircuits added 3.2 percent, a record monthly increase, but costs for carbon steel scrap fell by 5.3 percent, the biggest drop since losing nine percent in October.
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