UNITED STATES NEWS

US producer prices surge 11% in April as food prices jump

May 12, 2022, 5:54 AM | Updated: May 13, 2022, 8:48 am
FILE - Shown are meat products at a grocery store in Roslyn, Pa., Tuesday, June 15, 2021. U.S. prod...

FILE - Shown are meat products at a grocery store in Roslyn, Pa., Tuesday, June 15, 2021. U.S. producer prices soared 11% in April from a year earlier, a hefty gain that indicates high inflation will remain a burden for consumers and businesses in the months ahead. The Labor Department said Thursday, May 12, 2022, that its producer price index -- which measures inflation before it reaches consumers -- climbed 0.5% in April from March. (AP Photo/Matt Rourke, File)

(AP Photo/Matt Rourke, File)

WASHINGTON (AP) — U.S. producer prices soared 11% in April from a year earlier, a hefty gain that indicates high inflation will remain a burden for consumers and businesses in the months ahead.

The Labor Department said Thursday that its producer price index — which measures inflation before it reaches consumers — climbed 0.5% in April from March. That is a slowdown from the previous month, however, when it jumped 1.6%.

The report included some signs that price increases are moderating, but at a painfully high level. The year-over-year increase in April fell from the 11.5% annual gain in March, the first decline in the yearly data since December 2020. And the monthly gain of 0.5% was the smallest in seven months.

Yet prices are still rising at a historically rapid clip. Food costs rose 1.5% just in April from March, while shipping and warehousing prices leapt 3.6%. New car prices rose 0.8%.

The producer price data captures inflation at an earlier stage of production and can sometimes signal where consumer prices are headed. It also feeds into the Federal Reserve’s preferred measure of inflation, the personal consumption expenditures price index.

Thursday’s figures came just a day after the government released consumer price data for April, which showed that inflation leapt 8.3% last month from a year ago. That increase is down slightly from the four-decade high in March of 8.5%. On a monthly basis, inflation rose 0.3% in April from March, the smallest increase in eight months.

Still, there were plenty of signs in the consumer price report that inflation will remain stubbornly high, likely for the rest of this year and into 2023. Rents rose faster as many apartment buildings have lifted monthly payments for new tenants. Prices for airline tickets jumped by the most on records dating to 1963. And food prices continued to rise sharply.

The Federal Reserve has stepped up its fight against rampant price increases, lifting its benchmark short-term interest rate by a half-point last week to a range of 0.75% and 1%. That increase is double its usual quarter-point hike.

Fed Chair Jerome Powell also signaled the Fed will likely hike rates by a half-point in June and July. Several Fed officials have said they would like to get its benchmark rate to roughly 2.5% by the end of this year, which would constitute the fastest pace of hikes in 33 years.

The prospect of higher interest rates and the potential that they could push the economy into recession has badly rattled financial markets this month.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Lifetime Windows & Doors

United States News

Associated Press

Biden calls migrant deaths ‘horrifying and heartbreaking’

WASHINGTON (AP) — President Joe Biden said Tuesday that the deaths of migrants who were in the back of a tractor-trailer in Texas was “horrifying and heartbreaking.” While we are still learning all the facts about what happened and the Department of Homeland Security has the lead for the investigation, initial reports are that this […]
9 hours ago
An Amtrak train which derailed after striking a dump truck is seen beyond a corn field Monday, June...
Associated Press

NTSB investigators look into fatal Missouri Amtrak accident

MENDON, Mo. (AP) — Investigators with the National Transportation Safety Board were in Missouri Tuesday trying to determine how an Amtrak train carrying more than 200 people slammed into a dump truck, killing two train passengers and the truck driver. Amtrak’s Southwest Chief was traveling from Los Angeles to Chicago Monday afternoon when it struck […]
9 hours ago
Associated Press

Nissan recalls about 323K SUVs; hoods can open unexpectedly

WASHINGTON (AP) — Nissan is recalling nearly 323,000 Pathfinder SUVs in the U.S. because the hoods can unexpectedly fly open and block the driver’s view. The recall covers Pathfinders from the 2013 through 2016 model years. The automaker says in documents posted Tuesday by U.S. safety regulators that dust and dirt can accumulate on the […]
9 hours ago
FILE - This Feb. 22, 2018, file photo, shows an Airbnb logo during an event in San Francisco. Airbn...
Associated Press

Airbnb makes global party ban permanent, saying it works

SAN FRANCISCO (AP) — Airbnb is making permanent its ban on parties at homes listed on the site for short-term rentals. The San Francisco company believes the ban has worked, saying Tuesday that reports of parties at listed properties have dropped 44% from a year ago. More than 6,600 guests were suspended last year for […]
9 hours ago
FILE - Shoppers shop at a retail store in Niles, Ill., on Feb. 19, 2022.   U.S. consumer confidence...
Associated Press

US consumer confidence slumps to lowest level in 16 months

WASHINGTON (AP) — U.S. consumer confidence slipped to its lowest level in 16 months as persistent inflation and rising interest rates have Americans as pessimistic as they’ve been about the future in almost a decade. The Conference Board said Tuesday that its consumer confidence index slipped to 98.7 in June from 103.2 in May, the […]
9 hours ago
President Joe Biden and Spain's Prime Minister Pedro Sánchez shake hands as they meet at the Palac...
Associated Press

Biden arrives in Spain looking to buck up weary NATO allies

MADRID (AP) — President Joe Biden arrived in Spain on Tuesday to meet with fellow leaders of NATO with plans to beef up the American presence in Europe at a moment of growing concern about the alliance’s resolve in the face of the grinding war in Ukraine. White House national security adviser Jake Sullivan said […]
9 hours ago

Sponsored Articles

...
Carla Berg, MHS, Deputy Director, Public Health Services, Arizona Department of Health Services

Vaccines are safe if you are pregnant or breastfeeding

Are you pregnant? Do you have a friend or loved one who’s expecting?
...
Christina O’Haver

BE FAST to spot a stroke

Every 40 seconds—that’s how often someone has a stroke in the United States. It’s the fifth leading cause of death among Americans, with someone dying of a stroke every 3.5 minutes.
...
Carla Berg, MHS, Deputy Director, Public Health Services, Arizona Department of Health Services

ADHS mobile program brings COVID-19 vaccines and boosters to Arizonans

The Arizona Department of Health Services and partner agencies are providing even more widespread availability by making COVID-19 vaccines available in neighborhoods through trusted community partners.
US producer prices surge 11% in April as food prices jump