Wholesale Prices Increase

The Labor Department said the Producer Price Index (PPI) climbed 0.3% after declining 1.2% in March. Food prices rose 1.5% in April, the biggest increase since January 2008. Food costs rose on a record jump in egg prices, along with soaring prices for vegetables and meat, Reuters reports.

Core producer prices, excluding food and energy costs, rose 0.1% in April, matching market expectations. The core PPI was unchanged in March.

Analysts polled by Reuters had forecast a 0.1% rise in the overall index. However, compared to the same period last year, prices received by producers tumbled 3.7%, the biggest decline since January 1950.

Energy prices fell 0.1% in April versus a 5.5% decline in March. Gasoline prices edged up 2.6% in April and residential natural gas fell 6.2%.