US wholesale prices jump 6% in April, biggest rise since 2022 as Iran war lifts energy costs

US wholesale inflation accelerated sharply in April, with producer prices recording their biggest annual increase since December 2022 as the 10-week Iran war pushed up energy costs and added pressure on companies to raise prices for consumers, AP reported.The US Labor Department said on Wednesday that its producer price index (PPI), which measures inflation before it reaches consumers, rose 6 per cent in April from a year earlier.On a monthly basis, wholesale prices climbed 1.4 per cent, marking the biggest increase since March 2022 and coming in much higher than economists had forecast.The data follows Tuesday’s report showing that the consumer price index (CPI) rose 3.8 per cent in April from a year earlier, the steepest annual increase in more than three years, as higher energy prices continued to feed through the economy.Economists closely track wholesale inflation because it can provide an early indication of where consumer prices may head in coming months.Some components of the producer price index, including healthcare and financial services, also feed into the Federal Reserve’s preferred inflation measure-- the personal consumption expenditures (PCE) price index compiled by the Commerce Department.The rise in prices comes at a time when Americans continue to grapple with high living costs and concerns over affordability.Inflation and household expenses are expected to remain major political issues ahead of the November 3 elections, which will determine whether President Donald Trump’s Republican Party retains control of the US Senate and House of Representatives.