US wholesale prices up a tiny 0.1 per cent in April
WASHINGTON — U.S. wholesale prices edged up just 0.1 per cent in April, held down by a big drop in food costs. It was the smallest gain in four months.
The April increase in the Labor Department’s producer price index, which measures inflation pressures before they reach consumers, followed a 0.3 per cent rise in March, the government reported Wednesday. It was the smallest gain since wholesale prices were unchanged in December.
Core prices, which exclude volatile energy and food, rose 0.2 per cent in April. Over the past 12 months, wholesale prices are up 2.6 per cent while core wholesale prices have risen 2.3 per cent.
The Federal Reserve seeks to manage the economy to keep inflation rising at a moderate annual rate of 2 per cent. The Fed last week left its key interest rate unchanged while noting that inflation is nearing its optimal goal.