WASHINGTON, D.C. – New government data revealed an unexpected decline in producer prices in April, according to the Bureau of Labor Statistics.
Producer prices, which reflect what businesses like wholesalers pay for goods, typically indicate future consumer price trends.
Despite ongoing tariffs, which many economists believe will lead to increased prices, the Bureau of Labor Statistics reported a 0.5% decline in producer prices. However, a closer analysis shows that prices for goods likely affected by tariffs have risen over the past few months.
In April, producer prices for all goods, excluding food and energy, rose by 0.4%. This marks the fastest rate of increase in two years.
The trends in producer prices offer a glimpse into potential shifts in consumer prices in the coming months.
