Following the release of U.S. consumer inflation figures a day earlier, new data published Wednesday by the Labor Department showed producer prices rose far more than expected in April, adding to concerns about persistent inflationary pressures.
The Labor Department said its producer price index for final demand increased 1.4% in April after March’s gain was revised higher to 0.7%.
Economists had forecast another 0.5% increase, matching the level initially reported for March.
The report also showed annual producer inflation accelerated to 6.0% in April from 4.3% the previous month, significantly above analyst expectations for a rise to 4.9%.