Rebound in U.S. Wholesale Prices Signals Inflation Pressures

The bigger-than-forecast rebound in April wholesale prices indicates inflation pressures continue to build in the U.S. economy and that March’s decline was short-lived, Labor Department data showed Thursday.

The advance in wholesale prices was fairly broad-based, indicating that inflation is picking up throughout the economy. Signs of increasing global demand could continue to drive up costs of some commodities and allow price pressures to build up in the production pipeline. The jump in a gauge excluding volatile food, energy and trade services increases chances that consumer inflation will be sustained around the Federal Reserve’s 2 percent goal, supporting forecasts for interest-rate hikes in the coming months.