Amsterdam, Netherlands – New data released on Tuesday revealed that wholesale prices experienced a higher-than-expected increase in April. Federal Reserve Chair Jerome Powell described the data as mixed, noting that while headline numbers were up, there were revisions to March’s Producer Price Index.
In April, wholesale prices rose by 0.5% compared to the previous month, exceeding the 0.3% consensus forecast. The Producer Price Index, which tracks the prices producers receive for goods produced, also showed a 0.5% increase in the “core” PPI, excluding food and energy categories.
However, March’s monthly price increase was revised downward to a 0.1% decrease from the initial reported 0.2% increase. Powell expressed some uncertainty regarding inflation, stating that his confidence in inflation continuing to decrease is not as strong as previously anticipated.
Powell emphasized the importance of patience in adjusting interest rates, acknowledging that the recent inflation readings were higher than anticipated. He highlighted the need for the central bank to allow current policies to take effect before considering any adjustments.
The mixed data on wholesale prices in April suggests potential challenges in managing inflation moving forward. Powell’s caution in responding to these figures reflects a nuanced approach to economic policy in the face of uncertain market conditions.