For those Americans shopping wholesale they just got even worse news, inflation at the wholesale level is now the highest it’s been in a year.

Inflation at the wholesale level has unexpectedly risen in April, suggesting that price pressures within the U.S. economy are persisting and proving difficult to manage. According to the latest report from the Labor Department, the producer price index (PPI), which measures inflation before it impacts consumers directly, increased by 0.5% from March to April. This rate of increase is higher than the expected 0.3% predicted by LSEG economists and indicates that prices are up 2.2% compared to April of the previous year, marking the highest annual increase since April 2023.

This spike in the PPI is a clear indicator that inflation remains a significant concern. The core prices within the PPI, which exclude the often fluctuating costs of food and energy, also rose by 0.5% in April. This increase is higher than the anticipated 0.2% and exceeds the previous month’s rise, matching the overall trend of persistent and stubborn inflationary pressures.

Chris Larkin, managing director of trading and investing at E*Trade, commented on the data, noting that despite a revision that lowered last month’s figures, the latest numbers still pointed to significant inflationary pressure.

The impact of high inflation is acutely felt across American households, which face increased costs for essentials such as rent, groceries, and gasoline. These price hikes hit lower-income families particularly hard, as they spend a larger portion of their income on necessities, leaving little room for savings or financial maneuvering.

Attention now turns to the upcoming consumer price index (CPI) release from the Labor Department, expected the day after the PPI report. The CPI measures inflation more directly as it affects consumers and is anticipated to show a 0.4% increase from March to April, with an annual rise of 3.4%.

Both the PPI and CPI are crucial for understanding inflation trends, with the PPI often seen as a precursor to price changes that consumers will eventually face. Current inflation rates continue to exceed the Federal Reserve’s target of 2%, prompting close scrutiny from the Fed. Despite high inflation in the first quarter of the year, which led to maintaining higher interest rates, the Fed has hinted at possible rate cuts later in the year.

Yeah, that’s probably not going to happen now.

Gotta love, good old Joe.

This is terrible news for Americans who were trying to save a buck.