The Bureau of Labor Statistics reported Thursday that prices at the wholesale level increased in April.
The producer price index, which tracks how much manufacturers get for their products at their initial sale, rose on the month but fell from a record in March.
Excluding food, energy and trade services, corePPI rose 0.6% in April and 6.9% from a year ago, but declined from 7.1% last month.
The increases were in line with estimates. In March, the headlinePPI rose 1.6% while core was up 0.9%.
The BLS reported that consumer prices for goods and services in the marketplace rose 8.3% from a year ago, down from 8.5% in March but still indicative of the worst inflation the U.S. has seen since the early 1980s.
There was an increase in the number of people who applied for unemployment benefits for the week ending May 7. The estimate was 194,000.
The number of continuing claims fell to 1.343 million, the lowest since 1970.
While the news has been good for the jobs market, it is inflation that is bedeviling policymakers the most and threatening to derail the expansion. President Joe Biden this week set forth several proposals to tackle the problem of price increases during his administration.
According to the data, gas and groceries have been responsible for much of the inflation surge. The price of used vehicles has been a major inflation component, and the price of motor vehicles and equipment increased on the month.
The gasoline index fell when prices at the pump went down. Gas prices are back around record highs.
Biden has pledged action at the legislative level, but he has also pointed out the Federal Reserve's role. The Fed last week approved a half percentage point increase in its benchmark interest rate, the second increase this year with more expected to come.
The fed funds rate is expected to increase by half a point in June and the year ending with a range of 0.75-1%, according to the futures tracker.
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