Broad Price Hikes Seen in Most Food Categories
â€¢ Finished goods prices fell 3.7 percent, year over year, marking the fifth consecutive month in negative territory.
â€¢ Food prices, which represent close to 19 percent of the total index, jumped 1.5 percent last month following a 0.7 percent decline in March. Egg prices, the big story here, sky-rocketed 43.7 percent while solid gains were also recorded in beef & veal, chicken, pork and fresh fruits & vegetables.
Inflation Outlook Remains Muted
â€¢ Regarding the core, the 1.3 percent increase in prescription drugs was largely offset by declines in apparel, footwear and tobacco prices. On a year-over-year basis, core prices remain firmly in positive territory, increasing 3.4 percent.
â€¢ As evidenced by the soft price trends further back in the production pipeline, economic weakness will exert downward pressure on wholesale inflation in the months ahead.