Inflation pressures boost wholesale food prices

According to the Associated Press, U.S. wholesale prices increased 0.3% in March, driven higher by the largest increase in food costs in nearly four years. The Labor Department said that the March gain in the producer price index, which measures inflation pressures before they reach the consumer, followed a 0.2% rise in February and a 0.4% jump in January.

Food prices at the wholesale level surged 2.2%, the biggest increase since April 2014, with many categories showing gains. Over the past 12 months, wholesale prices have risen 3%, the fastest annual pace since last November and another sign that inflation pressures have started to increase after years of being dormant.

The big increase in food costs reflected widespread gains across a number of categories with fish prices jumping 62.5%, the biggest gain since 2014, while egg prices were up 41.6% and vegetable costs rose 31.5%.