US wholesale prices plummeted 0.5% in April, marking the largest monthly drop since the COVID-19 pandemic. This decline, exceeding economist predictions, is largely attributed to a 1.7% plunge in trade services, reflecting the impact of tariffs on profit margins. Annual inflation slowed to 2.4%, while retail sales also weakened. Federal Reserve Chair Jerome Powell cautioned about potential persistent supply shocks, hinting at higher interest rates. Experts predict these cost increases will eventually affect consumer prices.

Prepared by Christopher Adams and reviewed by editorial team.