Energy price surges drive US wholesale inflation to 4% year-over-year

Wholesale prices rose 4% from March 2025, the largest year-over-year increase in more than three years. Energy prices surged 8.5% from February, driving the producer price index up 0.5% from February. These increases were caused by attacks on energy infrastructure and the shutdown of the Strait of Hormuz resulting from the war in Iran. Higher energy costs increase the inflation threat, leaving some Federal Reserve policymakers inclined to raise interest rates.