US wholesale inflation rises in April as FED Chair gives neutral remarks

The US producer price index increased 0.5% last month compared to 0.3% expected by analysts. The index indicates wholesale inflation and just had its highest annualised gain in 12 months. US traders initially interpreted the PPI report as a sign that the FED has more work to do to combat price growth. FED chairman Jerome Powell, speaking at an event in Amsterdam, mentioned that the US economy had been performing very well lately but there's lack of progress in bringing inflation down. Powell said he expects inflation to move back down and reiterated that the probability of more rate hikes is very small.