Producer Price Index, a measure of wholesale costs, fell 0.5% in April. Margins are squeezed by tariffs and firms will likely pass costs to consumers

U.S. consumer prices rebounded moderately in April as declining food costs partially offset rising rents, leading to the smallest annual increase in four years, but the inflation outlook remains unclear against the backdrop of tariffs.

US wholesale prices fell the most in five years in April, with a historic drop in gauges measuring profit margins suggesting businesses have so far refrained from passing along the cost of higher tariffs.