The news: Wholesale prices jumped in April as higher energy costs filtered through much of the production chain.

• The producer price index increased 1.4% MoM, nearly three times what analysts surveyed by Dow Jones expected, and the largest monthly gain since March 2022.
• The PPI was 6% higher YoY, the largest annual spike since December 2022.

Behind the numbers: The PPI numbers offer an early glimpse into how the turmoil in the Middle East is rapidly increasing companies’ costs.

Transportation expenses are climbing sharply. Companies are largely on the hook for higher fuel expenses incurred by Maersk, UPS, and other logistics companies. Transportation and warehouse prices jumped 3.7% MoM for intermediate and 5% for final demand goods in April, pointing to rising costs throughout the supply chain.

Input costs are rising. The disruption to global oil supply is increasing costs for industries reliant on plastics. Prices for polyethylene, the most common plastic used globally, reached their highest point in nearly four years in March—a pain point for beauty companies, consumer packaged goods (CPG) manufacturers, and countless other companies.

Suppliers are hiking prices. Chinese suppliers are charging more to account for soaring raw material costs, per a Bloomberg report. Companies that supply Walmart, Costco, and other major retailers are increasing prices by up to 5%, while smaller merchants face increases of up to 15%. As expenses rise, retailers are paring inventory orders: US import volume is expected to fall in Q3, per the National Retail Federation’s Global Port Tracker, which could mean emptier shelves and more expensive products this holiday season.