WEST PALM BEACH, Fla. — Wholesale inflation rose more than expected last month, climbing half a percentage point, according to a report released Friday by the Bureau of Labor Statistics.
Experts say tariffs could be driving up the cost of trade services.
WATCH BELOW: Could food prices climb higher this year?
Food prices are also continuing to inch upward, and forecasts vary widely on how much higher they could go.
The USDA is forecasting food at home prices to rise 2.5% this year.
But Phil Lempert, known as the Supermarket Guru, believes that estimate is actually too low.
"We're going to continue to see prices go up. The government is saying food prices will go up between 2 and 3 percent, I think that's very conservative for this year," Lempert said. "I think we're going to see them go up between 5 and 8 percent at a minimum, and also because of the tariff situation, what we're starting to see is a lot of foreign countries saying we don't want to export to the U.S."
Lempert also expects beef prices to keep rising as the industry works to improve livestock numbers.
Wall Street did not react kindly to Friday's inflation report, closing down more than 500 points.
President Donald Trump announced new 10% tariffs for all countries. This came after the U.S. Supreme Court ruled against the president's authority to impose global tariffs enacted under an emergency powers law.
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