Adding to signs that price pressures might be easing, wholesale annual inflation slowed in April to its smallest increase since January 2021, according to a May 11 Bureau of Labor Statistics report and analysis from media outlets.

For the 12 months ended in April, the Producer Price Index — a key indicator of wholesale price changes — dropped to 2.3%.

The increase was below the annual increase of 2.7% in March and economists’ expectations of 2.4%. Lower egg, grain, chicken, diesel, and liquified petroleum gas prices contributed to the decline, according to BLS data.

The PPI advanced 0.2% in April, seasonally adjusted, after final demand prices fell 0.4% in March and were unchanged in February.

Prices for final demand other than foods, energy and trade services rose 0.2% in April after inching up 0.1% in March. For the yearlong period ended in April, the index for final demand aside from foods, energy and trade services increased 3.4%.

The BLS data was released just one day after the bureau announced that the Consumer Price Index rose 0.4% in April on a seasonally adjusted basis, after increasing 0.1% in March.

Over the past 12 months, the all-items CPI increased 4.9% before seasonal adjustment, the slowest rate in two years.

Read more about the April PPI changes here.