Higher food and energy prices pushed U.S. wholesale prices up last month, but prices were unchanged outside of those volatile sectors.

Separately, U.S. retail sales fell in April, signaling weakness in the economy at the start of the second quarter. The numbers were released a day after similar downbeat numbers from the nation’s retailers.

The producer price index for finished goods rose 0.7% in April, the U.S. Labor Department said today, versus 1.0% in March. The core PPI, which excludes food and energy, was unchanged for the second month in a row.

Overall wholesale prices grew more than Wall Street expected, but the core inflation number was significantly lower than market predictions. Economists had called for an increase of 0.6% in the headline PPI and 0.2% in the core.
The recent lack of core wholesale price pressures may reassure Federal Reserve policymakers, who have been concerned that consumer prices remain above their 1% to 2% comfort zone. Earlier this week, the Fed left its short-term interest rate target at 5.25% and said inflation pressures remain its top concern about the U.S. economy.

In Friday’s report, the overall producer price index grew 1.0% in March, unchanged from the Labor Department’s initial report. In the 12 months through April, wholesale prices rose 3.2%. The core PPI, in contrast, was up just 1.5% from a year ago.

Meanwhile, U.S. retail sales decreased 0.2% last month, after rising an upwardly revised 1% in March, the U.S. Commerce Department said today. Originally, March sales were seen 0.7% higher.

The 0.2% decline in overall retail sales during April was a surprise on Wall Street. Economists had forecast a 0.4% increase.

Consumer spending makes up about 70% of U.S. gross domestic product. Today’s data came out a day after retail giant Wal-Mart Stores Inc. had said its total U.S. same-store sales fell 3.5% in April.

The Commerce report showed automobile and parts sales fell 1.0% in April. March sales increased 0.4%.

Sales of all retailers except auto and parts dealers were flat in April. Economists expected a 0.4% increase. Demand fell at retail outlets selling clothes and building materials, while it rose at furniture stores. Ex-auto sales in March had gone up 1.1%.