Today's Producer Price Index release has got people talking about reflation again. Wholesale finished goods rose 0.3% in April according to the U.S. Bureau of Labor Statistics, more than the 0.1% increase expected by economists.

The annual inflation rate, however, paints a very different picture. Year-over-year, the Wholesale Price Index was down 3.7% in April, a slightly deeper dip than the 3.5% decline posted for March.

One component that pushed the monthly rate higher was food. Finished food items rose 1.5% in April, the biggest jump in more than a year.

Two production layers below, farm prices moved more dramatically, rising 5.2% after March's 2.2% decline.

Producer Price Indexes For Food

April's surge in food prices could be taken as the leading edge of inflation, at least if you look at our real-time inflation indicator. Inflation's been rising off its April base at 6.9%. When March's PPI figures were released, U.S. monetary inflation was running at a 7.8% annual rate. Today's rate is 8.3%

U.S. Monetary Inflation Vs. Gold