Producer prices in the U.S. surged 11% in April compared to the year prior, and those costs are likely to continue to drag down American consumers and businesses in the months to come. Still, there are some reasons to think that the rate of inflation may be flattening out.

The Labor Department's producer price index increased by just 0.5% in April, down from its 1.6% jump the month before. The producer price index is used to calculate inflation on a wholesale level before it reaches U.S. consumers. It's sometimes used to predict the upcoming changes in consumer prices. April's increase in producer costs was the smallest price bump seen in seven months.

April's 11% year-over-year increase was also slightly less than the 11.5% yearly increase seen in March. April was the first time that the yearly difference in producer prices has decreased month-to-month since December 2020.

That slowdown may be coming, but that doesn't help consumers struggling to make ends meet right now. From April to March, the cost of food increased by 1.5%, and shipping and warehouse prices shot up by 3.6%. The price of a new car saw a more modest increase of 0.8% compared to March.

According to a report from the Bureau of Labor Statistics (BLS), consumer prices across the board rose an average of 8.3% in April compared to last year. Like producer prices, the difference in consumer prices was also slightly down from the 8.5% year-over-year increase seen in March. In addition, the increase in consumer price inflation from March to April, 0.3%, is the smallest seen in eight months.

The rate of inflation might be stabilizing, but it's stabilizing at record-high levels. Even if the rate of inflation does calm down, it's still likely to remain near its current high through this year and into the next. Countless goods, including food, housing, and air travel, are still shooting up in price.

In an effort to rein in inflation, in the first week of May, the Federal Reserve boosted interest rates by a half point to a range of between 0.75% and 1%, roughly double the Fed's usual interest bump. The Fed Chair Jerome Powell has implied that another half-point increase is coming in June and another in July.

"While inflation is likely past the peak in the United States, it has gained considerable momentum over the last two years, and is likely to close 2022 well above the Federal Reserve's 2% objective," said chief economist for Comerica Bank Bill Adams. "The Fed will want to see clearer evidence that inflation is cooling and higher interest rates are slowing demand before they start thinking about the endpoint of the current rate hike cycle."