The U.S. wholesale prices increased moderately in April driven by food prices, indicating the low inflation continued to pose risks to the economy, the Labor Department said on Wednesday. The Producer Price Index (PPI), a gauge of inflation at the factory gate, edged up 0.6 percent in April on seasonally adjusted basis. It followed a 0.5 percent rise in March and a decline of 0. 1 percent in February. The prices for goods and services rose 0.6 percent. Prices for foods spiked 2.7 percent and that for energy moved higher by 0.1 percent. Wholesale prices of transportation and warehousing increased 0. 8 percent, while those for trade were up 1.4 percent. Excluding the volatile food and energy sectors, the so-called " core" wholesale prices for goods increased 0.3 percent, below Federal Reserve's annual target of 2 percent, which indicated the general inflation pressure was still tamed. The Federal Reserve has said it recognized that inflation persistently below 2 percent could pose risks to economic performance. The Fed is monitoring the inflation development closely.