in World News Trump Effect: Wholesale Prices Drop
Wholesale prices dropped more than expected in March.
The Producer Price Index dropped .4% in March – it was expected to rise by .2%.
Wholesale prices unexpectedly fell in March, setting up a favorable inflation backdrop as President Donald Trump began intensifying tariffs against U.S. trading partners, the Bureau of Labor Statistics reported Friday.
The producer price index, considered a leading indicator for pipeline inflation pressures, declined a seasonally adjusted 0.4% for the month, after rising 0.1% in February. Economists surveyed by Dow Jones had been looking for an increase of 0.2%.
Excluding food and energy, so-called core PPI also declined, down 0.1% against the estimate for a 0.3% increase. The index less food, energy and trade services increased 0.1%.
This comes after the consumer price index also fell in March.
According to the Bureau of Labor Statistics, the annual inflation rate declined to 2.4 percent from 2.8 percent in February, the lowest reading since September 2024.
Economists had penciled in a reading of 2.6 percent.On a monthly basis, the consumer price index (CPI) fell by a better-than-expected 0.1 percent.
Core inflation, which excludes volatile energy and food prices, also eased to 2.8 percent. This is the first time that annual core inflation has been below 3 percent since early 2021.
Donald Trump is keeping his promises to the American people.