In March, wholesale prices showed a slight decrease in their growth rate, providing some relief for those concerned about inflation. The Producer Price Index (PPI) rose by 0.2% in March, which was below the 0.3% increase predicted by economists. This marks a slight decrease from the 0.6% increase seen in February.
On a year-over-year basis, the PPI rose by 2.1% in March, indicating an increase from February. Meanwhile, the core inflation reading, which excludes volatile food and energy prices, also showed a 0.2% increase in March, in line with expectations and lower than the previous month’s reading.
The PPI measures the prices that wholesalers charge retailers and distributors, giving an indication of potential price movements in the future. This data comes just after the Consumer Price Index (CPI) showed a 3.5% increase in prices over the year in March, raising concerns about the Federal Reserve’s ability to implement planned rate cuts in June. However, the modest increase in wholesale prices provides some hope for inflation watchers, although concerns about rising prices still persist.
