Producer Inflation Cools Sharply In March, Yet Investors Show Muted Reaction

Producer input prices fell far more than expected in March, aligning with a broader slowdown in consumer inflation seen the previous day, as the early effects of tariffs fail to materialize at the wholesale level.

The Producer Price Index (PPI) increased by 2.7% year-over-year last month, well below the previous 3.2%, according to data released Friday by the Bureau of Labor Statistics. The figure was sharply below economists' forecast of 3.3%.

On a monthly basis, wholesale prices fell by 0.4% in March, following an upwardly revised 0.1% increase in February and missing expectations for a 0.2% gain. The decline was driven largely by goods prices, which accounted for over 70% of the drop in the index for final demand.

Prices for final demand goods slipped 0.9%—the steepest ...

https://www.benzinga.com/economics/macro-economic-events/25/04/44760186/producer-inflation-falls-more-than-predicted-in-march-defy-tariffs-concerns