(The Center Square) Newly released federal pricing data shows that producer prices fell in the month of March, another federal report showing lower prices in the U.S.
The U.S. Bureau of Labor Statistics on Friday released its Producer Price Index, a key marker of inflation. The PPI declined 0.4% in March, surprising experts.
PPI has risen 2.7% in the last 12 months. The PPI data comes on the heels of the Consumer Price Index, another key marker of inflation, which surprised experts when it decreased 0.1% for the month of March, the first monthly decrease since 2020.
Some experts warned the lower PPI could be a sign of a coming recession, while others welcomed lower prices as Americans recover from the price hikes under the previous administration.
President Donald Trump’s tariffs had already begun rolling out for this data, but this data does come before his budding trade war with China, where tariffs on both sides continue to rise.
Similar to the CPI, changes in energy prices helped drive the lower costs for Americans.
“Prices for final demand goods moved down 0.9 percent in March, the largest decrease since falling 1.4 percent in October 2023,” BLS said. “Over three-fourths of the March decline is attributable to a 4.0-percent drop in the index for final demand energy. Prices for final demand foods decreased 2.1 percent. In contrast, the index for final demand goods less foods and energy rose 0.3 percent.”
