Year on year, the PPI producer price index falls to the lowest since January 2021. Falling energy costs among those responsible.
Wholesale prices in the United States, which measure inflation on the producer side, fell more than expected in March compared to February, due in particular to the fall in the cost of energy, and fell to a one-year low since January 2021.
Prices fell 0.5% over one month, after stabilizing in February, according to the PPI producer price index released Thursday by the Labor Department. Analysts had expected prices to be stable over the month from February.
This decline is due in particular to the energy price index, which fell by 6.4%, indicates the Department of Labor.
Consequently, over one year, the rise in prices slowed markedly, to 2.7%, against 4.9% in February, thus falling to its lowest level in more than two years.
PPI inflation measures inflation from the perspective of manufacturers and sellers.
The CPI index, which measures inflation on the consumer side, published on Wednesday, slowed to 5% over one year in March, doing better than expected and thus registering at its lowest level for almost two years.
Over one month, inflation came out at +0.1%, against +0.2% expected, after +0.4% in February.
It was the fall in energy prices (-3.5% over the month and -6.4% over one year) which had also contributed to the decline in general inflation.
Inflation as seen by consumers is also measured by another index, the PCE, which is favored by the American central bank (Fed), and is published at the end of the month. The Federal Reserve (Fed) wants to bring it back to around 2% and in February it was 5% over one year.
For the month of March, this index will be published on April 28, just before the next Fed meeting.
