Although signs of inflationary pressures still prevail, according to the latest report from the Bureau of Labor Statistics, inflation at the wholesale level showed an unexpected fall in the month of March of 0.5% compared to the previous month.
Recent data seems to give a good sign that consumer prices are gradually easing. These Producer Price Index (PPI) figures are lower than the overall 3% increase forecast by Refinitiv economists.
The dramatic cooling of wholesale inflation is driven among other things by thea fall in the prices of services, energy and some foods such as vegetables. For FwdBonds chief economist Chris Rupkey this is good news “inflation seems to be coming off the boil here,” he said.
Although there are still products and services that keep their prices high, such as; meat and eggs, Rupkey noted that “there is a pronounced slowdown in producer goods, and if I had to bet, I would say that this will lead to lower prices for products on store shelves in the coming months”, he indicated.
Since its maximum in June of last year of 11.2%, the PPI has marked a progressive cooling, taking into account that the supply chains affected during the Covid-19 pandemic have become synchronized again.
Also this Wednesday the Office of Labor Statistics published the data of the consumer price index (CPI) which in March was 5%, some 10 tenths less than the previous month, being the lowest annualized rate since May 2021.
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Source: La Opinion
