Particle.news
Download on the App Store
10 ARTICLES
·
2w ago

US Inflation Eases as Consumer and Wholesale Prices Decline in March

Consumer inflation falls to 2.4% and wholesale prices drop 0.4%, but trade tensions and rising Treasury yields complicate the economic outlook.

Produce is displayed at Eastern Market in Washington, U.S., August 14, 2024. REUTERS/Kaylee Greenlee Beal/File Photo
Image
Economists expected that US wholesale inflation likely heated up in March, with the Producer Price Index accelerating to a 3.3% annual rate from 3.2% in February.

Overview

  • March 2025 data shows consumer inflation dropped to 2.4%, the lowest level in several years, reflecting easing price pressures.
  • The Producer Price Index (PPI) fell 0.4% month-over-month, marking the largest decline since 2023, driven by decreases in energy and goods prices.
  • Core inflation, which excludes volatile food and energy costs, remained stable with minimal changes, signaling underlying price stability.
  • President Trump's tariff policies, including a 10% blanket tariff and increased duties on Chinese goods, are fueling trade uncertainties and are expected to exert upward pressure on prices in the future.
  • Despite easing inflation, rising Treasury yields and investor caution highlight concerns over potential economic disruptions tied to trade policies and broader market volatility.