US Wholesale Price Increase Cools; Inflation Worries Ease
Tapering Price Rise Triggers Hope of Federal Reserve Interest Rate Cuts
By News Desk
Published - Apr 12, 2024, 07:12 AM ET
Wholesale price increase in the United States dropped further in March strengthening the perception that inflation is tapering. A Bureau of Labor Statistics press release shows the Producer Price Index (PPI) for final demand increased by 0.2 percent in March after a 0.6 percent rise in February and a 0.4 percent increase in January.
A lower inflationary trend could encourage the Federal Reserve to return to interest rate cuts, according to media reports.
Services Drive March Increase
The March increase in the index for final demand is primarily driven by a 0.3-percent rise in prices for final demand services, marking the third consecutive monthly rise.
