The prices of the United States producer achieved their first monthly decrease in almost 1-1/2 years in March, since gasoline prices pulmonize in the last month before US tariffs of imported goods are activated, the Labor Department said on Friday.
The producer’s price index for the final demand fell 0.4% last month after a profit of 0.1% reviewed upward in February, the labor statistics office of the Labor Department said.
The economists surveyed by Reuters had predicted that the PPI increased 0.2% after a previously changed reading in February.
In 12 months to March, the PPI increased 2.7% after moving forward by 3.2% in February.
A 0.9% drop in goods prices represented more than 70% of the monthly PPI decrease. The decrease last month in goods prices was the largest since October 2023 and followed a gain of 0.3% in February.
The prices of the goods were depressed by a 11.1% drop in the cost of gasoline.
Concerns about the most slow global growth due to commercial waves weighed in oil prices.
Wholesale prices fell 2.1% in the midst of decreases in eggs, beef and veal, as well as fresh and dry vegetables.
But the prices of steel products increased by 7.1%.
Excluding volatile food and energy components, goods prices increased 0.3% per second consecutive month.
Commercial tensions have intensified between the United States and China, the main source of imports, which represents the risk that inflation will increase in the coming months.
President Donald Trump increased duties over Chinese products to 125%, just as he delayed reciprocal tariffs to other commercial partners for 90 days.
Beijing on Friday took reprisals with a rate of 125% or yours.
Trump has maintained a 10% general tax in almost all imports from the United States, as well as a 25% tariff on motorized vehicles, steel and aluminum.
“March’s PPI report says almost nothing to the inflation perspective, which is overvalued over tariffs,” said Bill Adams, chief economist of Erica Bank. “Inflation will accelerate prospective if tariffs remain in place.”
However, the anticipated increase in inflation could be tempered a bit softening domestic demand, evident in the March consumer price report that showed monthly decreases in airline rates, as well as the prices of hotels and motel rooms.
That was replicated in the PPI report.
Wholesale airline rates fell by 4.0% after not having changed in February, while the cost of hotel rooms and motel fell 1.2%.
The more decreases that establish moderate increases in the portfolio management rates and the medical care costs, which results in the prices of the services fell 0.2% after not having changed in February.
The portfolio management rates, medical care, hotel accommodation and motel and airline rates are among the components that focus on the calculation of the Central Personal Personal Expenses Price Index, one of the inflation measures tracked by the Federal by its 2%.
Economists estimated that the PCE Central Price Index increased 0.1% in March after jumping 0.4% in February.
That would slow down the annual increase in nucleus inflation to 2.6% of 2.8% in February.
The dollar fell against a coin basket. The United States Treasury produces Rose.
Tariffs, which have hammered financial markets and promoted consumer inflation expectations, have increased the chances of a recession in the next 12 months. The feeling of the consumer and the business has also collapsed.
The minutes of the meeting from March 18 to 19 of the United States published Wednesday showed that policy formulators were almost unanimous that the economy faced risks of simultaneous inflation and slower growth.
Financial markets expect the Fed to resume the reduction of interest rates in June after stopping in January, and reduces its policy rate in 100 basic points this year.
The Fed reference interest rate during the night is currently in the range of 4.25% to 4.50%.