Cnn
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The inflationary pressures held up in large levels last month, another indication of a strong economy before most of the aggressive trade policies of President Donald Trump.
The producer prices index, a closely viewed measure of wholesale inflation, has shown that prices paid to producers dropped by 0.4% in March compared to the previous month, when prices increased by 0.1%; And slowed down on an annual basis at 2.7% against 3.2%, according to data from the Bureau of Labor Statistics published on Friday.
Economists expected the monthly prices to increase by 0.2% and accelerate to 3.3% on an annual basis.
PPI, which measures the average variation of prices received by producers of goods and services, serves as potential ringtone for inflation in retail in the coming months. This index is also examined to glean an overview of the initial impacts of Trump’s new and proposed prices.
On Thursday, the latest data on the consumer price index showed that overall inflation has cooled for goods and services that Americans are fluent in. But the prices and the climbing of a trade war quickly with China should lead to price increases for consumers.
Energy prices have lowered the entire PPI, showed Thursday’s data, as they did in the IPC. The Energy for Final Demand index fell 4% for the month.
Energy prices generally increase during this time of year; However, they moved down last month due to an imbalance in the offer as well as problems of recession weighing on crude oil prices.
Bask food prices also dropped last month, down 2.1%.
Excluding food and energy, the categories that tend to be very volatile, the basic PPI dropped by 0.1%compared to February (when it increased by 0.1%), which increased the annual increase to 3.3%, its lowest rate since September.
This story develops and will be updated.
