Inflation fell to 4.6% in February in producer price index
by Zachary Halaschak, Economics Reporter |
March 15, 2023 08:33 AM
Inflation plunged to a 4.6% annual rate in February, as measured by the producer price index.
On a month-to-month basis, the wholesale price index declined by 0.1%, the Bureau of Economic Analysis reported Wednesday morning — the most encouraging news about inflation in a while. The decrease is an indication that inflationary pressures are abating in the face of the Federal Reserve’s campaign to slow economywide spending by hiking interest rates.
Nevertheless, inflation is still running much hotter than the central bank’s target and dinging household purchasing power. Prices paid by producers eventually translate to prices paid by households.
The Fed's target for inflation is 2%.
The high inflation of the past two years has battered household purchasing power and undercut support for President Joe Biden's economic agenda.
Wednesday’s PPI report comes a day after the consumer price index, which is even more closely watched, was released.
Annual inflation fell to 6% after it had been running at 6.4% the month before. The annual inflation has been trending down since it hit a whopping 9.1% in June. Still, though, recent month-to-month price gains have been high in the index, suggesting to economists that the Fed's efforts still have not succeeded in taming inflation.
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https://www.washingtonexaminer.com/policy/economy/inflation-fell-to-4-6-in-february-in-producer-price-index
