Inflation rose to 2.1% in March in producer price index, adding to signs prices are hot
By
Zachary Halaschak
April 11, 2024 8:33 am
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Inflation, as measured by the producer price index, rose 0.6 percentage points to 2.1% for the year ending in March, the Bureau of Labor Statistics reported on Thursday, adding to recent data indicating that the Federal Reserve may have to do more to curb price pressures.
Economists had forecast annual wholesale inflation would rise to 2.2%, so the increase was a bit less than anticipated.
On a month-to-month basis, the wholesale price index was running at 0.2%, slightly less than expected.
Meanwhile, “core inflation,” which strips out volatile food and energy prices, rose 0.3 percentage points, slightly more than expected, to 2.4% in the year ending in March.
The report comes one day after the even more closely watched consumer price index report showed that inflation accelerated faster than expected.
CPI inflation rose to 3.5% for the year ending in March, the Bureau of Labor Statistics reported on Wednesday.
“Inflation isn’t any hotter than it was after yesterday’s shock, and the year-to-year increases are barely registering at 2.1% for final demand producer prices,” said Chris Rupkey, chief economist at FWDBONDS. “It is difficult to know what the proper course for the Fed’s interest rate policy is right now, but certainly, the need to restart its rate hikes, paused since last July, does not seem to be necessary at this juncture.”
more
https://www.washingtonexaminer.com/policy/finance-and-economy/2961973/inflation-rose-to-2-1-in-march-in-producer-price-index-adding-to-signs-prices-are-hot/
