US wholesale prices dropped 0.5% last month despite President Trump's tariffs [View all]
Source: Yahoo! Finance/AP
Thu, May 15, 2025 at 8:43 AM EDT
WASHINGTON (AP) — U.S. wholesale prices dropped unexpectedly in April for the first time in more than a year despite President Donald Trump’s sweeping taxes on imports.
The producer price index — which tracks inflation before it hits consumers — fell 0.5% last month from March and rose 2.4% from April 2024, the U.S. Labor Department reported Thursday.
Excluding volatile food and energy prices, so-called core wholesale prices dipped 0.4% from March and rose 3.1% from a year earlier. Economists had expected that producer prices rose modestly in April. A 0.7% drop in services prices brought the index down.
On Tuesday, the Labor Department reported that consumer prices rose just 2.3% last month from April 2024 — smallest year-over-year gain in more than four years. Economists have predicted that Trump’s tariffs would drive up prices, and many expect the impact to show up in June or July.
Read more: https://finance.yahoo.com/news/us-wholesale-prices-dropped-0-124312090.html
It's nuts this morning because most of the financial sites are fixated on Powell and a speech he is giving and have all but ignored the government releases this morning.
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