The Producer Price Index for final demand declined 0.5 percent in March, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices were unchanged in February and increased 0.4 percent in January. (See table A.) On an unadjusted basis, the index for final demand advanced 2.7 percent for the 12 months ended in March. In March, two-thirds of the decline in the index for final demand can be attributed to a 1.0- percent decrease in prices for final demand goods. The index for final demand services moved down 0.3 percent. Prices for final demand less foods, energy, and trade services ... (full story)

Inflation plunged to a 2.7% annual rate in March, as measured by the producer price index. On a month-to-month basis, the wholesale price index declined by 0.5%, the Bureau of Economic Analysis reported Thursday morning — more encouraging inflation news. 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. (full story)