US Wholesale Price Increase Cools; Inflation Worries Ease

Wholesale price increase in the United States dropped further in March strengthening the perception that inflation is tapering. A Bureau of Labor Statistics press release shows the Producer Price Index (PPI) for final demand increased by 0.2 percent in March after a 0.6 percent rise in February and a 0.4 percent increase in January.

A lower inflationary trend could encourage the Federal Reserve to return to interest rate cuts, according to media reports.

Services Drive March Increase

The March increase in the index for final demand is primarily driven by a 0.3-percent rise in prices for final demand services, marking the third consecutive monthly rise.