US producer inflation falls in March

[WASHINGTON] US producer inflation fell sharply last month before fresh tariffs from Donald Trump came into effect, aided by an 11.1 per cent drop in gasoline prices, according to government data published on Friday (Apr 11).

The producer price index (PPI) declined by 0.4 per cent in March, well down from a sharply revised 0.1 per cent increase a month earlier, the Labor Department said in a statement.

The data published on Friday came in significantly below the market consensus of a 0.1 per cent rise, according to Briefing.com.

The fall in producer prices follows a similar monthly decline in the March consumer price index, published earlier this week, underscoring the expected fall in demand for goods following the imposition of fresh tariffs.

The US president introduced sweeping so-called “reciprocal” tariffs against dozens of top trading partners earlier this month, only to abruptly roll them back for most countries earlier this week amid turbulence in finance markets.

His decision leaves in place levies on most goods from China totalling an additional 145 per cent since he came into office, with many other countries now facing a 10 per cent “baseline” tariff. AFP