US producer prices surprise Wall St
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Prices charged by manufacturers in the US were flat last month, a surprise that left Wall Street economists optimistic about inflation prospects, writes Diane Coyle. The rate of inflation in factory gate prices has been at or below 2 per cent for more than two years despite cost pressures - in contrast to Britain, where producer price inflation has crept up in recent months.
The news that there was no rise in prices charged for finished goods in March came after two months of unexpectedly high increases. Chris Iggo, an analyst at Chase Manhattan in New York, said: ``This will make the Fed more confident that a soft landing for the economy will be achieved.''
There was a small increase of 0.1 per cent in "core" factory gate prices, excluding food and energy. Both of these categories saw price falls. Finished food product prices were down 0.2 per cent, despite floods in California. Car prices also declined, by an unexpected 0.4 per cent.
There was even better news on prices paid for materials - or ``crude'' goods. They fell 1.3 per cent last month, mostly due to lower food prices. This was the biggest one-month decline since September. Crude prices overall were 1.7 per cent lower than a year earlier.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments