Amid looming price hikes from ongoing tariff disputes, US wholesale inflation eased in February, offering temporary relief for consumers.
According to the Labor Department, the producer price index (PPI) remained unchanged from January, following a 0.6 per cent rise the previous month. On an annual basis, producer prices increased by 3.2 per cent, down from January’s 3.7 per cent year-over-year gain.
Core wholesale prices, which exclude volatile food and energy costs, declined by 0.1 per cent from January—marking the first monthly decrease since July. On a yearly basis, core prices rose 3.4 per cent, down from 3.8 per cent in January, indicating a gradual cooling of inflationary pressures.
Trade tensions threaten progress
Despite the easing inflation data, concerns persist about future price trends. President Donald Trump‘s ongoing trade policies threaten to reverse recent gains. Trump has implemented 25 per cent tariffs on foreign steel and aluminium and 20 per cent levies on Chinese imports. Additional tariffs on Canada and Mexico, as well as reciprocal tariffs matching other nations’ duties on US products, are expected in the coming weeks.
Consumer price inflation slows
The Labor Department also reported a slowdown in consumer price inflation. The consumer price index (CPI) rose 2.8 per cent year-over-year in February, compared to 3 per cent in January. Core consumer prices, which exclude food and energy, saw a 3.1 per cent increase—the smallest rise since April 2021.
Notably, gasoline prices dropped by 4.7 per cent last month, offering some relief to consumers. However, food prices climbed by 1.7 per cent from January to February, driven by a sharp 28% surge in egg prices.
(With AP inputs)