In the US, producer prices rose below expectations on a monthly and annual basis by 2.7% in March. The Producer Price Index (PPI) decreased by 0.4% on a monthly basis.

In the shadow of tariffs, producer and consumer inflation data were released in the US.

In March, the Producer Price Index (PPI) decreased by 0.4% on a monthly basis, rising by 2.7% annually, falling below expectations. Expectations were pointing towards a 0.3% monthly decrease. The PPI showed a negative trend on a monthly basis for the first time since October 2023. While producer prices increased by 2.7% annually in March, annual producer inflation hit its lowest level since September last year.

Market expectations were for annual producer inflation to be at 3.3% last month. The annual increase in the PPI was recorded at 3.2% in February.

The PPI measures the prices of inputs used in production, providing clues about final product prices and headline inflation. The Federal Reserve in the US monitors all inflation indicators, including the PPI.

Consumer price inflation in the country also came in below expectations in March, with annual inflation at 2.4%. Consumer prices declined for the first time on a monthly basis since May 2020.