US wholesalers show that inflation loosens; Trade wars threaten trend

By Paul Wiseman, AP Economics Writer

Washington (AP) – The US wholesale inflation slowed down last month, which indicates that the price pressure loosens for the time being. But progress may not last because President Trump increases his trade wars.

The Ministry of Labor reported on Thursday that its producer price index – which pursues inflation before reaching consumers – remained unchanged compared to January after the increase of 0.6% the month earlier. Compared to a previous year, producer prices rose by 3.2% compared to a previous year's profit of 3.7% in January.

Without volatile food and energy prices, the so-called KernG fell by 0.1% in January last month. Core producer prices rose by 3.4% and lower than 3.8% profit compared to the previous year in January. The numbers were all lower than the economists expected.

The advertisement takes place when Trump increased his trade war with a wide range of US trading partners and sent inflation higher. It effectively raised 25% taxes – tariffs – to foreign steel and aluminum and plastered 20% taxes for Chinese imports. In the coming weeks, he will impose 25% tariffs on Canada and Mexico and introduce “mutual tariffs” that correspond to higher taxes that beat other countries on US products. And on Thursday, the President threatened 200% with European wine, champagne and spirits when Europe is a tariff for US whiskey.

Large retailers have warned that they expect the US consumers to return this year in view of higher costs, some of Trump's customs duties.

On Wednesday, the Ministry of Labor announced that the inflation of consumer prices last month since September slowed down for the first time. The consumer price index rose by 2.8% compared to the previous year compared to an increase of 3% compared to the previous year in January. The core prices of consumers rose by 3.1%compared to the previous year, the smallest increase since April 2021.

Wholesale wholesale prices have decreased by 4.7% last month. Food prices rose by 1.7%from January to February, led by an egg price of 28%.

After the Federal Reserve will be reduced three times in the Federal Reserve three times three times next week. “In today's numbers, the Fed will not see any argument for driving interest rates lower or earlier,” wrote Carl Weinberg and Mary Chen of high frequency economy on Thursday in a comment. “The FED is now much more focused on the effects of tariffs on future food prices than on the effects of egg prices on previous (producer price). ''

Wholesale prices can offer an early look at where the inflation of consumers could be led. Economists also observe it, since some of its components, especially health and financial services, flow into the preferred inflation indicator of the Federal Reserve – personal consumption expenditure or PCE, index. Thomas Ryan from Capital Economics found that some of the wholesale prices that flow into the PCE measure, including hospital costs and international flight prices, are hotter than expected in February.

Originally published: March 13, 2025 at 11:50 a.m. Edt

US wholesalers show that inflation loosens; Trade wars threaten trend

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