As expected, inflation decreased in March due to the lack of pricing pressure. On the wholesale level, the Producer Price Index declined by 0.2% while Core PPI, which excludes volatile food and energy prices, also fell 0.2%.
At the consumer level, the Consumer Price Index (CPI) dropped by 0.4%, which was more than the expected 0.3% decrease and the biggest decline in five years. On an annual basis, the rate of inflation decreased by 0.8% to 1.5% when compared to March of last year.
Core CPI, which again strips out volatile food and energy prices, decreased by 0.1%. This was the first decline in 10 years. Core inflation also decreased by 0.3% to 2.1% year over year.
Again, we should expect inflation numbers to go down while the lack of pricing pressure remains. We also need to keep a lookout for signs of deflation, which is a decrease in the general price level of goods and services.
The Truth About Lending keeps a close eye on these and other indicators and are able to help you navigate through both the good and bad times.