Posted 4/11/2024, 1:04:00 PM
Producer Prices Rise at Fastest Pace in 11 Months but Core Inflation Moderates, Casting Uncertainty on Fed Rate Cut Timing
- Producer price index rose 2.1% in March from a year earlier, the fastest pace since April 2022, but less than expected
- Wholesale inflation eased on a month-to-month basis, up just 0.2% from February
- Core producer prices, excluding food and energy, were up 0.2% month-over-month and 2.4% year-over-year
- Comes amid worries that progress against inflation has stalled, raising doubts about Fed rate cuts
- Investors now expect the first Fed rate cut to come in September rather than March
