Inflation Whiplash: New Report Shows Prices Finally Peaking, Up 0.2%

People shop at a grocery store in Wheeling, Ill., Friday, Jan. 19, 2024. (AP Photo/Nam Y. Huh)

A measure of wholesale prices increased less than expected in March, providing some potential relief from worries that inflation will hold higher for longer than many economists had expected.

The producer price index increased 0.2% for the month, less than the 0.3% estimate from the Dow Jones consensus and not as much as the 0.6% increase in February, according to a release Thursday from the Labor Department’s Bureau of Labor Statistics.

Excluding food and energy, core PPI also rose 0.2%, meeting expectations.

The release comes a day after the BLS reported that consumer prices again rose more than expected in March, raising concerns that the Federal Reserve will be unable to lower interest rates anytime soon.

Check CNBC here for the latest updates