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US wholesale prices dropped 0.5% last month despite President Trump’s tariffs

  • The U.S. Producer Price Index dropped 0.5% in April 2025, marking the first monthly decline since October 2023, as reported by the Labor Department in Washington.
  • This decline occurred amid ongoing tariffs imposed by President Trump and follows his recent de-escalation of the trade war with China, which reduced tariff rates significantly.
  • Core wholesale prices, excluding food and energy, declined by 0.4% in April, largely due to a 0.7% reduction in service prices—the biggest decrease since 2009—primarily reflecting tighter earnings for wholesalers and retailers.
  • Senior economist Sal Guatieri observed that while tariffs have not significantly influenced prices so far, it is expected that their effect on inflation will become apparent in the near future.
  • The data suggest wholesale inflation eased unexpectedly despite tariffs, but economists expect tariff effects to emerge in prices around mid-2025, implying ongoing inflation monitoring is needed.
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DailyTruthReport broke the news in on Wednesday, May 14, 2025.
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