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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 decrease since October 2023 and the largest in five years.
  • This decline occurred despite President Trump’s sweeping import tariffs and followed a reduction in tariffs after a trade de-escalation with China earlier in May.
  • Core wholesale prices, excluding food and energy, also fell 0.4% due to a 0.7% drop in services prices, the largest recorded decline since 2009, driven by shrinking trade margins.
  • Senior economist Sal Guatieri noted that while tariffs have not significantly influenced prices so far, it is expected that their effects will become more apparent over time, highlighting the uncertainty surrounding their economic impact.
  • The decline suggests inflation pressures at the wholesale level are easing temporarily, but economists expect tariff-related price increases to appear in the coming months.
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DailyTruthReport broke the news in on Wednesday, May 14, 2025.
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