SFS Insights: Price Increases Slowing
- A key measure of inflation fell dramatically in February, according to the latest Producer Price Index (PPI), which tracks what America’s producers get paid for their goods and services. Producer price increases slowed to an annual pace of 4.6% last month, significantly lower than the downwardly revised 5.7% in January, the Labor Department reported Wednesday.
- PPI is one of several closely watched inflation gauges. Because the producer-centric index captures price shifts upstream of the consumer, it’s sometimes looked to as a potential leading indicator of how prices may eventually land at the store level.
- Inflation fighting is still the Fed’s main focus but the outlook for inflation the rest of the year looks promising. Even amid current banking scares, the Federal Reserve (Fed) will still prioritize price stability over growth.
