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Jun 1, 2025  |  
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Zach Halaschak


NextImg:Inflation fell to 3.2% in February in producer price index - Washington Examiner

In some good news, inflation, as measured by the producer price index, declined from 3.5% to 3.2% for the year ending in February.

The numbers were released on Thursday by the Bureau of Labor Statistics and the decline is welcome news for the economy.

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On a month-to-month basis, the wholesale price index was flat.

The report comes a day after the more closely watched consumer price index dropped from 3% to 2.8% for the year ending in February, a sign that price pressures are abating and might not be among the top economic risks facing the new Trump administration.

President Donald Trump has been grappling with rising fears of a recession as he launches a multifront trade war. There are also rising fears of a recession given recent slowdowns in the stock market and other warning signs of economic malaise.

Officials at the Federal Reserve are watching the inflation numbers closely to determine whether to lower interest rates further to spur more economic activity or to forgo further rate cuts to try to tamp down inflation.

The Fed cut rates by a whole percentage point last year. As inflation proved difficult to subdue, though, the central bank opted to hold interest rates steady at its January meeting.

The Fed’s goal is 2% annual inflation.

TRUMP’S ‘LITTLE DISTURBANCE’ COULD TURN INTO A RECESSION, ECONOMISTS WARN

Trump has plowed ahead with tariff plans recently, which has caused economic uncertainty to rise and the stock market to post major losses. There are also indications of a slowdown in economic growth, and economists have said the odds of a recession are rising.

The Fed meets next week to decide what to do with interest rates. During its last meeting in January, the central bank opted to pause rate reductions amid the persistently high inflation.