The White House praised falling inflation as the producer price index plunged to a 2.7% annual rate in March.
The PPI has reached its lowest level in more than two years, signaling that inflation may be returning to a healthier range. Press secretary Karine Jean-Pierre praised the news in a Thursday statement.
INFLATION PLUMMETS TO 2.7% IN MARCH IN PRODUCER PRICE INDEX
"Today’s report is further evidence that we are making progress bringing inflation down," Jean-Pierre said. "On average, prices set by businesses actually fell last month. This follows yesterday’s news that inflation for consumers is down substantially from its peak last summer. There is more work to do, but this is important progress for our economy and for American families."
President Joe Biden released a statement one day prior celebrating that overall inflation had reached 5% for the year ending in March, down by nearly half from its 9.1% peak last June.
Biden took it as a strong sign for the economy as he tries to stick a soft landing coming out of policies established during the COVID-19 pandemic.
"Today’s report shows continued progress in our fight against inflation with the 12-month inflation rate at the lowest level since May 2021," Biden said in a prepared statement. "This progress follows last week’s news that our job market remains historically strong."
But the Job Creators Network, a conservative advocacy group, said the numbers represent rising inflation that is hurting workers and businesses.
"While the mainstream media will promote this month's reduction in PPI, they will ignore how inflation under Biden's presidency is approximately 15%," JNC President Alfredo Ortiz said. "For small businesses that can't raise their prices, they are one-sixth poorer today than when Biden took office."
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
On a month-to-month basis, the wholesale price index declined by 0.5%, the Bureau of Economic Analysis reported Thursday morning — more encouraging inflation news. The decline surprised forecasters who expected a mild increase rather than a drop.
The PPI's headline number is now the lowest it has been since January 2021, and the monthly decrease was the biggest since March 2020.