Inflation tumbled to a 2.7% annual rate in March, according to the Bureau of Labor Statistics鈥� Producer Price Index, reports.

What鈥檚 going on: 鈥淥n a month-to-month basis, the wholesale price index declined by 0.5%, the Bureau of [Labor Statistics] reported Thursday morning鈥攎ore encouraging inflation news. The decrease is an indication that inflationary pressures are abating in the face of the Federal Reserve鈥檚 campaign to slow economywide spending by hiking interest rates.鈥�

• However, inflation is still far higher than the central bank鈥檚 target of 2% and is hurting consumers鈥� purchasing power.

The details: The for final demand goods edged down a seasonally adjusted 0.5% in March, after declining 0.1% in February.

• Excluding food, energy and trade services, prices for final demand goods increased 0.1% in March, following a 0.2% increase in February.
• In the past 12 months, the index for final demand goods鈥攅xcluding food, energy and trade services鈥攈as risen 3.6%.

The backdrop: The Fed has been increasing interest rates for more than a year, with staffers expecting a 鈥渕ild鈥� imminent recession.听
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